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 380-30   Share of NRAS rent  

Object of section

380-30(1)  
The object of this section is to ensure that:


(a) *NRAS rent derived by a partnership or the trustee of a trust is allocated notionally amongst entities who *derive benefits from that NRAS rent; and


(b) that allocation corresponds with the way in which those benefits were derived.

380-30(2)  
An entity ' s share of *NRAS rent is an amount notionally allocated to the entity as its share of the NRAS rent, whether or not the entity actually receives any of that NRAS rent.

380-30(3)  
That amount is equal to the entity ' s share of the *NRAS rent as the focal entity in column 3 of an item of the table.

Note:

An entity ' s share of the NRAS rent is based on the share of the NRAS rent of each preceding intermediary entity through which the NRAS rent flows, starting from the intermediary entity to whom the NRAS rent is paid.

This means that in some cases (see items 2 and 4 of the table), more than one item of the table will need to be applied to work out the share of the NRAS rent of an ultimate recipient of the NRAS rent.


Share of NRAS rent
Item Column 1 Column 2 Column 3
For this intermediary entity and this focal entity: The intermediary entity ' s share of the NRAS rent is: The focal entity ' s share of the NRAS rent is:
1 a partnership is the intermediary entity and a partner in that partnership is the focal entity if:
(a) * NRAS rent is * derived by the partnership; and
(b) the partner has, in respect of the partnership, an individual interest mentioned in subsection 380-25(2)
the NRAS rent so much of the NRAS rent as is taken into account in working out the amount of that individual interest
2 a partnership is the intermediary entity and a partner in that partnership is the focal entity if:
(a) * NRAS rent * flows indirectly to the partnership as a beneficiary of a trust; and
(b) the partner has, in respect of the partnership, an individual interest mentioned in subsection 380-25(2)
the amount worked out under column 3 of item 3 or 4 of this table where the partnership, as a beneficiary, is the focal entity in that item so much of the amount worked out under column 2 of this item as is attributable to the partner, having regard to the partnership agreement and any other relevant circumstances
3 the trustee of a trust is the intermediary entity and the trustee or a beneficiary of the trust is the focal entity if:
(a) * NRAS rent is * derived by the trustee; and
(b) the trustee or beneficiary has, in respect of the trust, a share amount mentioned in subsection 380-25(3) or (4)
(a) if the trust has a positive amount of * net income for that year - the NRAS rent; or
(b) otherwise - nil
so much of the amount worked out under column 2 of this item as is taken into account in working out that share amount
4 the trustee of a trust is the intermediary entity and the trustee or a beneficiary of the trust is the focal entity if:
(a) * NRAS rent * flows indirectly to the trustee as a partner in a partnership or as a beneficiary of another trust; and
(b) the trustee or beneficiary has, in respect of the trust, a share amount mentioned in subsection 380-25(3) or (4)
the amount worked out under column 3 of:
(a) item 1 or 2 of this table where the trustee, as a partner, is the focal entity in that item; or
(b) item 3 or a previous application of this item where the trustee, as a beneficiary, is the focal entity in that item
so much of the amount worked out under column 2 of this item as is attributable to the focal entity in this item, having regard to the trust deed and any other relevant circumstances

Note:

In item 3 or 4 of the table, the trustee of a trust can be both the intermediary entity and the focal entity in the same item.


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