Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 Section 10 - 5 (at the end of the table)
Add:
work in progress |
|
receipt of a work in progress amount ............. | 15 - 50 |
2 Section 12 - 5 (at the end of the table)
Add:
work in progress |
|
payment of a work in progress amount ............ | 25 - 95 |
3 At the end of Division 15
Add:
15 - 50 Work in progress amounts
Your assessable income includes a * work in progress amount that you receive.
Note: To find out whether the amount is deductible to the payer, see section 25 - 95.
4 Subsection 20 - 30(1) (after table item 1.8)
Insert:
1.8A | 25 - 95 | work in progress amount |
5 At the end of Division 25
Add:
25 - 95 Deduction for work in progress amounts
(1) You can deduct a * work in progress amount that you pay for the income year in which you pay it to the extent that, as at the end of that income year:
(a) a recoverable debt has arisen in respect of the completion or partial completion of the work to which the amount related; or
(b) you reasonably expect a recoverable debt to arise in respect of the completion or partial completion of that work within the period of 12 months after the amount was paid.
(2) You can deduct the remainder (if any) of the * work in progress amount for the following income year.
(3) An amount is a work in progress amount to the extent that:
(a) an entity agrees to pay the amount to another entity (the recipient ); and
(b) the amount can be identified as being in respect of work (but not goods) that has been partially performed by the recipient for a third entity but not yet completed to the stage where a recoverable debt has arisen in respect of the completion or partial completion of the work.
(4) An amount does not stop being a work in progress amount merely because it is paid after a recoverable debt has arisen in respect of the completion or partial completion of the work to which the amount related.
6 Subsection 995 - 1(1)
Insert:
"work in progress amount" has the meaning given by section 25 - 95.
7 Application
The amendments made by this Schedule apply to amounts paid on or after 23 September 1998.