Income Tax Assessment Act 1997



Division 230 - Taxation of financial arrangements  

Guide to Division 230  

SECTION 230-5   Scope of this Division  

You have a financial arrangement if you have one or more cash settlable legal or equitable rights and/or obligations to receive or provide a financial benefit.

This Division does not apply to all financial arrangements. The main exceptions are if:

(a) you are:

(i) an individual; or

(ii) a superannuation entity or fund, managed investment scheme or an entity substantially similar to a managed investment scheme under foreign law with assets of less than $100 million; or

(iii) an ADI, securitisation vehicle or other financial sector entity with an aggregated turnover of less than $20 million; or

(iv) another entity with an aggregated turnover of less than $100 million, financial assets of less than $100 million and assets of less than $300 million;
and either:

(iva) the arrangement is to end not more than 12 months after you start to have it; or

(v) the arrangement is not a qualifying security; or

(b) the arrangement is a financial arrangement under section 230-50 (equity interests etc) and neither a fair value election, a hedging financial arrangement election nor an election to rely on financial reports applies to the arrangement.


Section 230-455 provides for the exceptions referred to in paragraph (a).

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