INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

Commonwealth Consolidated Acts

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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

TABLE OF PROVISIONS

Long Title

CHAPTER 1--Introduction and core provisions

PART 1-1--PRELIMINARY

Division 1--Preliminary

1.1. Short title
1.5. Commencement
1.7. Administration of this Act
1.10. Definitions and rules for interpreting this Act

PART 1-3--CORE PROVISIONS

Division 4--How to work out the income tax payable on your taxable income

4.1. Application of the Income Tax Assessment Act 1997
4.11. Temporary budget repair levy

Division 5--How to work out when to pay your income tax

Subdivision 5-A--How to work out when to pay your income tax

5.5. Application of Division 5 of the Income Tax Assessment Act 1997
5.7. References in tax sharing agreements to former section 204
5.10. General interest charge liabilities under former subsection 204(3)
5.15. Application of section 5 - 15 of the Income Tax Assessment Act 1997

Division 6--Assessable income and exempt income

6.2. Effect of this Division
6.3. Assessable income for income years before 1997 - 98
6.20. Exempt income for income years before 1997 - 98

Division 8--Deductions

8.2. Effect of this Division
8.3. Deductions for income years before 1997 - 98
8.10. No double deductions for income year before 1997 - 98 and income year after 1996 - 97

CHAPTER 2--Liability rules of general application

PART 2-1--ASSESSABLE INCOME

Division 15--Some items of assessable income

15.1. General application provision
15.10. Application of section 15 - 10 of the Income Tax Assessment Act 1997 to bounties and subsidies
15.15. Application of section 15 - 15 of the Income Tax Assessment Act 1997 to profit - making undertaking or plan
15.20. Application of section 15 - 20 of the Income Tax Assessment Act 1997 to royalties
15.30. Application of section 15 - 30 of the Income Tax Assessment Act 1997 to insurance or indemnity payments
15.35. Application of section 15 - 35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax

Division 20--Items included to reverse the effect of past deductions

Subdivision 20-A--Insurance, indemnity or recoupment for deductible expenses

20.1. Application of Subdivision 20 - A of the Income Tax Assessment Act 1997

Subdivision 20-B--Disposal of a car for which lease payments have been deducted

20.100. Application of Subdivision 20 - B of the Income Tax Assessment Act 1997
20.105. The cost of a car acquired in the 1996 - 97 income year or an earlier income year
20.110. The termination value of a car disposed of in the 1996 - 97 income year or an earlier income year
20.115. Reducing the assessable amount for the disposal of a car in the 1997 - 98 income year or later if there has been an earlier disposal of it

PART 2-5--RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS

Division 25--Some amounts you can deduct

25.1. Application of Division 25 of the Income Tax Assessment Act 1997
25.40. Application of section 25 - 40 of the Income Tax Assessment Act 1997
25.45. Application of section 25 - 45 of the Income Tax Assessment Act 1997
25.50. Application of section 25 - 90 of the Income Tax Assessment Act 1997
25.65. Local government election expenses

Division 26--Some amounts you cannot deduct, or cannot deduct in full

26.1. Application of Division 26 of the Income Tax Assessment Act 1997
26.30. Application of section 26 - 30 of the Income Tax Assessment Act 1997

Division 30--Gifts or contributions

30.1. Application of Division 30 of the Income Tax Assessment Act 1997
30.5. Keeping in force old declarations and instruments
30.25. Keeping in force the old gifts registers
30.102. Fund, authorities and institutions taken to be endorsed

Division 32--Entertainment expenses

32.1. Application of Division 32 of the Income Tax Assessment Act 1997

Division 34--Non-compulsory uniforms

34.1. Application of Division 34 of the Income Tax Assessment Act 1997
34.5. Things done under former section 51AL of the Income Tax Assessment Act 1936

Division 35--Deferral of losses from non-commercial business activities

35.10. Deductions for certain new business investment
35.20. Application of Commissioner's decisions

Division 36--Tax losses of earlier income years

36.100. Tax losses for the 1997 - 98 and later income years
36.105. Tax losses for 1989 - 90 to 1996 - 97 income years
36.110. Tax losses for 1957 - 58 to 1988 - 89 income years

PART 2-10----CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE

Division 40--Capital allowances

Subdivision 40-B--Core provisions

40.10. Plant
40.12. Plant acquired after 30 June 2001
40.13. Accelerated depreciation for split or merged plant
40.15. Recalculating effective life
40.20. IRUs
40.25. Software
40.30. Spectrum licences
40.33. Datacasting transmitter licences
40.35. Mining unrecouped expenditure
40.37. Post - 30 June 2001 mining expenditure
40.38. Mining cash bidding payments
40.40. Transport expenditure
40.43. Post - 30 June 2001 transport expenditure
40.44. No additional decline in certain cases
40.45. Intellectual property
40.47. IRUs
40.50. Forestry roads and timber mill buildings
40.55. Environmental impact assessment
40.60. Pooling under Subdivision 42 - L of the former Act
40.65. Substituted accounting periods
40.67. Methods for working out decline in value
40.70. References to amounts deducted and reductions in deductions
40.72. New diminishing value method not to apply in some cases
40.75. Mining expenditure incurred after 1 July 2001 on an asset
40.77. Mining, quarrying or prospecting rights or information held before 1 July 2001
40.80. Other expenditure incurred after 1 July 2001 on a depreciating asset
40.100. Commissioner's determination of effective life
40.105. Calculations of effective life

Subdivision 40-BA--Backing business investment

40.120. Backing business investment--accelerated decline in value for businesses with turnover less than $500 million
40.125. Backing business investment--when an asset of yours qualifies
40.130. Method for working out accelerated decline in value
40.135. Division 40 of the Income Tax Assessment Act 1997 applies to later years
40.137. Choice to not apply this Subdivision to an asset

