Income Tax Assessment Act 1997
Work out your taxable income for the income year like this:
|Taxable income = Assessable income - Deductions|
Add up all your assessable income for the income year.
To find out about your assessable income, see Division 6 .
Add up your deductions for the income year.
To find out what you can deduct, see Division 8 .
Subtract your deductions from your assessable income (unless they exceed it). The result is your taxable income. (If the deductions equal or exceed the assessable income, you don ' t have a taxable income.)
If the deductions exceed the assessable income, you may have a tax loss which you may be able to utilise in that or a later income year: see Division 36 .
There are cases where taxable income is worked out in a special way:
|Item||For this case ...||See:|
|1.||A company does not maintain continuity of ownership and control during the income year and does not satisfy the business continuity test||Subdivision 165-B|
|1A.||(Repealed by No 80 of 2007 )|
|1B.||An entity is a *member of a *consolidated group at any time in the income year||Part 3-90|
|2.||A company becomes a PDF (pooled development fund) during the income year, and the PDF component for the income year is a nil amount||section 124ZTA of the Income Tax Assessment Act 1936|
|3.||A shipowner or charterer:
• has its principal place of business outside Australia; and
|section 129 of the Income Tax Assessment Act 1936|
|• carries passengers, freight or mail shipped in Australia|
|4.||An insurer who is a foreign resident enters into insurance contracts connected with Australia||sections 142 and 143 of the Income Tax Assessment Act 1936|
|5.||The Commissioner makes a default or special assessment of taxable income||sections 167 and 168 of the Income Tax Assessment Act 1936|
|6.||The Commissioner makes a determination of the amount of taxable income to prevent double taxation in certain treaty cases||section 24 of the International Tax Agreements Act 1953|
A life insurance company can have a taxable income of the complying superannuation class and/or a taxable income of the ordinary class for the purposes of working out its income tax for an income year: see Subdivision 320-D .
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