Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-10 - PAY AS YOU GO (PAYG) INSTALMENTS  

Division 45 - Instalment payments  

Subdivision 45-J - How Commissioner works out your instalment rate and notional tax  

SECTION 45-330   WORKING OUT YOUR ADJUSTED TAXABLE INCOME  

45-330(1)  
Your adjusted taxable income for the *base year is your total assessable income for the *base assessment, reduced by:


(a) any *net capital gain included in that assessable income; and


(b) your deductions for the base year (except *tax losses), as used in making that assessment; and


(c) the amount of any tax loss, to the extent that it is *unutilised at the end of the base year.

Exception: superannuation entities and net capital gains

45-330(2)  
Paragraph (1)(a) does not apply in the case of:


(a) a *complying approved deposit fund or a *non-complying approved deposit fund for the *base year; or


(b) a *complying superannuation fund or a *non-complying superannuation fund for that year; or


(c) a *pooled superannuation trust for that year.


(d) (Repealed by No 70 of 2015)

Special rule for some entities

45-330(2A)  


If an entity:


(a) has *tax losses transferred to it under Subdivision 707-A of the Income Tax Assessment Act 1997 ; or


(b) is a *corporate tax entity at any time during the *base year;

the adjusted taxable income of the entity for the base year is worked out under subsection (1) as if paragraph (1)(c) were replaced by the following provision:


(c) the lesser of the following amounts:


(i) the amount of any tax loss, to the extent that it is *unutilised at the end of the base year;

(ii) the amount of the deductions for tax losses used in making your *base assessment.
Amounts assessable under Subdivision 250-E of the Income Tax Assessment Act 1997

45-330(2AA)  


To avoid doubt, paragraph (1)(a) does not apply to a *net capital gain that is included in your assessable income under Subdivision 250-E of the Income Tax Assessment Act 1997 . Special rule for life insurance companies

45-330(3)  


The adjusted taxable income of a *life insurance company for the *base year is worked out as follows: Method statement

Step 1.

Recalculate the taxable income of the *ordinary class for the *base assessment on the basis that it did not include any *net capital gain.


Step 2.

Add to the step 1 result the deductions for *tax losses of the *ordinary class that were used in making the *base assessment.


Step 3.

Reduce the step 2 result by the lesser of the following amounts:

  • (a) the amount of any *tax losses of the *ordinary class, to the extent that they are *unutilised at the end of the *base year;
  • (b) deductions for tax losses of the ordinary class that were used in making the *base assessment.

  • Step 4.

    Add to the step 3 result the taxable income of the *complying superannuation class for the *base assessment.


    Step 5.

    Add to the step 4 result the deductions for *tax losses of the *complying superannuation class that were used in making the *base assessment.


    Step 6.

    Reduce the step 5 result by the lesser of the following amounts:

  • (a) the amount of any *tax losses of the *complying superannuation class, to the extent that they are *unutilised at the end of the *base year;
  • (b) deductions for tax losses of the complying superannuation class that were used in making the *base assessment.
  • The result of this step is the adjusted taxable income of the company for the *base year.

    45-330(4)  
    (Repealed by No 142 of 2003)

    45-330(5)  
    (Repealed by No 142 of 2003)




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