Commonwealth Consolidated Acts Commonwealth Consolidated ActsAn amount of * ordinary income or * statutory income of an entity is not assessable income and is not * exempt income if the income arises from the entity's consular functions.
Income Tax Assessment Act 1997
No. 38, 1997
Compilation No. 254
Compilation date: 14 October 2024
Includes amendments: Act No. 38, 2024
This compilation is in 12 volumes
Volume 1: sections 1 - 1 to 36 12 pt">- 55
Volume 2: sections 40 - 1 to 67 - 30
Volume 3: sections 70 - 1 to 121 12 pt">- 35
Volume 4: sections 122 - 1 to 197 12 pt">- 85
Volume 5: sections 200 - 1 to 253 - 15
Volume 6: sections 275 - 1 to 313 12 pt">- 85
Volume 7: sections 315 - 1 to 420 - 70
Volume 8: sections 615 - 1 to 721 - 40
Volume 9: sections 723 - 1 to 880 12p t">- 205
Volume 10: sections 900 - 1 to 995 - 1
Volume 11: Endnotes 1 to 3
Volume 12: Endnote 4
Each volume has its own contents
About this compilation
This compilation
This is a compilation of the Income Tax Assessment Act 1997 that shows the text of the law as amended and in force on 14 October 2024 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Chapter 5--Administration
Part 5 - 30--Record - keeping and other obligations
Division 900--Substantiation rules
Guide to Division 900
900 - 1 What this Division is about
Subdivision 900 - A--Application of Division
900 - 5 Application of the requirements of Division 900
900 - 10 Substantiation requirement
900 - 12 Application to recipients and payers of certain withholding payments
Subdivision 900 - B--Substantiating work expenses
900 - 15 Getting written evidence
900 - 20 Keeping travel records
900 - 25 Retaining the written evidence and travel records
900 - 30 Meaning of work expense
900 - 35 Exception for small total of expenses
900 - 40 Exception for laundry expenses below a certain limit
900 - 45 Exception for work expense related to award transport payment
900 - 50 Exception for domestic travel allowance expenses
900 - 55 Exception for overseas travel allowance expenses
900 - 60 Exception for reasonable overtime meal allowance
900 - 65 Crew members on international flights need not keep travel records
Subdivision 900 - C--Substantiating car expenses
900 - 70 Getting written evidence
900 - 75 Retaining the written evidence and odometer records
Subdivision 900 - D--Substantiating business travel expenses
900 - 80 Getting written evidence
900 - 85 Keeping travel records
900 - 90 Retaining the written evidence and travel records
900 - 95 Meaning of business travel expense
Subdivision 900 - E--Written evidence
Guide to Subdivision 900 - E
900 - 100 What this Subdivision is about
Operative provisions
900 - 105 Ways of getting written evidence
900 - 110 Time limits
900 - 115 Written evidence from supplier
900 - 120 Written evidence of depreciating asset expense
900 - 125 Evidence of small expenses
900 - 130 Evidence of expenses considered otherwise too hard to substantiate
900 - 135 Evidence on a payment summary
Subdivision 900 - F--Travel records
Guide to Subdivision 900 - F
900 - 140 What this Subdivision is about
900 - 145 Purpose of a travel record
Operative provisions
900 - 150 Recording activities in travel records
900 - 155 Showing which of your activities were income - producing activities
Subdivision 900 - G--Retaining and producing records
Guide to Subdivision 900 - G
900 - 160 What this Subdivision is about
900 - 165 The retention period
Operative provisions
900 - 170 Extending the retention period if an expense is disputed
900 - 175 Commissioner may tell you to produce your records
900 - 180 How to comply with a notice
900 - 185 What happens if you don't comply
Subdivision 900 - H--Relief from effects of failing to substantiate
900 - 195 Commissioner's discretion to review failure to substantiate
900 - 200 Reasonable expectation that substantiation would not be required
900 - 205 What if your documents are lost or destroyed?
