Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 25 - Some amounts you can deduct  

Operative provisions  

SECTION 25-120   Transitional - deduction for payment of rent from land investment by operating entity to asset entity  

25-120(1)    
This section applies if the requirements in subsection 12-440(1) or (2) in Schedule 1 to the Taxation Administration Act 1953 are satisfied in relation to a * cross staple arrangement.

25-120(2)    
An entity that is an * operating entity in relation to the * cross staple arrangement can deduct, for an income year, an amount of * rent from land investment if:

(a) another entity derives or receives the amount from the operating entity at a time that:

(i) is in the income year; and

(ii) is on or after 27 March 2018; and

(iii) meets the requirements in subsection 12-440(4) of Schedule 1 to the Taxation Administration Act 1953 ; and

(b) the other entity is an * asset entity in relation to the cross staple arrangement; and

(c) apart from this subsection, the operating entity could otherwise deduct the amount under this Act; and

(d) the amount is * excepted MIT CSA income of the asset entity for the income year.

25-120(3)    
If the * asset entity is not a * managed investment trust in relation to the income year, for the purposes of paragraph (2)(d), treat it as a managed investment trust in relation to the income year.