Income Tax Assessment Act 1997
These all form part of this Act:
950-100(2)
The asterisks used to identify defined terms form part of this Act. However, if a term is not identified by an asterisk, disregard that fact in deciding whether or not to apply to that term a definition or other interpretation provision.
SECTION 950-105 950-105 What does not form part of this Act
These do not form part of this Act:
A Guide consists of:
(a) sections under a heading indicating that what follows is a Guide to a particular Subdivision, Division etc.; or
(b) a Subdivision, Division or Part that is identified as a Guide by a provision in the Subdivision, Division or Part.
Hide history note950-150(2)
Guides form part of this Act, but they are kept separate from the operative provisions. In interpreting an operative provision, a Guide may only be considered:
(a) in determining the purpose or object underlying the provision; or
(b) to confirm that the provision's meaning is the ordinary meaning conveyed by its text, taking into account its context in the Act and the purpose or object underlying the provision; or
(c) in determining the provision's meaning if the provision is ambiguous or obscure; or
(d) in determining the provision's meaning if the ordinary meaning conveyed by its text, taking into account its context in the Act and the purpose or object underlying the provision, leads to a result that is manifestly absurd or is unreasonable.
Division 960 - General Subdivision 960-B - Utilisation of tax attributes
None of the following can be * utilised, to the extent it has already been utilised:
(a) a * tax loss;
(b) a * net capital loss;
(c) * net exempt income.
Utilisation of losses
960-20(2)
A * tax loss is utilised to the extent that:
(a) it is deducted from an amount of assessable income or * net exempt income; or
(b) it is reduced by applying a * total net forgiven amount; or
(c) it is *carried back.
960-20(3)
A * net capital loss is utilised to the extent that:
(a) it is applied to reduce an amount of * capital gains; or
(b) it is reduced by applying a * total net forgiven amount.
Utilisation of net exempt income
960-20(4)
* Net exempt income for an income year is utilised to the extent that:
(a) it is subtracted:
(i) from deductions; or
in determining a * tax loss for the income year; or
(ii) under subsection 268-60(4) in Schedule 2F to the Income Tax Assessment Act 1936 or subsection 165-70(4) or 175-35(4) of this Act;
(b) because of it, the extent to which a tax loss can be deducted in that income year is reduced; or
(c) because of it, an amount is reduced under subsection 35-15(2) (about deferral of deductions from non-commercial business activities); or
(d) because of it, a quarantined amount is reduced under subsection 26-47(8) ; or
(e) it is reduced under subsection 65-35(3) because of a * tax offset carried forward; or
(f) because of it, an amount is reduced under step 2 of the method statement in subsection 160-10(2) (which is a step in calculating a loss carry back tax offset component).
The objects of this Subdivision are as follows:
(a) to set out a basic rule requiring an amount in a *foreign currency to be translated into an Australian dollar amount (the basic rule is subject to the functional currency rules in Subdivision 960-D and to certain specific exclusions);
(b) to ensure that the rules for identifying the exchange rate for the translation of a foreign currency amount into Australian dollars:
(i) reflect an appropriate prevailing exchange rate; and
(ii) take into account, as appropriate, commercial practices for the translation of foreign currency amounts into Australian dollars.
For the purposes of this Act, an amount in a *foreign currency is to be translated into Australian currency.
Examples of an amount
960-50(2)
The following are examples of an amount: (a) an amount of *ordinary income; (b) an amount of an expense; (c) an amount of an obligation; (d) an amount of a liability; (e) an amount of a receipt; (f) an amount of a payment; (g) an amount of consideration; (h) a value.
960-50(3)
The amounts set out in paragraphs (2)(b) to (h) may be amounts on revenue account, capital account or otherwise.
Amounts that are elements in the calculation of other amounts
960-50(4)
In applying this section: (a) first, translate any amounts that are elements in the calculation of other amounts (except *special accrual amounts); and (b) then, calculate the other amounts.
Special accrual amounts
960-50(5)
In applying this section: (a) calculate a *special accrual amount without translation; and (b) then, translate the special accrual amount.
Special translation rules
960-50(6)
The table has effect:
| Special translation rules | ||
| Item | In this case... | this is the result... |
| 1 | forex realisation event 4 happens when you cease to have an obligation, or a part of an obligation, to pay *foreign currency, and neither of subparagraphs 775-55(1)(b)(ii) and (iii) applies | for the purposes of section 775-55, the amount of the obligation, or the part of the obligation, at the tax recognition time (see subsection 775-55(7)) is to be translated to Australian currency at the exchange rate applicable at that time. |
| 2 | cost of a *depreciating asset | (a) if you incur an obligation in return for your starting to hold the asset, and the obligation is not satisfied before you begin to hold the asset (worked out under Division 40) - the cost of the asset is to be translated to Australian currency at the exchange rate applicable when you begin to hold the asset; or |
| (b) if you incur an obligation in return for your starting to hold the asset, and the obligation is satisfied before you begin to hold the asset (worked out under Division 40) - the cost of the asset is to be translated to Australian currency at the exchange rate applicable when the obligation is satisfied. | ||
| 3 | value of an item of *trading stock on hand at the end of an income year, where you have elected to use its *cost | the value is to be translated to Australian currency at the exchange rate applicable at the time when the item became on hand. |
| 4 | value of an item of *trading stock on hand at the end of an income year, where you have elected to use: | the value is to be translated to Australian currency at the exchange rate applicable at the end of the income year. |
| (a) its market selling value; or | ||
| (b) its replacement value | ||
| 5 | a transaction or event that:
(a) involves an amount of money or the *market value of other property; and (b) is relevant for the purposes of Part 3-1 or 3-3; to the extent to which the amount or value is relevant for the purposes of Part 3-1 or 3-3 |
the amount or value is to be translated, for the purposes of Part 3-1 or 3-3, to Australian currency at the exchange rate applicable at the time of the transaction or event. |
| 6 | an amount of *ordinary income | (a) if the amount is received at or before the time when it is *derived - the amount is to be translated to Australian currency at the exchange rate applicable at the time of receipt; or |
| (b) in any other case - the amount is to be translated to Australian currency at the exchange rate applicable when it is derived. | ||
| 7 | an amount of *statutory income (other than an amount included in assessable income under Division 102) | (a) if the amount is received at or before the time when the requirement first arose to include it in your assessable income - the amount is to be translated to Australian currency at the exchange rate applicable at the time of receipt; or |
| (b) in any other case - the amount is to be translated to Australian currency at the exchange rate applicable at the time when the requirement first arose to include it in your assessable income. | ||