Subdivision 40-BB--Temporary full expensing of depreciating assets

40.140. Definitions
40.145. Interaction with other provisions
40.150. When an asset of yours qualifies for full expensing
40.155. Businesses with turnover under $5 billion
40.157. Corporate tax entities with income under $5 billion
40.160. Full expensing of first and second element of cost for post - 2020 budget assets
40.165. Exclusions--entities covered by section 40 - 155 or 40 - 157
40.167. Exclusions--entities covered by section 40 - 157
40.170. Full expensing of eligible second element of cost
40.175. When is an amount included in the eligible second element
40.180. Division 40 of the Income Tax Assessment Act 1997 applies to later years
40.185. Balancing adjustment for assets not used or located in Australia
40.190. Choice to not apply this Subdivision to an asset for an income year

Subdivision 40-C--Cost

40.230. Car limit

Subdivision 40-D--Balancing adjustments

40.285. Balancing adjustments
40.287. Disposal of pre - 1 July 2001 mining depreciating asset to associate
40.288. Disposal of pre - 1 July 2001 mining non - depreciating asset to associate
40.289. Surrendered firearms
40.290. Reduction of deductions under former Act etc.
40.292. Balancing adjustment--assets used for both general tax purposes and R&D activities
40.293. Balancing adjustment--partnership assets used for both general tax purposes and R&D activities
40.295. Later year relief
40.340. Roll - overs
40.345. Balancing adjustments for depreciating assets that retain CGT indexation
40.365. Involuntary disposals

Subdivision 40-E--Low-value and software development pools

40.420. Low - value pools under Division 42 continue
40.430. Allocating assets to low - value pools
40.450. Software development pools

Subdivision 40-F--Primary production depreciating assets

40.515. Water facilities, grapevines and horticultural plants
40.520. Special rule for water facilities you no longer hold
40.525. Amounts deducted for water facilities

Subdivision 40-G--Capital expenditure of primary producers and other landholders

40.645. Electricity supply and telephone lines
40.650. Special rule for land that you no longer hold
40.670. Farm consultants

Subdivision 40-I--Capital expenditure that is deductible over time

40.825. Genuine prospectors
40.832. New method not to apply in some cases

Subdivision 40-J--Ships depreciated under section 57AM of the Income Tax Assessment Act 1936

40.840. Ships depreciated under section 57AM of the Income Tax Assessment Act 1936

Division 43--Deductions for capital works

43.100. Application of Division 43 to quasi - ownership rights over land
43.105. Application of subsections 43 - 50(1) and (2) to hotel buildings and apartment buildings
43.110. Application of subsection 43 - 75(3)

Division 45--Disposal of leases and leased plant

45.1. Application of Division 45 of the Income Tax Assessment Act 1997
45.3. Application of Division 45 to disposals between February 1999 and September 1999
45.40. Application of Division to plant formerly owned by exempt entities

PART 2-15----NON-ASSESSABLE INCOME

Division 50--Exempt entities

50.1. Application of Division 50 of the Income Tax Assessment Act 1997
50.50. Charities established prior to 1 July 1997

Division 51--Exempt amounts

51.1. Application of Division 51 of the Income Tax Assessment Act 1997

Division 52--Certain pensions, benefits and allowances are exempt from income tax

52.1. Application of Division 52 of the Income Tax Assessment Act 1997

Division 53--Various exempt payments

53.1. Application of Division 53 of the Income Tax Assessment Act 1997

Division 54--Exemption for certain payments made under structured settlements and structured orders

54.1. Application of Division 54 of the Income Tax Assessment Act 1997

Division 55--Payments that are not exempt from income tax

55.1. Application of Division 55 of the Income Tax Assessment Act 1997

Division 59--Particular amounts of non-assessable non-exempt income

Subdivision 59-N--Native title benefits

59.50. Indigenous holding entities

PART 2-20----TAX OFFSETS

Division 61--Generally applicable tax offsets

Subdivision 61-L--Tax offset for Medicare levy surcharge (lump sum payments in arrears)

61.575. Application of Subdivision 61 - L of the Income Tax Assessment Act 1997

PART 2-25----TRADING STOCK

Division 70--Trading stock

70.1. Application of Division 70 of the Income Tax Assessment Act 1997
70.10. Accounting for your disposal of items that stop being trading stock because of the change of definition
70.20. Application of section 70 - 20 of the Income Tax Assessment Act 1997 to trading stock bought on or after 1 July 1997
70.55. Cost of live stock acquired by natural increase
70.70. Valuing interests in FIFs on hand at the start of 1991 - 92
70.90. Application of sections 70 - 90 and 70 - 95 of the Income Tax Assessment Act 1997 to disposals of trading stock outside the ordinary course of business
70.100. Application of section 70 - 100 of the Income Tax Assessment Act 1997 to disposals of trading stock outside ordinary course of business
70.105. Application of section 70 - 105 of the Income Tax Assessment Act 1997 to deaths on or after 1 July 1997
70.115. Application of section 70 - 115 of the Income Tax Assessment Act 1997 to insurance and indemnity payments in 1997 - 98 and later income years

PART 2-40----RULES AFFECTING EMPLOYEES AND OTHER TAXPAYERS RECEIVING PAYG WITHHOLDING PAYMENTS

Division 82--Pre-10 May 2006 entitlements to life benefit termination payments

Subdivision 82-A--Application of Division

82.10. Pre - 10 May 2006 entitlements-- transitional termination payments

Subdivision 82-B--Transitional termination payments: general

82.10A. Recipient has reached preservation age
82.10B. Lower cap amount
82.10C. Recipient under preservation age
82.10D. Upper cap amount

Subdivision 82-C--Pre-payment statements

82.10E. Transitional termination payments--pre - payment statements

Subdivision 82-D--Directed termination payments made to superannuation and other entities

82.10F. Directed termination payments
82.10G. Directed termination payments not assessable income and not exempt income

Subdivision 82-E--Pre-10 May 2006 entitlements and employment termination payments made after 1 July 2012

82.10H. Transitional termination payments may reduce ETP cap amount for payments under section 82 - 10 after 1 July 2012

Division 83A--Employee share schemes

Subdivision 83A-A--Application of Division 83A of the Income Tax Assessment Act 1997

83A.5. Application of Division 83A of the Income Tax Assessment Act 1997

Subdivision 83A-B--Application of former provisions of the Income Tax Assessment Act 1936

83A.10. Savings--continued operation of former provisions
83A.15. Indeterminate rights