Subdivision 900 - I--Award transport payments
Guide to Subdivision 900 - I
900 - 210 What this Subdivision is about
Operative provisions
900 - 215 Deducting an expense related to an award transport payment
900 - 220 Definition of award transport payment
900 - 225 Substituted industrial instruments
900 - 230 Changes to industrial instruments applied for before 29 October 1986
900 - 235 Changes to industrial instruments solely referable to matters in the instrument
900 - 240 Deducting in anticipation of receiving award transport payment
900 - 245 Effect of exception in this Subdivision on exception for small total of expenses
900 - 250 Effect of exception in this Subdivision on methods of calculating car expense deductions
Part 5 - 35--Miscellaneous
Division 905--Offences
905 - 5 Application of the Criminal Code
Division 909--Regulations
909 - 1 Regulations
Chapter 6--The Dictionary
Part 6 - 1--Concepts and topics
Division 950--Rules for interpreting this Act
950 - 100 What forms part of this Act
950 - 105 What does not form part of this Act
950 - 150 Guides, and their role in interpreting this Act
Division 960--General
Subdivision 960 - B--Utilisation of tax attributes
960 - 20 Utilisation
Subdivision 960 - C--Foreign currency
960 - 49 Objects of this Subdivision
960 - 50 Translation of amounts into Australian currency
960 - 55 Application of translation rules
Subdivision 960 - D--Functional currency
Guide to Subdivision 960 - D
960 - 56 What this Subdivision is about
Operative provisions
960 - 59 Object of this Subdivision
960 - 60 You may choose a functional currency
960 - 61 Functional currency for calculating capital gains and losses on indirect Australian real property interests
960 - 65 Backdated startup choice
960 - 70 What is the applicable functional currency ?
960 - 75 What is a transferor trust ?
960 - 80 Translation rules
960 - 85 Special rule about translation--events that happened before the current choice took effect
960 - 90 Withdrawal of choice
Subdivision 960 - E--Entities
960 - 100 Entities
960 - 105 Certain entities treated as agents
Subdivision 960 - F--Distribution by corporate tax entities
960 - 115 Meaning of corporate tax entity
960 - 120 Meaning of distribution
Subdivision 960 - G--Membership of entities
960 - 130 Members of entities
960 - 135 Membership interest in an entity
960 - 140 Ordinary membership interest
Subdivision 960 - GP--Participation interests in entities
960 - 180 Total participation interest
960 - 185 Indirect participation interest
960 - 190 Direct participation interest
960 - 195 Non - portfolio interest test
Subdivision 960 - H--Abnormal trading in shares or units
960 - 220 Meaning of trading
960 - 225 Abnormal trading
960 - 230 Abnormal trading--5% of shares or units in one transaction
960 - 235 Abnormal trading--suspected 5% of shares or units in a series of transactions
960 - 240 Abnormal trading--suspected acquisition or merger
960 - 245 Abnormal trading--20% of shares or units traded over 60 day period
Subdivision 960 - J--Family relationships
Guide to Subdivision 960 - J
960 - 250 What this Subdivision is about
Operative provisions
960 - 252 Object of this Subdivision
960 - 255 Family relationships
Subdivision 960 - M--Indexation
Guide to Subdivision 960 - M
960 - 260 What this Subdivision is about
960 - 265 The provisions for which indexation is relevant
Operative provisions
960 - 270 Indexing amounts
960 - 275 Indexation factor
960 - 280 Index number
960 - 285 Indexation--superannuation and employment termination
960 - 290 Indexation--levy threshold for the major bank levy
Subdivision 960 - S--Market value
Guide to Subdivision 960 - S
960 - 400 What this Subdivision is about
Operative provisions
960 - 405 Effect of GST on market value of an asset
960 - 410 Market value of non - cash benefits
960 - 412 Working out market value using an approved method
960 - 415 Amounts that depend on market value
Subdivision 960 - T--Meaning of Australia
Guide to Subdivision 960 - T
960 - 500 What this Subdivision is about
Operative provisions
960 - 505 Meaning of Australia
Subdivision 960 - U--Significant global entities
Guide to Subdivision 960 - U
960 - 550 What this Subdivision is about
Operative provisions
960 - 555 Meaning of significant global entity
960 - 560 Meaning of global parent entity
960 - 565 Meaning of annual global income
960 - 570 Meaning of global financial statements
960 - 575 Meaning of notional listed company group
Division 961--Notional tax offsets
Subdivision 961 - A--Dependant (non - student child under 21 or student) notional tax offset
Guide to Subdivision 961 - A
961 - 1 What this Subdivision is about
Entitlement to the notional tax offset
961 - 5 Who is entitled to the notional tax offset
Amount of the notional tax offset