| 8 | an amount that you deduct (other than under Division 40) | (a) if the amount is paid at or before the time when it became deductible - the amount is to be translated to Australian currency at the exchange rate applicable at the time of payment; or |
| (b) in any other case - the amount is to be translated to Australian currency at the exchange rate applicable at the time when it became deductible. | ||
| 9 | an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company ' s *production expenditure on a *film; or (b) the total of the company ' s *qualifying Australian production expenditure on a film; or (c) the company ' s *total film expenditure on a film; to the extent to which the amountis relevant for the purposes of issuing a certificate under section 376-20 or 376-65 |
the amount is to be translated to Australian currency at the exchange rate applicable at the time when principal photography commences or production of the animated image commences. |
| 9A | an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company ' s *production expenditure on a *film; or (b) the total of the company ' s *qualifying Australian production expenditure on a film; to the extent to which the amount is relevant for the purposes of issuing a certificate under section 376-45 |
the amount is to be translated to Australian currency at the exchange rate applicable when *post, digital and visual effects production for the film commences. |
| 9B | subject to item 9C, an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company ' s *production expenditure on a *film; or (b) the total of the company ' s *qualifying Australian production expenditure on a film; or (c) the company ' s *total film expenditure on a film; to the extent to which the amount is relevant for the purposes of calculating an amount of a *tax offset under section 376-15, 376-40 or 376-60 |
the amount is to be translated to Australian currency at the average of the exchange rates applicable from time to time during the period that qualifying Australian production expenditure is incurred on the film. |
| 9C | an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company ' s *production expenditure on a *film; or (b) the total of the company ' s *qualifying Australian production expenditure on a film; or (c) the company ' s *total film expenditure on a film; to the extent to which the total of the company ' s qualifying Australian production expenditure on a film is less than $15 million and the amount is relevant for the purposes of calculating an amount of a *tax offset under section 376-60 |
the amount is to be translated to Australian currency at the exchange rate applicable at the time when expenditure is incurred on the film |
| 9D | an amount that is relevant for the purposes of quantifying a company
'
s *qualifying Australian development expenditure on a *digital game incurred in *completing the game to the extent to which the amount is relevant for the purposes of:
(a) a certificate under subsection 378-25(1) (completion certificate) in relation to the game; or (b) a determination under section 378-30 in relation to such a certificate |
the amount is to be translated to Australian currency at the average of the exchange rates applicable from time to time during the period:
(a) starting at the earliest time that the company incurred *development expenditure on the game in *completing the game; and (b) ending at the earlier of: (i) the last time the company incurred development expenditure on the game in completing the game; and (ii) the time the company applies for the issue of a certificate under section 378-25(1) (completion certificate) in relation to the game. |
| 9E | an amount that is relevant for the purposes of quantifying a company
'
s *qualifying Australian development expenditure on a *digital game incurred in *porting the game to the extent to which the amount is relevant for the purposes of:
(a) a certificate under section 378-25(3) (porting certificate) in relation to the game; or (b) a determination under section 378-30 in relation to such a certificate |
the amount is to be translated to Australian currency at the average of the exchange rates applicable from time to time during the period:
(a) starting at the earliest time that the company incurred *development expenditure on the game in *porting the game; and (b) ending at the earlier of: (i) the last time the company incurred development expenditure on the game in porting the game; and (ii) the time the company applies for the issue of a certificate under subsection 378-25(3) (porting certificate) in relation to the game. |
| 9F | an amount that is relevant for the purposes of quantifying a company
'
s *qualifying Australian development expenditure on a *digital game or games incurred in an income year on the *ongoing development of the games in the income year to the extent to which the amount is relevant for the purposes of:
(a) a certificate under subsection 378-20(5) (ongoing development certificate) in relation to the games for the income year; or (b) a determination under section 378-30 in relation to such a certificate |
the amount is to be translated to Australian currency at the average of the exchange rates applicable from time to time during the period:
(a) starting at the earliest time that the company incurred *development expenditure on the games in the income year on the *ongoing development of the games in the income year; and (b) ending at the earlier of: (i) the last time the company incurred development expenditure on the games in the income year on the ongoing development of the games in the income year; and (ii) the time the company applies for the issue of certificate under subsection 378-25(5) (ongoing development certificate) in relation to the games for the income year. |
| 10 | an amount that Division 12 of Part 2.5 in Schedule 1 to the Taxation Administration Act 1953 requires to be withheld from a payment | the amount is to be translated to Australian currency at the exchange rate applicable at the time when the amount is required to be withheld under that Division. |
| 11 | an amount of a receipt or a payment, where none of the above items apply | the amount is to be translated to Australian currency at the exchange rate applicable at the time of the receipt or payment. |
960-50(7)
Subsection (6) has effect subject to any modifications made by the regulations.
[ CCH Note: Regulation 960-50.01 and Sch 2 of the Income Tax Assessment Regulations modify the table by inserting item 12, which provides an alternative to the translation rules in the other items of the table.]
960-50(7A)
Despite subsections (6) and (7) , an amount that is relevant for the purposes of quantifying, for the purposes of section 960-565 , the *annual global income of an entity as shown in *global financial statements for the entity is to be translated into Australian currency at the average exchange rate applicable for the period for which the statements are prepared.
960-50(7B)
For the purposes of subsection (7A) : (a) the entity must obtain:
(i) all of the exchange rates that it will use to work out the average exchange rate; or
from one or more sources that are not *associates of the entity, and not the entity itself, or from one or more sources specified by the Commissioner in a notice to the entity; and (b) the entity must use the average exchange rate so worked out in translating into Australian currency any amount referred to in that subsection that is relevant to that period.
(ii) an average exchange rate that has been worked out for the period referred to in that subsection;
960-50(7C)
A notice under paragraph (7B)(a) is not a legislative instrument.
Regulations about translation
960-50(8)
An entity must comply with the regulations (if any) in translating an amount into Australian currency.
Note:
For example, the regulations could require the use of a particular translation method and require consistency in the use of the translation method.