CHAPTER 3--Specialist liability rules

PART 3-1--CAPITAL GAINS AND LOSSES: GENERAL TOPICS

Division 102--Application of Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997

102.1. Application of Parts 3 - 1 and 3 - 3 of the Income Tax Assessment Act 1997
102.5. Working out capital gains and capital losses
102.15. Applying net capital losses
102.20. Net capital gains, capital gains and capital losses for income years before 1998 - 99
102.25. Transitional capital gains tax provisions for certain Cocos (Keeling) Islands and Norfolk Island assets

Division 104--CGT events

Subdivision 104-C--End of a CGT asset

104.25. Cancellation, surrender and similar endings

Subdivision 104-D--Bringing into existence a CGT asset

104.40. Granting an option

Subdivision 104-E--Trusts

104.70. Capital payment before 18 December 1986 for trust interest

Subdivision 104-G--Shares

104.135.Capital payment for shares

Subdivision 104-I--Australian residency ends

104.165.Choices made under subsection 104 - 165(2) of the Income Tax Assessment Act 1997
104.166.Subsection 104 - 165(1) still applies if you continue to be a short term Australian resident

Subdivision 104-J--CGT events relating to roll-overs

104.175.Company ceasing to be member of wholly - owned group after roll - over
104.185.Change of status of replacement asset for a roll - over under Division 17A of former Part IIIA of the 1936 Act or Division 123 of the 1997 Act

Subdivision 104-K--Other CGT events

104.205.Partial realisation of intellectual property
104.235.CGT event K7: asset used for old law R&D activities

Division 108--CGT assets

Subdivision 108-A--What a CGT asset is

108.5. CGT assets

Subdivision 108-B--Collectables

108.15. Sets of collectables

Subdivision 108-D--Separate CGT assets

108.75. Capital improvements to CGT assets for which a roll - over may be available
108.85. Improvement threshold

Division 109--Acquisition of CGT assets

Subdivision 109-A--Operative rules

109.5. General acquisition rules

Division 110--Cost base and reduced cost base

Subdivision 110-A--Cost base

110.25. Cost base of CGT asset of life insurance company or registered organisation
110.35. Incidental costs

Division 112--Modifications to cost base and reduced cost base

Subdivision 112-A--General rules

112.20. Market value substitution rule

Subdivision 112-B--Special rules

112.100. Effect of terminated gold mining exemptions

Division 114--Indexation of cost base

114.5. When indexation relevant

Division 118--Exemptions

Subdivision 118-A--General exemptions

118.10. Interests in collectables
118.24A.Pilot plant

Subdivision 118-B--Main residence

118.110.Foreign residents
118.195.Exemption--dwelling acquired from deceased estate

Subdivision 118-C--Goodwill

118.260.Business exemption threshold

Division 121--Record keeping

121.15. Retaining records under Division 121
121.25. Records for mergers between qualifying superannuation funds

PART 3-3--CAPITAL GAINS AND LOSSES: SPECIAL TOPICS

Division 124--Replacement-asset roll-overs

Subdivision 124-C--Statutory licences

124.140.New statutory licence--ASGE licence etc.
124.141.ASGE licence etc.--cost base of ineligible part
124.142.ASGE licence etc.--cost base of aquifer access licence etc.

Subdivision 124-I--Change of incorporation

124.510.Application of Subdivision 124 - I of the Income Tax Assessment Act 1997

Division 125--Demerger relief

Subdivision 125-B--Consequences for owners of interests

125.75. Employee share schemes

Division 126--Roll-overs

Subdivision 126-A--Merger of qualifying superannuation funds

126.100.Merger of qualifying superannuation funds

Subdivision 126-B--Transfer of life insurance business

126.150.Roll - over on transfer of life insurance business
126.160.Effects of roll - over
126.165.References to Subdivision 126 - B of the Income Tax Assessment Act 1997

Division 128--Effect of death

128.15. Effect on the legal personal representative or beneficiary

Division 130--Investments

Subdivision 130-A--Bonus shares and units

130.20. Issue of bonus shares or units

Subdivision 130-B--Rights

130.40. Exercise of rights

Subdivision 130-C--Convertible notes

130.60. Shares or units acquired by converting a convertible note

Division 134--Options

134.1. Exercise of options

Division 136--Foreign residents

Subdivision 136-A--Making a capital gain or loss

136.25. When an asset is taxable Australian property

Division 137--Granny flat arrangements

Subdivision 137-A--Granny flat arrangements
--

137.10. Applicable CGT events

Division 140--Share value shifting

Subdivision 140-A--When is there share value shifting?

140.7. Pre - 1994 share value shifts irrelevant
140.15. Off - market buy backs

Division 149--When an asset stops being a pre-CGT asset

149.5. Assets that stopped being pre - CGT assets under old law

Division 152--Small business relief

152.5. Small business roll - over chosen but no capital gain returned
152.10. Small business roll - over not chosen and time remains to acquire a replacement asset
152.15. Amendment of assessments

PART 3-5--CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS

Division 165--Income tax consequences of changing ownership or control of a company

Subdivision 165-CA--Applying net capital losses of earlier income years

165.95. Application of Subdivision 165 - CA of the Income Tax Assessment Act 1997

Subdivision 165-CB--Working out the net capital gain and the net capital loss for the income year of the change

165.105.Application of Subdivision 165 - CB of the Income Tax Assessment Act 1997

Subdivision 165-CC--Change of ownership or control of company that has an unrealised net loss

165.115E.Choice to use global method to work out unrealised net loss

Subdivision 165-CD--Reductions after alterations in ownership or control of loss company

165.115U.Choice to use global method to work out adjusted unrealised loss
165.115ZC.When certain notices to be given
165.115ZD.Adjustment (or further adjustment) for interest realised at a loss after global method has been used

Subdivision 165-C--Deducting bad debts

165.135.Application of Subdivision 165 - C of the Income Tax Assessment Act 1997

Division 166--Income tax consequences of changing ownership or control of a listed public company

Subdivision 166-C--Deducting bad debts

166.40. Application of Subdivision 166 - C of the Income Tax Assessment Act 1997

Division 167--Companies whose shares carry unequal rights to dividends, capital distributions or voting power

