Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013 (85 of 2013)
Schedule 8 Taxation of financial arrangements
Part 2 Accruals/realisation methods
Division 5 Re-estimations
Income Tax Assessment Act 1997
26 After subsection 230-190(3)
(3A) You also re-estimate a gain or loss from a *financial arrangement under subsection (5) if:
(a) the gain or loss is spread using the method referred to in paragraph 230-135(2)(b) in accordance with section 230-140 (effective interest method); and
(b) you recalculate the effective interest rate in accordance with that method; and
(c) the terms and conditions of the arrangement provide for reset dates to occur no more than 12 months apart; and
(d) the maximum life of the arrangement (as determined under the terms and conditions of the arrangement) is more than 12 months.
(3B) You must re-estimate the gain or loss at the relevant reset date if subsection (3A) applies.