960-50(9)
Regulations made for the purposes of subsection (8) may make provision in relation to a matter by applying, adopting or incorporating (with or without modifications) matter contained in any of the *accounting standards: (a) as in force or existing at a particular time; or (b) as in force or existing from time to time.
960-50(9A)
Regulations made for the purposes of subsection (8) do not apply to translating an amount into Australian currency under subsection (7A) , unless they provide otherwise.
Operation of certain provisions unaffected
960-50(10)
This section does not affect the operation of the following provisions: (aa) section 220-110 (*maximum franking credit); (a) section 775-210 (notional loans under *facility agreements); (b) Subdivision 960-D (functional currency); (c) subsection 974-35(6) (valuation of financial benefits for the purposes of the debt/equity provisions).
(d) (Repealed by No 114 of 2010)
Section 960-50 applies to:
(a) a transaction, event or thing that:
(i) involves an amount in a *foreign currency; and
(ii) occurs on or after the applicable commencement date (within the meaning of Division 775 ); or
(b) a transaction, event or thing that:
(i) involves an amount in a foreign currency; and
to the extent to which the transaction, event or thing is relevant for the purposes of Division 775 ; or
(ii) occurs before the applicable commencement date (within the meaning of Division 775 );
(c) an amount that Division 12 of Part 2-5 in Schedule 1 to the Taxation Administration Act 1953 requires to be withheld from a payment, if the time when the amount is required to be withheld occurs on or after 1 July 2003; or
(d) a payment that Part 5-30 in Schedule 1 to the Taxation Administration Act 1953 requires to be reported, if the amount is paid on or after 1 July 2003.
Note:
For applicable commencement date , see section 775-155 .
Exceptions
960-55(2)
Despite subsection (1), section 960-50 does not apply to a transaction, event or thing that involves:
(a) an amount covered by subsection 775-165(1) ; or
(b) a right, or a part of a right, covered by subsection 775-165(2) ; or
(c) an obligation, or a part of an obligation, covered by subsection 775-165(4) .
Note:
Subsections 775-165(1) , (2) and (4) are transitional provisions relating to forex realisation events.
960-55(3)
(Repealed by No 15 of 2009 )
960-55(4)
(Repealed by No 15 of 2009 )
The net income of any of the following entities (or parts of entities) that keeps its accounts solely or predominantly in a particular foreign currency can be worked out in that currency, with the net amount being translated into Australian currency:
SECTION 960-59 960-59 Object of this Subdivision
The object of this Subdivision is, for the purposes of reducing compliance costs and reflecting commercial practice, to allow certain entities (or parts of entities) whose accounts are kept solely or predominantly in a particular *foreign currency (the functional currency ) to calculate their net incomes by reference to the functional currency.
The table has effect:
| Choosing to use a functional currency | |||
| Item | If you are: | you may choose to use the * applicable functional currency to... | with effect from the start of... |
| 1 | an Australian resident who is required to prepare financial reports under section 292 of the Corporations Act 2001 | work out so much of your taxable income or tax loss as is not subject to a choice made by you under any of the other items of this table | (a) if the choice you make under this item is a backdated startup choice (see section 960-65)
-
the income year in which you make the choice; or
(b) in any other case - the income year following the one in which you make the choice. |
| 2 | (a) an Australian resident carrying on an activity or business at or through an *overseas permanent establishment; or
(b) a foreign resident carrying on an activity or business at or through an *Australian permanent establishment |
work out the taxable income or tax loss derived from the activity or business carried on at or through the permanent establishment | (a) if the choice you make under this item is a backdated startup choice (see section 960-65)
-
the income year in which you make the choice; or
(b) in any other case - the income year following the one in which you make the choice. |
| 3 | an *offshore banking unit | work out your total assessable OB income (within the meaning of Division 9A of Part III of the Income Act Assessment Act 1936 ) and your total allowable OB deductions (within the meaning of that Division) | (a) if the choice you make under this item is a backdated startup choice (see section 960-65)
-
the income year in which you make the choice; or
(b) in any other case - the income year following the one in which you make the choice. |
| 4 | an attributable taxpayer (within the meaning of Part X of the Income Tax Assessment Act 1936 ) of a *controlled foreign company (CFC) | work out the *attributable income of the CFC | (a) if the choice you make under this item is a backdated startup choice (see section 960-65) - the CFC ' s *statutory accounting period in which you make the choice; or |
| (b) in any other case - the CFC ' s statutory accounting period following the one in which you make the choice. | |||
| 5 | a *transferor trust | work out your attributable income (within the meaning of Division 6AAA of Part III of the Income Tax Assessment Act 1936 ) | (a) if the choice you make under this item is a backdated startup choice (see section 960-65)
-
the income year in which you make the choice; or
(b) in any other case - the income year following the one in which you make the choice. |
Note:
The attributable income of a controlled foreign company is calculated separately for each attributable taxpayer - see section 381 of the Income Tax Assessment Act 1936 .
960-60(2)
A choice must be in writing.
960-60(3)
A choice under item 1 of the table in subsection (1) continues in effect until:
(a) a withdrawal of the choice takes effect (see section 960-90 ); or
(b) immediately after the end of the income year in which you cease to be subject to a requirement to prepare financial reports under section 292 of the Corporations Act 2001 ;
whichever happens first.
960-60(4)
A choice under item 2, 3, 4 or 5 of the table in subsection (1) continues in effect until a withdrawal of the choice takes effect (see section 960-90 ).
960-60(5)
(Repealed by No 15 of 2009 )
960-60(6)
(Repealed by No 15 of 2009 )
Subsection (2) applies if:
(a) you are a foreign resident; and
(b) a *CGT event happens in relation to a *CGT asset that is an *indirect Australian real property interest for you; and
(c) the sole or predominant currency in which you keep your accounts at the time of the CGT event is a currency other than Australian currency.
960-61(2)
You must use the *applicable functional currency to work out the amount of your *capital gain or *capital loss (if any).