961 - 10 Amount of the dependant (non - student child under 21 or student) notional tax offset
961 - 15 Reduced amounts of the dependant (non - student child under 21 or student) notional tax offset
961 - 20 Reductions to take account of the dependant's income
Subdivision 961 - B--Dependant (sole parent of a non - student child under 21 or student) notional tax offset
Guide to Subdivision 961 - B
961 - 50 What this Subdivision is about
Operative provisions
961 - 55 Who is entitled to the notional tax offset
961 - 60 Amount of the dependant (sole parent of a non - student child under 21 or student) notional tax offset
961 - 65 Reductions to take account of change in circumstances
Division 974--Debt and equity interests
Subdivision 974 - A--General
Guide to Division 974
974 - 1 What this Division is about
974 - 5 Overview of Division
Operative provisions
974 - 10 Object
Subdivision 974 - B--Debt interests
974 - 15 Meaning of debt interest
974 - 20 The test for a debt interest
974 - 25 Exceptions to the debt test
974 - 30 Providing a financial benefit
974 - 35 Valuation of financial benefits--general rules
974 - 40 Valuation of financial benefits--rights and options to terminate early
974 - 45 Valuation of financial benefits--convertible interests
974 - 50 Valuation of financial benefits--value in present value terms
974 - 55 The debt interest and its issue
974 - 60 Debt interest arising out of obligations owed by a number of entities
974 - 65 Commissioner's power
Subdivision 974 - C--Equity interests in companies
974 - 70 Meaning of equity interest in a company
974 - 75 The test for an equity interest
974 - 80 Equity interest arising from arrangement funding return through connected entities
974 - 85 Right or return contingent on aspects of economic performance
974 - 90 Right or return at discretion of company or connected entity
974 - 95 The equity interest
Subdivision 974 - D--Common provisions
974 - 100 Treatment of convertible and converting interests
974 - 105 Effect of action taken in relation to interest arising from related schemes
974 - 110 Effect of material change
974 - 112 Determinations by Commissioner
Subdivision 974 - E--Non - share distributions by a company
974 - 115 Meaning of non - share distribution
974 - 120 Meaning of non - share dividend
974 - 125 Meaning of non - share capital return
Subdivision 974 - F--Related concepts
974 - 130 Financing arrangement
974 - 135 Effectively non - contingent obligation
974 - 140 Ordinary debt interest
974 - 145 Benchmark rate of return
974 - 150 Schemes
974 - 155 Related schemes
974 - 160 Financial benefit
974 - 165 Convertible and converting interests
Division 975--Concepts about companies
Subdivision 975 - A--General
975 - 150 Position to affect rights in relation to a company
975 - 155 When is an entity a controller (for CGT purposes) of a company?
975 - 160 When an entity has an associate - inclusive control interest
Subdivision 975 - G--What is a company's share capital account?
975 - 300 Meaning of share capital account
Subdivision 975 - W--Wholly - owned groups of companies
975 - 500 Wholly - owned groups
975 - 505 What is a 100% subsidiary?
Division 976--Imputation
976 - 1 Franked part of a distribution
976 - 5 Unfranked part of a distribution
976 - 10 The part of a distribution that is franked with an exempting credit
976 - 15 The part of a distribution that is franked with a venture capital credit
Division 977--Realisation events, and the gains and losses they realise for income tax purposes
CGT assets
977 - 5 Realisation event
977 - 10 Loss realised for income tax purposes
977 - 15 Gain realised for income tax purposes
977 - 20 Realisation event
977 - 25 Disposal of trading stock: loss realised for income tax purposes
977 - 30 Ending of an income year: loss realised for income tax purposes
977 - 35 Disposal of trading stock: gain realised for income tax purposes
977 - 40 Ending of an income year: gain realised for income tax purposes
977 - 50 Meaning of revenue asset
977 - 55 Loss or gain realised for income tax purposes
Division 980--Affordable housing
Guide to Division 980
980 - 1 What this Division is about
Subdivision 980 - A--Providing affordable housing
Operative provisions
980 - 5 Providing affordable housing
980 - 10 Eligible community housing providers
980 - 15 Affordable housing certificates
Part 6 - 5--Dictionary definitions
Division 995--Definitions
995 - 1 Definitions
Table of Subdivisions
Guide to Division 900
900 - A Application of Division
900 - B Substantiating work expenses
900 - C Substantiating car expenses
900 - D Substantiating business travel expenses
900 - E Written evidence
900 - F Travel records
900 - G Retaining and producing records
900 - H Relief from effects of failing to substantiate
900 - I Award transport payments