Income Tax Assessment Act 1936
The trust ' s deductions for the income year are attributed to periods in the income year as follows. 268-35(2)
The following deductions are attributed to each period in proportion to the length of the period:
(a) (Repealed by No 101 of 2006 )
(aa) deductions for the decline in value of a depreciating asset;
See Division 40 of the Income Tax Assessment Act 1997 .
(b) (Repealed by No 101 of 2006 )
(c) deductions for expenditure, deductions for which are spread over 2 or more years, but not full year deductions (see subsection (5));
(d) deductions for expenditure of capital monies in connection with an Australian film.
See former section 124ZAFA .
All other deductions (except full year deductions) are attributed to periods as if each period were an income year. 268-35(4)
Full year deductions are not attributed to any of the periods. They are brought in at a later stage of the process of calculating the trust ' s net income for the income year. 268-35(5)
These are full year deductions :
(a) deductions for bad debts under section 8-1 (about general deductions) of the Income Tax Assessment Act 1997 ;
(b) deductions for bad debts or under section 25-35 (about bad debts) of the Income Tax Assessment Act 1997 , or for losses on debt/equity swaps under section 63E ;
(c) deductions, so far as they are allowable under Division 8 (which is about deductions) of the Income Tax Assessment Act 1997 , because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III applies to the trust in relation to the income year;
(d) deductions allowable under Division 30 of the Income Tax Assessment Act 1997 ;
(e) deductions for payments of pensions, gratuities or retiring allowances under section 25-50 of the Income Tax Assessment Act 1997 ;
(f) deductions for tax losses of earlier income years;
See Division 36 of the Income Tax Assessment Act 1997 .
(g) - (h) (Omitted by No 169 of 1999)
(i) (Repealed by No 101 of 2006 )
(j) deductions for farm management deposits.
See Division 393 of the Income Tax Assessment Act 1997 .
However, a deduction for the balance of capital expenditure is not a full year deduction if the deduction results from the disposal, loss, lapse, termination of use or destruction of the property.
See Subdivision 40-D of the Income Tax Assessment Act 1997 .