The table has effect:
| Backdated startup choice | ||
| Item | In this case: | the choice is a backdated startup choice if... |
| 1 | you make a choice under item 1 of the table in subsection 960-60(1) | (a) both:
(i) you were in existence at the start of the income year in which you made the choice; and |
| (ii) you make the choice within 90 days after the beginning of that income year or within 30 days after the commencement of this section; or | ||
| (b) both: | ||
| (i) you came into existence during the income year in which you made the choice; and | ||
| (ii) you make the choice within 90 days after you came into existence or within 30 days after the commencement of this section. | ||
| 2 | you make a choice under item 2 of the table in subsection 960-60(1) | (a) both:
(i) the permanent establishment was in existence at the start of the income year in which you made the choice; and |
| (ii) you make the choice within 90 days after the beginning of that income year or within 30 days after the commencement of this section; or | ||
| (b) both: | ||
| (i) the permanent establishment came into existence during the income year in which you made the choice; and | ||
| (ii) you make the choice within 90 days after the permanent establishment came into existence or within 30 days after the commencement of this section. | ||
| 3 | you make a choice under item 3 of the table in subsection 960-60(1) | (a) both:
(i) the *offshore banking unit was in existence at the start of the income year in which you made the choice; and |
| (ii) you make the choice within 90 days after the beginning of that income year or within 30 days after the commencement of this section; or | ||
| (b) both: | ||
| (i) the offshore banking unit came into existence during the income year in which you made the choice; and | ||
| (ii) you make the choice within 90 days after the offshore banking unit came into existence or within 30 days after the commencement of this section. | ||
| 4 | you make a choice under item 4 of the table in subsection 960-60(1) | (a) both:
(i) you are an attributable taxpayer of the CFC at the beginning of the CFC's *statutory accounting period in which you made the choice; and |
| (ii) you make the choice within 90 days after the beginning of the CFC's statutory accounting period or within 30 days after the commencement of this section; or | ||
| (b) both: | ||
| (i) you became an attributable taxpayer in relation to the CFC during the CFC's statutory accounting period during which you made the choice; and | ||
| (ii) you make the choice within 90 days after the beginning of the CFC's statutory accounting period or within 30 days after the commencement of this section. | ||
| 5 | you make a choice under item 5 of the table in subsection 960-60(1) | you make the choice within 90 days after the beginning of an income year or within 30 days after the commencement of this section. |
Australian resident required to prepare financial reports under section 292 of the Corporations Act 2001
960-70(1)
If you make a choice under item 1 of the table in subsection 960-60(1) with effect from the start of a particular income year, your applicable functional currency for:
(a) that income year; and
(b) each later income year for which the choice is in effect;
is the sole or predominant *foreign currency in which you kept your accounts at the time when you made the choice.
Permanent establishment, offshore banking unit or transferor trust
960-70(2)
If you make a choice under item 2, 3 or 5 of the table in subsection 960-60(1) in relation to a *permanent establishment, an *offshore banking unit or a *transferor trust with effect from the start of a particular income year, the applicable functional currency of the establishment, unit or trust for:
(a) that income year; and
(b) each later income year for which the choice is in effect;
is the sole or predominant *foreign currency in which the establishment, unit or trust kept its accounts at the time when you made the choice.
Controlled foreign company
960-70(3)
If you make a choice under item 4 of the table in subsection 960-60(1) in relation to a *controlled foreign company (CFC) with effect from the start of a particular *statutory accounting period, the applicable functional currency of the CFC for:
(a) that statutory accounting period; and
(b) each later statutory accounting period for which the choice is in effect;
is the sole or predominant *foreign currency in which the CFC kept its accounts at the time when you made the choice.
Note:
The attributable income of a controlled foreign company is calculated separately for each attributable taxpayer - see section 381 of the Income Tax Assessment Act 1936 .
Calculating capital gains and losses on indirect Australian real property interests
960-70(3A)
If subsection 960-61(2) applies, your applicable functional currency for the purposes of that subsection is the sole or predominant currency in which you keep your accounts at the time of the *CGT event.
Accounts
960-70(4)
For the purposes of this section, accounts means:
(a) ledgers; and
(b) journals; and
(c) statements of financial performance; and
(d) profit and loss accounts; and
(e) balance-sheets; and
(f) statements of financial position;
and includes statements, reports and notes attached to, or intended to be read with, any of the foregoing.
A transferor trust is a trust where, having regard to all relevant circumstances, it would be reasonable to conclude that another entity is, or is likely to be, an attributable taxpayer in relation to the trust for the purposes of Division 6AAA of Part
The table has effect:
| Translation rules | ||||||
| Item | In this case... | these rules apply... | ||||
| 1 | (a) | you are an Australian resident required to prepare financial reports under section 292 of the Corporations Act 2001 ; and | (a) | first, for the purpose of working out, for the income year, so much of your taxable income or tax loss as is not the subject of a choice made by you under any other item of that table: | ||
| (b) | you have made a choice under item 1 of the table in subsection 960-60(1) , and that choice is in effect for an income year | (i) | an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and | |||
| (ii) | the definition of foreign currency in subsection 995-1(1) does not apply; and | |||||
| (iii) | the applicable functional currency is taken not to be a foreign currency; and | |||||
| (iv) | Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and | |||||
| (b) | second, so much of your taxable income as is not the subject of a choice made by you under any other item of that table is to be translated into Australian currency. | |||||
| 2 | (a) | you are: | (a) | first, for the purpose of working out, for the income year, the taxable income or tax loss derived from the activity or business carried on at or through the permanent establishment: | ||
| (i) | an Australian resident carrying on an activity or business at or through an *overseas permanent establishment; or | (i) | an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and | |||
| (ii) | a foreign resident carrying on an activity or business at or through an *Australian permanent establishment; and | (ii) | the definition of foreign currency in subsection 995-1(1) does not apply; and | |||
| (b) | you have made a choice under item 2 of the table in subsection 960-60(1) in relation to the permanent establishment, and that choice is in effect for an income year | (iii) | the applicable functional currency is taken not to be a foreign currency; and | |||
| (iv) | Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and | |||||
| (b) | second, the taxable income derived from the activity or business carried on at or through the permanent establishment is to be translated into Australian currency. | |||||
| 3 | (a)
(b) |
you are an *offshore banking unit (OBU); and
you have made a choice under item 3 of the table in subsection 960-60(1) in relation to the OBU, and that choice is in effect for an income year |
(a) | first, for the purpose of working out, for the income year, your total assessable OB income (within the meaning of Division 9A of Part III of the Income Tax Assessment Act 1936 ) and your total OB deductions (within the meaning of that Division): | ||
| (i) | an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and | |||||
| (ii) | the definition of foreign currency in subsection 995-1(1) does not apply; and | |||||
| (iii) | the applicable functional currency is taken not to be a foreign currency; and | |||||
| (iv) | Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and | |||||
| (b) | second, the total assessable OB income and the total allowable OB deductions are to be translated into Australian currency. | |||||
| 4 | (a) | you are an attributable taxpayer (within the meaning of Part X of the Income Tax Assessment Act 1936 ) of a *controlled foreign company (CFC); and | (a) | first, for the purpose of working out, for the statutory accounting period, the *attributable income of the CFC: | ||
| (b) | you have made a choice under item 4 of the table in subsection 960-60(1) in relation to the CFC, and that choice is in effect for a *statutory accounting period of the CFC | (i) | an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and | |||