167.1. Application of provisions

Division 170--Treatment of company groups for income tax purposes

Subdivision 170-A--Transfer of tax losses within certain wholly-owned groups of companies

170.45. Special rules affecting utilisation of losses in a bundle do not affect the amount of a tax loss that can be transferred
170.55. Ordering rule for losses previously transferred under Subdivision 707 - A of the Income Tax Assessment Act 1997

Subdivision 170-B--Transfer of net capital losses within certain wholly-owned groups of companies

170.101.Application of Subdivision 170 - B of the Income Tax Assessment Act 1997
170.145.Special rules affecting utilisation of losses in a bundle do not affect the amount of a net capital loss that can be transferred
170.155.Ordering rule for losses previously transferred under Subdivision 707 - A of the Income Tax Assessment Act 1997

Subdivision 170-C--Provisions applying to both transfers of tax losses and transfers of net capital losses within wholly-owned groups of companies

170.220.Direct and indirect interests in the loss company
170.225.Direct and indirect interests in the gain company

Subdivision 170-D--Transfer of life insurance business

170.300.Transfer of life insurance business

Division 175--Use of a company's losses, deductions or bad debts to avoid income tax

Subdivision 175-CA--Tax benefits from unused net capital losses of earlier income years

175.40. Application of Subdivision 175 - CA of the Income Tax Assessment Act 1997

Subdivision 175-CB--Tax benefits from unused capital losses of the current year

175.55. Application of Subdivision 175 - CB of the Income Tax Assessment Act 1997

Subdivision 175-C--Tax benefits from unused bad debt deductions

175.78. Application of Subdivision 175 - C of the Income Tax Assessment Act 1997

Division 197--Tainted share capital accounts

Subdivision 197-A--Definitions

197.1. Definitions

Subdivision 197-B--General application provision

197.5. Application of new Division 197

Subdivision 197-C--Special provisions about companies whose share capital accounts were tainted when old Division 7B was closed off

197.10. Subdivision applies to companies whose share capital accounts were tainted when old Division 7B was closed off
197.15. Account taken to have ceased to be tainted when old Division 7B was closed off
197.20. After introduction day, account taken to have become tainted under new Division 197 to extent of previous tainting
197.25. Special provisions if company chooses to untaint after introduction day

PART 3-6--THE IMPUTATION SYSTEM

Division 201--Object and application of Part 3-6

201.1. Estimated debits

Division 203--Benchmark rule

203.1. Franking periods straddling 1 July 2002

Division 205--Franking accounts

205.1. Order of events provision
205.5. Washing estimated debits out of the franking account before conversion
205.10. Converting the franking account balance to a tax paid basis--companies whose 2001 - 02 franking year ends on 30 June 2002
205.15. Converting the franking account balance to a tax paid basis--companies whose 2001 - 02 franking year ends before 30 June 2002
205.20. A late balancing company may elect to have its FDT liability determined on 30 June
205.25. Franking deficit tax
205.30. Deferring franking deficit
205.35. No franking deficit tax if franking account in deficit at the close of the 2001 - 02 income year of a late balancing entity
205.70. Tax offset arising from franking deficit tax liabilities
205.71. Modification of franking deficit tax offset rules
205.75. Working out the tax offset for the first income year
205.80. Application of Subdivision C of Division 5 of former Part IIIAA of the Income Tax Assessment Act 1936

Division 208--Exempting entities and former exempting entities

208.111.Converting former exempting company's exempting account balance on 30 June 2002

Division 210--Venture capital franking

210.1. Order of events provision
210.5. Washing estimated venture capital debits out of the old sub - account before conversion
210.10. Converting the venture capital sub - account balance to a tax paid basis--PDFs whose 2001 - 02 franking year ends on 30 June 2002
210.15. Converting the venture capital sub - account balance to a tax paid basis--PDFs whose 2001 - 02 franking year ends before 30 June 2002

Division 214--Administering the imputation system

214.1. Application
214.5. Entity must give a franking return
214.10. Notice to a specific corporate tax entity
214.15. Effect of a refund on franking returns
214.20. Franking returns for the income year
214.25. Commissioner may make a franking assessment
214.30. Commissioner taken to have made a franking assessment on first return
214.35. Amendments within 3 years of the original assessment
214.40. Amended assessments are treated as franking assessments
214.45. Further return as a result of a refund affecting a franking deficit tax liability
214.50. Later amendments--on request
214.55. Later amendments--failure to make proper disclosure
214.60. Later amendments--fraud or evasion
214.65. Further amendment of an amended particular
214.70. Other later amendments
214.75. Amendment on review etc.
214.80. Notice of amendments
214.85. Validity of assessment
214.90. Objections
214.100.Due date for payment of franking tax
214.105.General interest charge
214.110.Refunds of amounts overpaid
214.120.Record keeping
214.125.Power of Commissioner to obtain information
214.135.Interpretation

Division 219--Imputation for life insurance companies

219.40. Reversing and replacing (on tax paid basis) certain franking credits that arose before 1 July 2002
219.45. Reversing (on tax paid basis) certain franking debits that arose before 1 July 2002

Division 220--Imputation for NZ resident companies and related companies

220.1. Application to things happening on or after 1 April 2003
220.5. Residency requirement for income year including 1 April 2003
220.10. NZ franking company cannot frank before 1 October 2003
220.35. Extended time to make NZ franking choice
220.501.Franking and exempting accounts of new former exempting entities

PART 3-10----FINANCIAL TRANSACTIONS

Division 235--Particular financial transactions

Subdivision 235-I--Instalment trusts

235.810.Application of Subdivision 235 - I of the Income Tax Assessment Act 1997

Division 242--Leases of luxury cars

242.10. Application
242.20. Balancing adjustments

Division 245--Forgiveness of commercial debts

Subdivision 245-A--Application of Division 245 of the Income Tax Assessment Act 1997

245.5. Application and saving
245.10. Pre - 28 June 1996 arrangements etc.

Division 247--Capital protected borrowings

Subdivision 247-A--Interim apportionment methodology

247.5. Interim apportionment methodology
247.10. Products listed on the Australian Stock Exchange that have explicit put options
247.15. Other capital protected products
247.20. The indicator method
247.25. The percentage method

