Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 268 - How to work out a trust ' s net income and tax loss for the income year  

Subdivision 268-C - Other steps in working out the net income and tax loss  

SECTION 268-35   HOW TO ATTRIBUTE DEDUCTIONS TO PERIODS  

268-35(1)  
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(a) (Repealed by No 101 of 2006 )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(b) (Repealed by No 101 of 2006 )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 .

268-35(3)  
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 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(i) (Repealed by No 101 of 2006 )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.

Note:

See Division 393 of the Income Tax Assessment Act 1997 .

268-35(6)  
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 .