| (ii) | the definition of foreign currency in subsection 995-1(1) does not apply; and | |||||
| (iii) | the applicable functional currency is taken not to be a foreign currency; and | |||||
| (iv) | Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and | |||||
| (b) | second, the attributable income is to be translated into Australian currency. | |||||
| 5 | (a)
(b) |
you are a *transferor trust; and
you have made a choice under item 5 of the table in subsection 960-60(1) in relation to the trust, and that choice is in effect for an income year |
(a) | first, for the purpose of working out, for the income year, your attributable income (within the meaning of Division 6AAA of Part III of the Income Tax Assessment Act 1936 ): | ||
| (i) | an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and | |||||
| (ii) | the definition of foreign currency in subsection 995-1(1) does not apply; and | |||||
| (iii) | the applicable functional currency is taken not to be a foreign currency; and | |||||
| (iv) | Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and | |||||
| (b) | second, the attributable income is to be translated into Australian currency. | |||||
| 6 | (a) | you are a *foreign resident who makes a *capital gain or *capital loss from a *CGT event in relation to an asset that is an *indirect Australian real property interest; and | (a) | first, for the purpose of working out, for the income year, the amount of your capital gain or capital loss from the CGT event, an amount that is not in the applicable functional currency is to be translated into the applicable functional currency; and | ||
| (b) | you are required by subsection 960-61(2) to work out the amount of your capital gain or capital loss in the *applicable functional currency | (b) | second, the amount of the capital gain or capital loss is to be translated into Australian currency. |
Note:
The attributable income of a controlled foreign company is calculated separately for each attributable taxpayer - see section 381 of the Income Tax Assessment Act 1936 .
Examples of an amount
960-80(2)
The following are examples of an amount:
(a) an amount of *ordinary income;
(b) an amount of an expense;
(c) an amount of an obligation;
(d) an amount of a liability;
(e) an amount of a receipt;
(f) an amount of a payment;
(g) an amount of consideration;
(h) a value;
(i) a monetary limit or other amount set out in this Act or any other law of the Commonwealth.
960-80(3)
The amounts set out in paragraphs (2)(b) to (i) may be amounts on revenue account, capital account or otherwise.
Amounts that are elements in the calculation of other amounts
960-80(4)
In applying this section:
(a) first, translate any amounts that are elements in the calculation of other amounts (except *special accrual amounts); and
(b) then, calculate the other amounts.
Special accrual amounts
960-80(5)
In applying this section:
(a) calculate a *special accrual amount without translation and without applying the first rule set out in the relevant item of the table in subsection (1); and
(b) then, translate the special accrual amount to Australian currency for the purposes of applying the second rule set out in the relevant item of the table in subsection (1).
Special translation rules
960-80(6)
Subsection 960-50(6) has effect, in relation to the translation of an amount into the *applicable functional currency, as if each reference in that subsection to Australian currency were a reference to the applicable functional currency.
Regulations about translation
960-80(7)
An entity must comply with the regulations (if any) in translating an amount into:
(a) the *applicable functional currency; or
(b) Australian currency.
Note:
For example, the regulations could require the use of a particular translation method and require consistency in the use of the translation method.
960-80(8)
Regulations made for the purposes of subsection (7) may make provision in relation to a matter by applying, adopting or incorporating (with or without modifications) matter contained in any of the *accounting standards:
(a) as in force or existing at a particular time; or
(b) as in force or existing from time to time.
Australian resident required to prepare financial reports under section 292 of the Corporations Act 2001
960-85(1)
If:
(a) as the result of a choice (the current choice ) made by you under item 1 of the table in subsection 960-60(1) , subsection 960-80(1) requires that an amount be translated to the *applicable functional currency; and
(b) the amount is attributable to an event that happened, or a state of affairs that came into existence, at a time (the event time ) before the current choice took effect;
the table has effect:
| Special rule about translation | ||
| Item | In this case... | this is the result... |
| 1 | at the event time, no previous choice made by you under item 1 of the table in subsection 960-60(1) was in effect | the amount is to be translated first to Australian currency at the exchange rate applicable at the event time, and then to the *applicable functional currency at the exchange rate applicable when the current choice took effect. |
| 2 | at the event time, a previous choice made by you under item 1 of the table in subsection 960-60(1) was in effect | the amount is to be translated first to the previous *applicable functional currency at the exchange rate applicable at the event time, and then to the current applicable functional currency at the exchange rate applicable when the current choice took effect. |
Permanent establishment, offshore banking unit, CFC or transferor trust
960-85(2)
If:
(a) as the result of a choice (the current choice ) made by you under item 2, 3, 4 or 5 of the table in subsection 960-60(1) , subsection 960-80(1) requires that an amount be translated to the *applicable functional currency; and
(b) the amount is attributable to an event that happened, or a state of affairs that came into existence, at a time (the event time ) before the current choice took effect;
the table has effect:
| Special rule about translation | ||
| Item | In this case... | this is the result... |
| 1 | at the event time, no previous choice made by you under section 960-60 in relation to the establishment, unit, CFC or trust was in effect | the amount is to be translated first to Australian currency at the exchange rate applicable at the event time, and then to the *applicable functional currency at the exchange rate applicable when the current choice took effect. |
| 2 | at the event time, a previous choice made by you under section 960-60 in relation to the establishment, unit, CFC or trust was in effect | the amount is to be translated first to the previous *applicable functional currency at the exchange rate applicable at the event time, and then to the current applicable functional currency at the exchange rate applicable when the current choice took effect. |
The table has effect if you have made a choice under section 960-60 :
| Withdrawal | ||
| Item | In this case: | you may withdraw your choice with effect from immediately after the end of... |
| 1 | (a) you are an Australian resident who is required to prepare financial reports under section 292 of the Corporations Act 2001 ; and | the income year in which you withdraw your choice. |
| (b) your *applicable functional currency has ceased to be the sole or predominant currency in which you keep your accounts (within the meaning of section 960-70) | ||
| 2 | (a) you are an Australian resident carrying on an activity or business at or through an*overseas permanent establishment or a foreign resident carrying on an activity or business at or through an *Australian permanent establishment; and | the income year in which you withdraw your choice. |
| (b) the *applicable functional currency of the permanent establishment has ceased to be the sole or predominant currency in which the establishment keeps its accounts (within the meaning of section 960-70) | ||
| 3 | (a) you are an *offshore banking unit (OBU); and | the income year in which you withdraw your choice. |
| (b) the *applicable functional currency of the OBU has ceased to be the sole or predominant currency in which the OBU keeps its accounts (within the meaning of section 960-70) | ||
| 4 | (a) you are an attributable taxpayer (within the meaning of Part X of the Income Tax Assessment Act 1936 ) of a *controlled foreign company (CFC); and | the CFC ' s *statutory accounting period in which you withdraw your choice. |
| (b) you have made a choice under item 4 of the table in subsection 960-60(1) in relation to the CFC; and | ||
| (c) the *applicable functional currency of the CFC has ceased to be the sole or predominant currency in which the CFC keeps its accounts (within the meaning of section 960-70) | ||
| 5 | (a) you are a *transferor trust; and
(b) the *applicable functional currency of the trust has ceased to be the sole or predominant currency in which the trust keeps its accounts (within the meaning of section 960-70) |
the income year in which you withdraw your choice. |
960-90(2)
A withdrawal must be in writing.