Subdivision 247-B--Other transitional provisions

247.75. Post - July 2007 capital protected borrowings
247.80. Capital protected borrowings in existence on 1 July 2013
247.85. Extensions and other changes

Division 253--Financial claims scheme for account-holders with insolvent ADIs

Subdivision 253-A--Tax treatment of entitlements under financial claims scheme

253.5. Application of section 253 - 5 of the Income Tax Assessment Act 1997
253.10. Application of sections 253 - 10 and 253 - 15 of the Income Tax Assessment Act 1997

PART 3-25----PARTICULAR KINDS OF TRUSTS

Division 275--Australian managed investment trusts

Subdivision 275-A--Choice for capital treatment of MIT gains and losses

275.10. Consequences of making choice--Commissioner cannot make certain amendments to previous assessments

Subdivision 275-L--Modification for non-arm's length income

275.605.Trustee taxed on amount of non - arm's length income of managed investment trust--not applicable for pre - introduction scheme where amount derived before start of 2018 - 19 income year

Division 276--Attribution managed investment trusts

Subdivision 276-A--Application

276.5. Application of Division 276

Subdivision 276-B--Starting income year

276.25. Starting income year

Subdivision 276-T--Becoming an AMIT: unders and overs

276.700.Application of Subdivision to MIT that becomes AMIT
276.705.Accounting for unders and overs for base years before becoming an AMIT

Subdivision 276-U--Becoming an AMIT: CGT treatment of payment by trustee of AMIT

276.750.Payment by trustee on or after 1 July 2011--certain CGT provisions etc. apply for the purposes of working out non - assessable part for first income year of AMIT
276.755.Payment by trustee before 1 July 2011--limit on amendment of assessment

PART 3-30----SUPERANNUATION

Division 290--Contributions

290.10. Directed termination payments not deductible etc.
290.15. Early balancers--deduction limits from end of 2006 - 2007 income year to 1 July 2007

Division 291--Excess concessional contributions

Subdivision 291-A--Application of Division 291 of the Income Tax Assessment Act 1997

291.10. Application of Division 291 of the Income Tax Assessment Act 1997

Subdivision 291-C--Modifications for defined benefit interests

291.170.Transitional rules for notional taxed contributions

Division 292--Excess non-concessional contributions tax

292.80. Application of excess non - concessional contributions tax from 10 May 2006 to 1 July 2007
292.80A.Transitional release authority
292.80B.Giving a transitional release authority to a superannuation provider
292.80C.Superannuation provider given transitional release authority must pay amount
292.85. Non - concessional contributions cap for a financial year
292.90. Non - concessional contributions for a financial year

Division 293--Sustaining the superannuation contribution concession

Subdivision 293-A--Application of Division 293 tax rules

293.10. Application of Division 293 of the Income Tax Assessment Act 1997

Division 294--Transfer balance cap

Subdivision 294-A--Application of Division 294 of the Income Tax Assessment Act 1997

294.10. Application of Division 294 of the Income Tax Assessment Act 1997
294.30. Minor excess transfer balances disregarded if remedied in first 6 months
294.55. Repayment of limited recourse borrowing arrangements
294.80. Structured settlement contributions made before 1 July 2017--debit increased to match credits

Subdivision 294-B--CGT relief

294.100.Object
294.105.Interpretation
294.110.Segregated current pension assets
294.115.Superannuation funds using the proportionate method--deemed sale and purchase of CGT asset
294.120.Superannuation funds using the proportionate method--disregard initial capital gain but recognise deferred notional gain
294.125.Pooled superannuation trust using proportionate or alternative exemption method--deemed sale and purchase of CGT asset
294.130.Pooled superannuation trusts using proportionate or alternative exemption method--disregard initial capital gain but recognise deferred notional gain

Division 295--Taxation of superannuation entities

Subdivision 295-B--Modifications of the Income Tax Assessment Act 1997 for 30 June 1988 assets

295.75. Application of Subdivision
295.80. Meaning of 30 June 1988 asset
295.85. Cost base of 30 June 1988 asset
295.90. Market value of stock exchange listed assets
295.95. Adjustment of cost base as at 30 June 1988--return of capital
295.100.Exercise of rights

Subdivision 295-C--Notices relating to contributions

295.190.Deductions for personal contributions

Subdivision 295-F--Exempt income

295.390.Fixed interest complying ADFs--exemption of income attributable to certain 25 May 1988 deposits

Subdivision 295-G--Deductions

295.465.Complying funds--deductions for insurance premiums

Subdivision 295-I--No-TFN contributions income

295.610.No - TFN contributions income

Division 301--Superannuation member benefits paid from complying plans etc.

301.5. Extended application to certain foreign superannuation funds
301.85. Extended meaning of disability superannuation benefit for superannuation income stream
301.90. Application of Subdivision 301 - F of the Income Tax Assessment Act 1997
301.95. Amendment of assessments to give effect to Subdivision 301 - F of the Income Tax Assessment Act 1997 etc.
301.100.Amendment of assessments--transitional rule for permanent incapacity benefits, etc.
301.105.Transitional rules for Schedule 9 to the Treasury Laws Amendment (2022 Measures No. 4) Act 2023

Division 302--Superannuation death benefits paid from complying plans etc.

302.5. Extended application to certain foreign superannuation funds
302.195.Extended meaning of death benefits dependant for superannuation income stream
302.195A.Meaning of death benefits dependant for 2008 - 2009 income year

Division 303--Superannuation benefits paid in special circumstances

303.10. Superannuation lump sum member benefit paid to member having a terminal medical condition
303.15. Superannuation lump sum member benefit paid to member on compassionate ground relating to the coronavirus

Division 304--Superannuation benefits in breach of legislative requirements etc.

304.15. Excess payments from release authorities

Division 305--Superannuation benefits paid from non-complying superannuation plans

Subdivision 305-B--Superannuation benefits from foreign superannuation funds

305.80. Lump sums paid into complying superannuation plans post - FIF abolition

Division 306--Roll-overs etc.

306.10. Roll - over superannuation benefit--directed termination payment

Division 307--Key concepts relating to superannuation benefits

307.125.Treatment of tax free component of existing pension payments etc.
307.127.Extension--income stream replacing an earlier one because of an involuntary roll - over
307.230.Total superannuation balance--modification for transfer balance just before 1 July 2017
307.231.Total superannuation balance--limited recourse borrowing arrangements
307.290.Taxed and untaxed elements of death benefit superannuation lump sums
307.345.Low rate component--Effect of rebate under the Income Tax Assessment Act 1936

PART 3-32----CO-OPERATIVES AND MUTUAL ENTITIES

Division 316--Demutualisation of friendly society health or life insurers

Subdivision 316-A--Application

316.1. Application of Division 316 of the Income Tax Assessment Act 1997

PART 3-35----INSURANCE BUSINESS

Division 320--Life insurance companies
--

Subdivision 320-A--Preliminary

320.5. Life insurance companies that are friendly societies

Subdivision 320-C--Deductions and capital losses

320.85. Deduction for increase in value of liabilities under risk components of life insurance policies

Subdivision 320-D--Taxable income and tax loss of life insurance companies

320.100.Savings--tax losses of previous income years

Subdivision 320-F--Virtual PST

320.170.Transfer of part of an asset to a virtual PST
320.175.Transfers of assets to virtual PST
320.180.Deferred annuities purchased before 1 July 2007

Subdivision 320-H--Segregation of assets for the purpose of discharging exempt life insurance policies

320.225.Transfer of part of an asset to segregated exempt assets
320.230.Transfers of assets to segregated exempt assets

Division 322--Assistance for policyholders with insolvent general insurers

Subdivision 322-B--Tax treatment of entitlements under financial claims scheme

322.25. Application of section 322 - 25 of the Income Tax Assessment Act 1997
322.30. Application of section 322 - 30 of the Income Tax Assessment Act 1997

PART 3-45----RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS

Division 328--Small business entities

328.1. Definitions
328.110.Working out whether you are a small business entity for the 2007 - 08 or 2008 - 09 income year--turnover for earlier income years
328.111.Access to certain small business concessions for former STS taxpayers that are winding up a business
328.112.Working out whether you are a small business entity for certain small business concessions--entities connected with you
328.115.When you stop using the STS accounting method
328.120.Continuing to use the STS accounting method
328.125.Meaning of STS accounting method
328.175.Choices made in relation to depreciating assets used in primary production business
328.180.Increased access to accelerated depreciation from 12 May 2015 to 30 June 2024
328.181.Full expensing--2020 budget time to 30 June 2023
328.182.Backing business investment
328.185.Depreciating assets allocated to STS pools
328.195.Opening pool balances for 2007 - 08 income year
328.200.General small business pool for the 2012 - 13 income year
328.440.Taxpayers who left the STS on or after 1 July 2005
328.445.Bonus deduction for upskilling employees of small business entities etc.
328.450.Expenditure eligible for the bonus deduction for upskilling employees of small business entities etc.
328.455.Technology investment boost deduction
328.460.What expenditure qualifies for the technology investment boost
328.465.Energy incentive
328.470.What expenditure qualifies for the energy incentive

Division 355--Research and Development

Subdivision 355-D--Registration for activities before 2011-12 income year

355.200.Registration for activities before 2011 - 12 income year

Subdivision 355-E--Balancing adjustments for decline in value deductions for assets used in R&D activities

355.320.Balancing adjustment--assets only used for R&D activities
355.325.Balancing adjustment--R&D partnership assets only used for R&D activities
355.340.Balancing adjustment--tax exempt entities that become taxable

Subdivision 355-F--Integrity rules

355.415. Expenditure reduced to reflect group mark - ups

Subdivision 355-K--Modified application of the old R&D law

355.550.Prepayments of R&D expenditure extending into the 2011 - 12 income year

Subdivision 355-M--Undeducted core technology expenditure

355.600.Scope
355.605.Core technology that is a depreciating asset
355.610.Core technology that is not a depreciating asset

Division 375--Australian films

Subdivision 375-G--Film losses

375.100.Film component of tax loss for 1997 - 98 or later income year
375.105.Film component of tax loss for 1989 - 90 to 1996 - 97 income years
375.110.Film loss for 1989 - 90 or later income year

Division 392--Long-term averaging of primary producers' tax liability

392.1. Application of Division 392 of the Income Tax Assessment Act 1997
392.25. Transitional provision--election under section 158A of the Income Tax Assessment Act 1936

Division 393--Farm management deposits

Subdivision 393-A--Tax consequences of farm management deposits

393.1. Application of Division 393 of the Income Tax Assessment Act 1997
393.5. Unrecouped FMD deduction
393.10. Unrecouped FMD deduction for deposits made as a result of section 25B of the Loan (Income Equalization Deposits) Act 1976
393.27. Trustee may choose that a beneficiary is a chosen beneficiary of the trust
393.30. Unclaimed moneys

Subdivision 393-B--Meaning of farm management deposit and owner

393.40. The day the deposit was made for deposits made as a result of section 25B of the Loan (Income Equalization Deposits) Act 1976

Division 410--Copyright collecting societies

410.1. Application of section 51 - 43 of the Income Tax Assessment Act 1997

Division 415--Designated infrastructure projects

Subdivision 415-B--Application of Subdivision 415-B of the Income Tax Assessment Act 1997

415.10. Application of Subdivision 415 - B of the Income Tax Assessment Act 1997

PART 3-50----CLIMATE CHANGE

Division 420--Registered emissions units

Subdivision 420-A--General application provision

420.1. Application of Division 420 of the Income Tax Assessment Act 1997

PART 3-80----ROLL-OVERS APPLYING TO ASSETS GENERALLY

Division 615--Roll-overs for business restructures

Subdivision 615-A--Modifications for roll-overs between the 2011 and 2012 Budget times

615.5. Roll - overs between the 2011 and 2012 Budget times
615.10. Modifications--when additional consequences can apply
615.15. Modifications--trading stock
615.20. Modifications--revenue assets

Division 620--Assets of wound-up corporation passing to corporation with not significantly different ownership

