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 6 Impairments and reversals
Income Tax Assessment Act 1997
28 After section 230-170
230-172 Applying accruals method to loss resulting from impairment
(1) This section applies if:
(a) there is an impairment (within the meaning of the *accounting principles) of:
(i) a *financial arrangement; or
(ii) a financial asset or financial liability that forms part of a financial arrangement; and
(b) you make a loss from the financial arrangement as a result of the impairment; and
(c) the accruals method applies to the loss.
(2) You cannot deduct a loss you make for an income year under section 230-15, to the extent that the loss results from the impairment (including as affected by any later reversal of the impairment loss (within the meaning of the *accounting principles) that resulted from the impairment).
(3) Disregard subsection (2) for the purposes of paragraph (c) of step 1 of the method statement in subsection 230-445(1).