960-90(3)
Withdrawing a choice does not prevent you from making a fresh choice under section 960-60 .
Subdivision 960-E - Entities SECTION 960-100 Entities 960-100(1)
Entity means any of the following:
(a) an individual;
(b) a body corporate;
(c) a body politic;
(d) a partnership;
(e) any other unincorporated association or body of persons;
(f) a trust;
(g) a *superannuation fund;
(h) an *approved deposit fund.
Note:
The term entity is used in a number of different but related senses. It covers all kinds of legal person. It also covers groups of legal persons, and other things, that in practice are treated as having a separate identity in the same way as a legal person does.
960-100(1A)
Paragraph (1)(e) does not include a *non-entity joint venture.
960-100(2)
The trustee of a trust, of a *superannuation fund or of an *approved deposit fund is taken to be an entity consisting of the person who is the trustee, or the persons who are the trustees, at any given time.
Note 1:
This is because a right or obligation cannot be conferred or imposed on an entity that is not a legal person.
Note 2:
The entity that is the trustee of a trust or fund does not change merely because of a change in the person who is the trustee of the trust or fund, or persons who are the trustees of the trust or fund.
960-100(3)
A legal person can have a number of different capacities in which the person does things. In each of those capacities, the person is taken to be a different entity .
Example:
In addition to his or her personal capacity, an individual may be:
• sole trustee of one or more trusts; and • one of a number of trustees of a further trust. In his or her personal capacity, he or she is one entity. As trustee of each trust, he or she is a different entity. The trustees of the further trust are a different entity again, of which the individual is a member.
960-100(4)
If a provision refers to an entity of a particular kind, it refers to the entity in its capacity as that kind of entity, not to that entity in any other capacity.
Example:
A provision that refers to a company does not cover a company in a capacity as trustee, unless it also refers to a trustee.
Note:
Under section 87-35 , certain parts of Australian governments and authorities are treated as separate entities for the purposes of ascertaining whether another entity is conducting a personal services business.
SECTION 960-105 Certain entities treated as agents 960-105(1)
This Act applies to an entity as if the entity were an agent of another entity (the principal ) if:
(a) the principal is outside Australia; and
(b) the entity is in Australia and, on behalf of the principal, holds money of the principal or has control, receipt or disposal of money of the principal.
960-105(2)
This Act, or a provision of this Act, applies to an entity as if the entity were an agent of another entity if the Commissioner determines in writing that the entity is the agent or sole agent of the other entity for the purposes of this Act or of that provision.
960-105(3)
A determination under subsection (2) is not a legislative instrument.
An entity is a corporate tax entity at a particular time if:
(a) the entity is a company at that time; or
(b) the entity is a *corporate limited partnership in relation to the income year in which that time occurs; or
(c) (Repealed by No 53 of 2016)
(d) the entity is a *public trading trust in relation to the income year in which that time occurs.
What constitutes a distribution by various *corporate tax entities is set out in the following table:
| Distribution | |||
| Item | Corporate tax entity | Distribution | |
| 1 | company | a dividend, or something that is taken to be a dividend, under this Act | |
| 2 | *corporate limited partnership | (a) | a distribution made by the partnership, whether in money or in other property, to a partner in the partnership, other than a distribution, or so much of a distribution, as is attributable to profits or gains arising during an income year in relation to which the partnership was not a corporate limited partnership |
| (b) | something that is taken to be a dividend by the partnership under this Act | ||
| 3 | (Repealed by No 53 of 2016) | ||
| 4 | *public trading trust | a unit trust dividend, as defined in section 102M of the Income Tax Assessment Act 1936 |
960-120(2)
A *corporate tax entity makes a distribution in the form of a dividend on the day on which the dividend is paid, or taken to have been paid.
The following table sets out who is a member of various entities.
| Members | ||
| Item | Entity | Member |
| 1 | company | a member of the company or a stockholder in the company |
| 2 | partnership | a partner in the partnership |
| 3 | trust (except a *public trading trust) | a beneficiary, unitholder or object of the trust |
| 4 | (Repealed by No 53 of 2016) | |
| 5 | *public trading trust | a unitholder of the trust |
960-130(2)
If 2 or more entities jointly hold interests or rights that give rise to membership of another entity, each of them is a member of the other entity.
960-130(3)
An entity is not a member of another entity just because the entity holds one or more interests or rights relating to the other entity that are *debt interests. This subsection has effect despite subsections (1) and (2) of this section.
Example:
An entity is not a member of a company as defined in this section merely because it is a member of the company in the ordinary sense of the term because it holds a finance share in the company, if the finance share is a debt interest. However, if the entity holds other shares in the company that are not debt interests, it will be a member because of those other shares.