Subdivision 620-A--Corporations covered by Subdivision 124-I

620.10. Application of Subdivision 620 - A of the Income Tax Assessment Act 1997

PART 3-90----CONSOLIDATED GROUPS

Division 700--Application of Part 3-90 of Income Tax Assessment Act 1997

700.1. Application of Part 3 - 90 of Income Tax Assessment Act 1997

Division 701--Modified application of provisions of Income Tax Assessment Act 1997 for certain consolidated groups formed in 2002-3 and 2003-4 financial years

Subdivision 701-A--Preliminary

701.1. Transitional group and transitional entity
701.5. Chosen transitional entity
701.7. Working out the cost base or reduced cost base of a pre - CGT asset after certain roll - overs
701.10. Interpretation

Subdivision 701-B--Modified application of provisions

701.15. Tax cost and trading stock value not set for assets of chosen transitional entities
701.20. Working out allocable cost amount on formation for subsidiary members other than chosen transitional entities
701.25. No operation of value shifting and loss transfer provisions to membership interests in chosen transitional entities
701.32. No adjustment of amount of liabilities required in working out allocable cost amount
701.35. Act, transaction or event giving rise to CGT event for pre - formation roll - over after 16 May 2002 to be disregarded if cost base etc. would be different
701.40. When entity leaves transitional group, head company may choose, for purposes of transitional group's allocable cost amount, to increase terminating values of over - depreciated assets
701.45. When entity leaves transitional group, head company may choose, for purposes of transitional group's allocable cost amount, to use formation time market values, instead of terminating values, for certain pre - CGT assets
701.50. Increased allocable cost amount for leaving entity if it takes privatised asset brought into group by chosen transitional entity

Division 701A--Modified application of provisions of Income Tax Assessment Act 1997 for entities with continuing majority ownership from 27 June 2002 until joining a consolidated group

701A.1. Continuing majority - owned entity, designated group etc.
701A.5. Modified application of Part 3 - 90 of Income Tax Assessment Act 1997 to trading stock of continuing majority - owned entity
701A.7. Modified application of Part 3 - 90 of Income Tax Assessment Act 1997 to registered emissions units of continuing majority - owned entity
701A.10.Modified application of Part 3 - 90 of Income Tax Assessment Act 1997 to certain internally generated assets of continuing majority - owned entity

Division 701B--Modified application of provisions of Income Tax Assessment Act 1997 relating to CGT event L1

701B.1. Modified application of CGT Consolidation provisions to allow immediate availability of capital loss for CGT event L1

Division 701C--Modified application etc. of provisions of Income Tax Assessment Act 1997: transitional foreign-held membership structures

Subdivision 701C-A--Overview

701C.1. Overview

Subdivision 701C-B--Membership rules allowing foreign holding

701C.10.Additional membership rules where entities are interposed between the head company and a subsidiary member--case where an interposed entity is a foreign resident and the subsidiary member is a company
701C.15.Additional membership rules where entities are interposed between the head company and a subsidiary member--case where an interposed entity is a foreign resident and the subsidiary member is a trust or partnership
701C.20.Transitional foreign - held subsidiaries and transitional foreign - held indirect subsidiaries

Subdivision 701C-C--Modifications of tax cost setting rules
--

701C.25.Application and object of this Subdivision
--
701C.30.Transitional foreign - held subsidiary to be treated as part of head company
--
701C.35.Trading stock value not set for assets of transitional foreign - held subsidiaries
701C.40.Cost setting rules for exit cases--modification of core rules
701C.50. Cost setting rules for exit cases--reference to modification of core rule

Division 701D--Transitional foreign loss makers

Subdivision 701D-A--Object of this Division

701D.1. Object of this Division

Subdivision 701D-B--Rules allowing transitional foreign loss makers to remain outside consolidated group

701D.10.Transitional foreign loss maker not member of group if certain conditions satisfied
701D.15.Choice to apply transitional rules to entity

Division 702--Modified application of this Act to assets that an entity brings into a consolidated group

702.1. Modified application of section 40 - 77 of this Act to assets that an entity brings into a consolidated group
702.4. Extended operation of subsection 40 - 285(3)
702.5. Modified application of subsection 40 - 285(6) of this Act after entity brings assets into consolidated group

Division 703--Consolidated groups and their members

703.30. Debt interests that are not membership interests
703.35. Employee share schemes

Division 705--Tax cost setting amount for assets where entities become members of consolidated groups

Subdivision 705-E--Expenditure relating to exploration, mining or quarrying

705.300.Application and object of this Subdivision
705.305.Rules affecting depreciating assets
705.310.Adjustable value of head company's notional assets

Division 707--Losses for head companies when entities become members etc.

Subdivision 707-A--Transfer of losses to head company

707.145.Certain choices to cancel the transfer of a loss may be revoked

Subdivision 707-C--Amount of transferred losses that can be utilised

707.325.Increasing the available fraction for a bundle of losses by increasing the real loss - maker's modified market value
707.326.Events involving only value donor and real loss - maker not covered by rule against inflation of modified market value
707.327.Choosing available fraction to apply to value donor's loss
707.328.Income year and conditions for possible transfer under Division 170 of the Income Tax Assessment Act 1997
707.328A.Some events involving only group members not covered by rule against inflation of modified market value
707.329.Modified market value at a time before 8 December 2004
707.350.Alternative loss utilisation regime to Subdivision 707 - C of the Income Tax Assessment Act 1997
707.355.Ignore certain losses in working out when a choice can be made under this Subdivision

Subdivision 707-D--Special rules about losses

707.405.Special rules about losses referable to part of income year

Division 709--Other rules applying when entities become subsidiary members etc.

