INCOME TAX ASSESSMENT ACT 1936
The trust ' s net income for the income year is worked out as follows. 268-45(2)
Add up the notional net incomes (if any) worked out under section 268-30 or 268-70.
A notional loss for a period is not taken into account, but counts towards the trust ' s tax loss for the income year.268-45(3)
Add the full year amounts referred to in subsection 268-40 (7) (if any). 268-45(4)
Subtract the trust ' s full-year deductions of these kinds:
(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 ;
(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;
unless they exceed the total of the notional net incomes and the full year amounts. (If they equal or exceed that total, the trust does not have a net income for the income year.)
If an amount remains, subtract from it the trust ' s other full year deductions, in the order shown in subsection 268-35 (5), unless they exceed the amount remaining. (If they equal or exceed that amount, the trust does not have a net income for the income year.) 268-45(6)
The amount (if any) remaining is the trust ' s net income for the income year.
S 268-50 and 268-55 repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 196, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .