Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 380 - National Rental Affordability Scheme  

Subdivision 380-A - National Rental Affordability Scheme Tax Offset  

NRAS certificates issued to partnerships and trustees

SECTION 380-17   Elections by NRAS approved participants that are partnerships or trustees - tax offsets  

Entitlement to tax offset

380-17(1)  
A *member of the *NRAS consortium (other than the electing member) is entitled to a *tax offset for the income year if the member is an individual, a *corporate tax entity or a *superannuation fund. Amount of tax offset

380-17(2)  
The amount of the *tax offset is the amount worked out using the following formula:


Total tax offsets × Member's rent
Total rent

where:

member ' s rent
means:


(a) if *NRAS rent was payable for the *NRAS dwelling in relation to the whole of the *NRAS year - the rent *derived by the *member from the NRAS dwelling during the NRAS year; or


(b) if NRAS rent was payable for the NRAS dwelling in relation to only part of the NRAS year - the rent derived by the member from the NRAS dwelling during that part of the NRAS year.

total rent
means:


(a) if *NRAS rent was payable for the *NRAS dwelling in relation to the whole of the *NRAS year - the rent *derived from the NRAS dwelling during the NRAS year; or


(b) if NRAS rent was payable for the NRAS dwelling in relation to only part of the NRAS year - the rent derived from the NRAS dwelling during that part of the NRAS year.

total tax offsets
means the total of the *tax offsets to which entities would be entitled under section 380-15 or 380-20 because of *NRAS rent *derived:


(a) from any of the *NRAS dwellings covered by the *NRAS certificate; and


(b) during the *NRAS year;

that *flows indirectly to them from the electing member (or would otherwise flow indirectly to them from the electing member, as mentioned in paragraph 380-20(1)(d) ).

380-17(3)  
The *tax offset to which the indirect entity would otherwise be entitled under section 380-15 for the income year because of the *NRAS certificate and the *NRAS dwelling is reduced by the amount worked out using the following formula:


Amount worked out under subsection (2) × Amount of the *tax offset to
which the indirect entity would
otherwise be entitled under section 380-15
Total tax offsets

where:

total tax offsets
has the same meaning as in subsection (2).

380-17(4)  
Treat the references in subsection (2) to the *NRAS year as being references to a period that occurs during the NRAS year, if the *NRAS certificate is apportioned for the period. Amount of tax offset - rent that passes through NRAS approved participant

380-17(5)  
For the purposes of the references in the definitions in subsection (2) to rent *derived from the *NRAS dwelling during the *NRAS year, disregard *NRAS rent derived by a *member of the *NRAS consortium from the NRAS dwelling during a period in the NRAS year, to the extent that another member derives rent from the NRAS dwelling during the period because:


(a) the first member is the *NRAS approved participant of the NRAS consortium throughout the period; and


(b) the first member, in accordance with the contractual *arrangements that established the NRAS consortium, passes the NRAS rent on to the other member.

Note:

There may be more than one NRAS approved participant during an NRAS year. The electing member may be the NRAS approved participant for only part of the NRAS year.

380-17(6)  
For the purposes of paragraph (5)(b), treat any *NRAS rent retained by the first *member under the *arrangements as management fees or commission as having been passed on to the other member.


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