Subdivision 709-D--Deducting bad debts

709.200.Application of Subdivision 709 - D of the Income Tax Assessment Act 1997

Division 712--Certain rules for where entities cease to be subsidiary members of consolidated groups

Subdivision 712-E--Expenditure relating to exploration, mining or quarrying

712.305.Reducing adjustable value of head company's notional asset

Division 713--Rules for particular kinds of entities

Subdivision 713-L--Transitional relief for certain transactions relating to life insurance companies

713.500.Object of Subdivision
713.505.When this Subdivision applies (first case)
713.510.When this Subdivision applies (second case)
713.515.Entities must choose the relief
713.520.Conditions
713.525.Time of transfer
713.530.What the relief is
713.535.Subsequent consequences
713.540.Requirement to notify happening of new event
713.545.Discount capital gain in certain cases

Subdivision 713-M--General insurance companies

713.700.Application

Division 715--Interactions between the consolidation rules and other areas of the income tax law

Subdivision 715-F--Interactions with Division 230 (financial arrangements)

715.380.Exit history rule not to affect certain matters related to Division 230 financial arrangements

Subdivision 715-J--Entry history rule and choices

715.658.Application
715.659.Extension of time for making choice if joining time was before commencement

Subdivision 715-K--Exit history rule and choices

715.698.Application
715.699.Extension of time for making choice if leaving time was before commencement

Division 716--Miscellaneous special rules

Subdivision 716-G--Software development pools

716.340.Expenditure incurred before 1 July 2001 and allocated to a software pool

Division 719--MEC rules

Subdivision 719-A--Modified application of Part 3-90 to MEC groups

719.2. Modified application of Part 3 - 90 to MEC groups

Subdivision 719-B--MEC groups and their members

719.5. Debt interests that are not membership interests
719.10. Effect of Division 701C
719.15. Modified effect of subsection 701D - 10(2)
719.30. Employee share schemes

Subdivision 719-C--Cost setting

719.160.Transitional cost setting rules on joining have effect with modifications
719.161.Modified effect of section 701 - 1
719.163.Modified effect of section 701 - 35
719.165.Modified effect of paragraph 701 - 45(1)(b)

Subdivision 719-F--Losses

719.305.Available fraction for bundle of losses not affected by concessional rules
719.310. Certain choices may be revoked

Subdivision 719-I--Bad debts

719.450.Application of Subdivision 719 - I of the Income Tax Assessment Act 1997

Division 721--Liability for payment of tax where head company fails to pay on time

Subdivision 721-A--Application of Division

721.25. References in tax sharing agreements to former table item 25

PART 3-95----VALUE SHIFTING

Division 723--Direct value shifting by creating right over non-depreciating asset

723.1. Application of Division 723

Division 725--Direct value shifting affecting interests in companies and trusts

725.1. Application of Division 725

Division 727--Indirect value shifting affecting interests in companies and trusts, and arising from non-arm's length dealings

727.1. Application of Division 727
727.230.Transitional exclusion for certain indirect value shifts relating mainly to services
727.470.Affected interests do not include equity or loan interests owned by entity that is eligible to be an STS taxpayer

CHAPTER 4--International aspects of income tax

PART 4-5--GENERAL

Division 815--Cross-border transfer pricing

Subdivision 815-A--Cross-border transfer pricing

815.1. Application of Subdivision 815 - A of the Income Tax Assessment Act 1997
815.5. Cross - border transfer pricing guidance
815.10. Scheme penalty applies in pre - commencement period as if only the old law applied
815.15. Application of Subdivisions 815 - B, 815 - C and 815 - D of the Income Tax Assessment Act 1997

Division 820--Application of the thin capitalisation rules

820.10. Application of Division 820 of the Income Tax Assessment Act 1997
820.12. Application of Division 974 of the Income Tax Assessment Act 1997 for the purposes of Division 820 of that Act
820.45. Transitional provision--accounting standards and prudential standards

Division 830--Application of the foreign hybrid rules

830.1. Standard application
830.15. Modified version of income tax law to apply for certain past income years
830.20. Modifications of income tax law

Division 832--Hybrid mismatch rules

Subdivision 832-A--Application of Division 832 of the Income Tax Assessment Act 1997

832.10. Application of Division 832 of the Income Tax Assessment Act 1997 (other than imported hybrid mismatch rule)
832.15. Application of imported hybrid mismatch rule

Division 840--Withholding taxes

Subdivision 840-M--Managed investment trust amounts

840.805.Managed investment trust amounts
840.810.Payment of tax under section 840 - 805

Subdivision 840-S--Labour mobility program withholding tax

840.905.Application of Subdivision 840 - S of the Income Tax Assessment Act 1997

Division 842--Exempt Australian source income and gains of foreign residents

Subdivision 842-I--Investment manager regime

842.207.Application of replacement version of Subdivision 842 - I
842.208.Modified meaning of IMR foreign fund for the purposes of earlier income years
842.209.Residence of corporate limited partnerships
842.210.Treatment of IMR foreign fund that is a corporate tax entity
842.215.Treatment of foreign resident beneficiary that is not a trust or partnership
842.220.Treatment of foreign resident partner that is not a trust or partnership
842.225.Treatment of trustee of an IMR foreign fund
842.230.Pre - 2012 IMR deduction
842.235.Pre - 2012 IMR capital loss
842.240.Pre - 2012 non - IMR net income , pre - 2012 non - IMR Division 6E net income and pre - 2012 non - IMR net capital gain
842.245.and

Division 880--Sovereign entities and activities

880.1. Application of Division 880 of the Income Tax Assessment Act 1997
880.5. Certain income of sovereign entity in respect of a scheme is non - assessable non - exempt income if covered by a private ruling
880.10. Certain amounts of sovereign entity in respect of a scheme are not deductible if covered by a private ruling
880.15. Sovereign entity's capital gain from membership interest etc.--gain disregarded
880.20. Sovereign entity's capital loss from membership interest etc.--loss disregarded
880.25. Asset of sovereign entity--deemed sale and purchase

CHAPTER 5--Administration

PART 5-35----MISCELLANEOUS

Division 909--Regulations

909.1. Regulations

CHAPTER 6--The Dictionary

PART 6-1--CONCEPTS AND TOPICS

Division 960--General

Subdivision 960-B--Utilisation of tax attributes

960.20. Utilisation--corporate loss carry back

Subdivision 960-E--Entities

960.100.Effect of this Subdivision
960.105.Entities, and members of entities, benefiting from the application of this Subdivision
960.110.No taxation consequences to result from changes to managed investment scheme
960.115.Certain entities treated as agents

Subdivision 960-M--Indexation

960.262.Application of Subdivision 960 - M of the Income Tax Assessment Act 1997
960.275.Indexation factor

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