Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-10
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FINANCIAL TRANSACTIONS
Division 243
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Limited recourse debt
Subdivision 243-C
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Amounts included in assessable income and deductions
Operative provisions
SECTION 243-45 Deduction for later payments in respect of debt 243-45(1)
This section applies if:
(a) an amount was included in the debtor's assessable income under section 243-40 or a deduction was reduced under section 243-55 ; and
(b) the debtor makes a payment to the creditor, after the termination of the debt arrangement, in respect of the debt (other than an amount to the extent to which it is a payment of interest, of *notional interest or in the nature of interest).
243-45(2)
This is how to work out the amount of the deduction: Working out the amount of the deduction
Step 1.
Step 2.
Step 3.
243-45(3)
The amount can be deducted for the income year in which the payment is made.
Limit on deductions
243-45(4)
The total amounts deducted under this section in respect of a debt, and under section 243-50 in respect of a replacement debt, cannot exceed the sum of:
(a) any amounts included in the debtor's assessable income under this Division in respect of the original debt; and
(b) any amount by which deductions in respect of the original debt were reduced under section 243-55 .
View history note
Hide history noteSECTION 243-45 Deduction for later payments in respect of debt 243-45(1)
This section applies if:
(a) an amount was included in the debtor's assessable income under section 243-40 or a deduction was reduced under section 243-55 ; and
(b) the debtor makes a payment to the creditor, after the termination of the debt arrangement, in respect of the debt (other than an amount to the extent to which it is a payment of interest, of *notional interest or in the nature of interest).
243-45(2)
This is how to work out the amount of the deduction: Working out the amount of the deduction
Step 1.
Work out the amount that would be worked out under subsection 243-35(2) if the debt were terminated immediately before the payment.
Step 2.
Work out the amount that would have been worked out under subsection 243-35(4) at that time if the payment had been taken into account.
Step 3.
The amount of the deduction is the amount (if any) by which the amount worked out under Step 2 exceeds the amount worked out under Step 1.
243-45(3)
The amount can be deducted for the income year in which the payment is made.
Limit on deductions
243-45(4)
The total amounts deducted under this section in respect of a debt, and under section 243-50 in respect of a replacement debt, cannot exceed the sum of:
(a) any amounts included in the debtor's assessable income under this Division in respect of the original debt; and
(b) any amount by which deductions in respect of the original debt were reduced under section 243-55 .
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