SECTION 960-135 960-135 Membership interest in an entity
If you are a *member of an entity:
(a) each interest, or set of interests, in the entity; or
(b) each right, or set of rights, in relation to the entity;
by virtue of which you are a member of the entity is a membership interest of yours in the entity.
Note:
In conjunction with subsection 960-130(3) , this means that a debt interest is not a membership interest.
Example:
A member of a company holds a finance share in a company that is a debt interest and some other shares in the company that are not debt interests. Only the other shares are membership interests in the company. The finance share is not, because the member is not a member of the company because of that share (see subsection 960-130(3) ).
A *membership interest in a *corporate tax entity is an ordinary membership interest if:
(a) in the case of a membership interest in a company - it is an ordinary share; and
(b) in the case of a membership interest in a *corporate limited partnership - it is an interest in the income of the partnership; and
(c) in the case of a membership interest in a *public trading trust - it is a unit in the trust.
An entity's total participation interest at a particular time in another entity is the sum of:
(a) the entity's *direct participation interest in the other entity at that time; and
(b) the entity's *indirect participation interest in the other entity at that time.
Work out the indirect participation interest that an entity (the holding entity ) holds at a particular time in another entity (the test entity ) by multiplying:
(a) the holding entity's *direct participation interest (if any) in another entity (the intermediate entity ) at that time;
by:
(b) the sum of:
(i) the intermediate entity's direct participation interest (if any) in the test entity at that time; and
(ii) the intermediate entity's indirect participation interest (if any) in the test entity at that time (as worked out under one or more other applications of this section).
960-185(2)
If there is more than one intermediate entity to which paragraph (1)(a) applies at that time, the holding entity's indirect participation interest is the sum of the percentages worked out under subsection (1) in relation to each of those intermediate entities.
Use the following table to work out the direct participation interest that one entity holds in another entity.
| Direct participation interest | ||
| If the other entity is this kind of entity: | the direct participation interest that the first entity holds in the other entity is: | |
| 1 | A company (within the meaning of Part X of the Income Tax Assessment Act 1936 ) | the direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936 ) that the first entity holds in the other entity |
| 2 | A trust (within the meaning of Part X of the Income Tax Assessment Act 1936 ) | the direct control interest (within the meaning of section 351 of the Income Tax Assessment Act 1936 ) that the first entity holds in the other entity |
| 3 | A partnership | the direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936 ) that the first entitywould hold in the other entity, if the assumptions in subsection (3) of this section were made |
960-190(2)
For the purposes of subsection (1):
(a) apply sections 350 and 351 of the Income Tax Assessment Act 1936 as if those sections apply for the purposes of this Division rather than only for the purposes of Part X of that Act; and
(b) do not apply subsections 350(6) and (7) and 351(3) and (4) of that Act.
960-190(3)
For the purposes of item 3 of the table in subsection (1), assume that:
(a) the *partnership is a company; and
(b) the partners in the partnership are shareholders in the company; and
(c) the total amount of assets or capital contributed to the partnership is the total paid-up share capital of the company; and
(d) a partner's right of distribution of capital, assets or profits on the dissolution of the partnership is a shareholder's right to distribution of capital or profits of the company on winding-up; and
(e) a partner's right of distribution of capital, assets or profits otherwise than on the dissolution of the partnership is a shareholder's right to distribution of capital or profits of the company otherwise than on winding-up.
An interest held by an entity (the holding entity ) in another entity (the test entity ) passes the non-portfolio interest test at a time if the sum of the *direct participation interests held by the holding entity and its *associates in the test entity at that time is 10% or more.
Shares in a listed public company
960-220(1)
There is a trading in *shares in a company if there is an issue, redemption or transfer of those shares, or any other dealing in those shares, but only if it changes the respective proportions in which all the registered holders of shares in the company:
(a) can exercise the voting power in the company; or
(b) have the right to receive, as registered holders (whether or not for their own benefit) any dividends that the company may pay; or
(c) have the right to receive, as registered holders (whether or not for their own benefit) any distribution of capital of the company.
Note:
A special rule applies in working out whether an asset has stopped being a pre-CGT asset: see section 149-10 .
Units in a unit trust
960-220(2)
There is a trading in units in a unit trust if there is an issue, redemption or transfer of those units, or any other dealing in those units, but only if it changes the respective proportions in which all the registered holders of units in the trust hold (whether beneficially or not) interests in the trust income or trust capital.
Note:
A special rule applies in working out whether an asset has stopped being a pre-CGT asset: see section 149-10 .
SECTION 960-225 Abnormal trading 960-225(1)
There is an abnormal trading in *shares in a company, or in units in a unit trust, if a *trading in the shares or units is abnormal having regard to all relevant factors, including these:
(a) the timing of the trading, when compared with the normal timing for trading in the company's shares or in the trust's units;
(b) the number of shares or units traded, when compared with the normal number of the company's shares, or the trust's units, traded;
(c) any connection between the trading and any other trading in the company's shares or in the trust's units;
(d) any connection between the trading and a *tax loss or other deduction of the company or trust.
960-225(2)
There may also be an abnormal trading under any of the following provisions.
SECTION 960-230 960-230 Abnormal trading - 5% of shares or units in one transaction
There is an abnormal trading in *shares in a company, or in units in a unit trust, if 5% or more of the shares or units are *traded in one transaction.
There is an abnormal trading in *shares in a company, or in units in a unit trust, if the company or trustee knows or reasonably suspects that an entity (or an entity and one or more of the entity's *associates) has acquired (or redeemed) 5% or more of the shares or units in 2 or more transactions and would not have done so if the company or trust did not have a *tax loss or other deduction.
Time when abnormal trading happens
960-235(2)
The *abnormal trading happens at the time of the particular transaction that causes the 5% figure to be exceeded.
SECTION 960-240 960-240 Abnormal trading - suspected acquisition or merger
There is an abnormal trading in *shares in a company, or in units in a unit trust, if a *trading in those shares or units happens which the company or trustee knows or reasonably suspects is part of an acquisition or merger of the company with another company, or of the trust with another trust.
There is an abnormal trading in *shares in a company or units in a unit trust if more than 20% of the shares or units are *traded during a 60 day period.
