INCOME TAX ASSESSMENT ACT 1997
For a *revenue asset:
(a) disposing of, ceasing to own, or otherwise realising, the asset is a realisation event ; and
(b) a loss is realised for income tax purposes by the *realisation event if, and only if, there is a loss on the event; and
(c) a gain is realised for income tax purposes by the realisation event if, and only if, there is a profit on the event; and
(d) the loss or profit on the event is the loss or gain realised for income tax purposes; and
(e) if a provision of this Act reduces the loss or gain that would, apart from that provision, be realised for income tax purposes by the event, the loss or profit to be taken into account in calculating your assessable income or *tax loss is reduced by the same amount.
[ CCH Note: Div 980 will be inserted by No 34 of 2019, s 3 and Sch 5 item 1, effective 1 July 2019 and applicable in relation to tenancies starting before, at or after 1 January 2018. However, the provisions do not commence at all if Schedule 3 to the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 2) Act 2019 commences at or before that time. Div 980 will read:
Division 980 - Affordable housingSECTION 980-1 What this Division is about
A dwelling is used to provide affordable housing if certain conditions are met, including that the dwelling is tenanted or available to be tenanted, and that tenancies of the dwelling are exclusively managed by a community housing provider.
Subdivision 980-A - Providing affordable housingOperative provisions SECTION 980-5 Providing affordable housing
A *dwelling is used to provide affordable housing on a particular day (the test day ) if:
(a) on the test day, the dwelling is *taxable Australian real property and is *residential premises that:
(i) are tenanted or available to be tenanted; and
(ii) are not *commercial residential premises; and
(b) on the test day, the tenancy or prospective tenancy of the dwelling is exclusively managed by an *eligible community housing provider; and
(c) the eligible community housing provider has given each entity that holds an *ownership interest in the dwelling a certificate under section 980-15 that covers the dwelling for the test day; and
(d) no entity is entitled to receive an incentive, under the Scheme prescribed for the purposes of Part 2 of the National Rental Affordability Scheme Act 2008 , for the dwelling for the NRAS year (within the meaning of that Scheme) that includes the test day; and
(e) in the case of a *managed investment trust holding an *ownership interest in the dwelling on the test day - none of the tenants or occupants of the dwelling on that day holds an interest in the trust that passes the *non-portfolio interest test at any time during that day. SECTION 980-10 Eligible community housing providers
An eligible community housing provider is:
(a) an entity registered (however described) under an *Australian law as a provider of community housing services; or
(b) an entity registered (however described) by an *Australian government agency as a provider of community housing services.
However, an entity that ceases to be covered by subsection (1) continues to be an eligible community housing provider for the 90-day period starting on the day of the cessation. SECTION 980-15 Affordable housing certificates
For the purposes of paragraph 980-5(c) , a certificate must:
(a) include a declaration that the *eligible community housing provider reasonably believes paragraphs 980-5(a) and (b) to be satisfied for the *dwelling for the test day; and
(b) be given in the *approved form on or before the 31st day after the end of the income year that contains the test day.