Time when abnormal trading happens
960-245(2)
The *abnormal trading happens at the end of the 60 day period concerned.
Subdivision 960-J - Family relationships
SECTION 960-250 What this Subdivision is about
This Subdivision has 2 principles for defining family relationships.
The first principle is to treat an unmarried couple (whether of the same sex or different sexes) in the same way as a married couple if:
The second principle is to treat anyone who is defined to be an individual's child in the same way as the individual's natural child would be treated.
Both principles extend to tracing other family relationships, including beyond couples and children and their parents.
| Operative provisions | |
| 960-252 | Object of this Subdivision |
| 960-255 | Family relationships |
SECTION 960-252 Object of this Subdivision 960-252(1)
The first object of this Subdivision is to ensure that the same consequences flow under this Act and the other Acts to which this Subdivision applies from the relationship between 2 people who are an unmarried couple (whether of the same sex or different sexes) as from a marriage, if:
(a) the relationship is registered under a *State law or *Territory law (as mentioned in paragraph (a) of the definition of spouse in subsection 995-1(1) ); or
(b) they live together on a genuine domestic basis.
960-252(2)
The second object of this Subdivision is to ensure that under this Act and the other Acts to which this Subdivision applies, anyone who is defined to be an individual ' s *child is treated in the same way as if he or she were the individual ' s natural child.
Relationships between couples
960-255(1)
If one individual is the *spouse of another individual because of the definition of spouse in subsection 995-1(1) , relationships traced to, from or through the individual, and family groups of which either individual is a member, are to be determined in the same way as if the individual were legally married to the other individual.
Example:
George and Angelika are not legally married but live together on a genuine domestic basis in a relationship as a couple. This Act treats them as part of each other's family.
Relationships involving children
960-255(2)
If one individual is the *child of another individual because of the definition of child in subsection 995-1(1) , relationships traced to, from or through the individual, and family groups of which either individual is a member, are to be determined in the same way as if the individual were the natural child of the other individual.
Example:
Clare's stepfather Frank has a sister Angela. This Act applies as if Angela were Clare's aunt because Clare is defined to be Frank's child. That is, Clare's relationship to Angela is determined on the basis that Clare is Frank's natural child.
Application
960-255(3)
Subsections (1) and (2) apply for the purposes of this Act. They also apply for the purposes of a provision of another Act if one or more of the following applies for the purposes of that provision (or would apply if it were used in the provision):
(a) the definition of child in subsection 995-1(1) ;
(b) the definition of parent in subsection 995-1(1) ;
(c) the definition of relative in subsection 995-1(1) ;
(d) the definition of spouse in subsection 995-1(1) .
There are a number of provisions that require amounts to be indexed. This Subdivision shows you:
This table sets out the provisions for which indexation is relevant.
| Provisions for which indexation is relevant | ||
| Item | Topic of provision: | See: |
| 1 | Car limit | section 40-230 |
| 2 | Capital gains - cost base | Parts 3-1 and 3-3 |
| 3 | Capital gains - Improvements as separate assets | Subdivision 108-D |
| 3A | Dependant (invalid and carer) tax offset | section 61-30 |
| 4 | (Repealed by No 49 of 2019) | |
| 4A | (Repealed by No 109 of 2014) | |
| 5 | *Genuine redundancy payments and *early retirement scheme payments - base amount | subsection 83-170(3) |
| 6 | *Genuine redundancy payments and *early retirement scheme payments - service amount | subsection 83-170(3) |
| 7 | Reduction of superannuation contributions - pre-1 July 88 funding credits (unused amount at end of previous income year) | subsection 295-265(2) |
| 8 | *Employment termination payments - *ETP cap amount | section 82-160 |
| 9 | * Excess concessional contributions - * concessional contributions cap | subsection 291-20(2) |
| 10 | *Excess non-concessional contributions tax on superannuation contributions - index amount (*CGT cap amount) | subsection 292-105(4) |
| 10A | *General transfer balance cap | section 294-35 |
| 11 | *Superannuation benefits - index amount (*low rate cap amount) | subsection 307-345(4) |
| 12 | *Superannuation benefits - index amount (*untaxed plan cap amount) | subsection 307-350(4) |
| 13 | Thresholds for application of Division 250 | sections 250-25 and 250-30 |
| 13A | Concessional cross staple rent cap - existing lease with specified rent | section 12-443 in Schedule 1 to the Taxation Administration Act 1953 |
| 14 | Levy threshold for the major bank levy | subsection 4(3) of the Major Bank Levy Act 2017 |
Note:
There are provisions of the Income Tax Assessment Act 1936 dealing with indexation that have not yet been rewritten.
SECTION 960-270 Indexing amounts 960-270(1)
Some provisions of this Act require amounts to be indexed. You index an amount by multiplying it by its *indexation factor.
960-270(2)
You do not index the amount if its *indexation factor is 1 or less.
960-270(3)
This section does not apply in relation to amounts mentioned in the provisions listed at items 8 to 12, or at item 14, in section 960-265 .
Note:
For the indexation of those amounts, see sections 960-285 and 960-290 .
SECTION 960-275 Indexation factor 960-275(1)
For indexation of amounts on an annual basis, the indexation factor is:
| Sum of the *index numbers for the *quarters in the year ending on
31 March just before the start of the relevant *financial year Sum of the *index numbers for the *quarters in the year ending on the previous 31 March |
960-275(1A)
However, for indexation of the amounts mentioned in the provisions listed at items 5, 6 and 7 in section 960-265 , the indexation factor is:
| *
Index number for the
*
quarter ending on
31 December just before the start of the relevant income year |
| * Index number for the * quarter ending on the previous 31 December |
960-275(2)
For indexation of the *cost base of a *CGT asset (except the first element of the cost base of an asset covered by subsection (3)), the indexation factor for expenditure in an element of the cost base is:
|
*Index number for the *quarter ending on 30 September 1999
*Index number for the *quarter in which the expenditure was incurred |
The expenditure can include giving property: see section 103-5 .
Note 1:
This rule does not apply to expenditure incurred after 11.45 am on 21 September 1999 or any expenditure relating to a CGT asset acquired after that time: seesection 114-1 .
Note 2:
This rule applies even if you do not actually pay some of the expenditure until a later time (for example, under a contract to purchase an asset by instalments).
Note 3:
There are rules affecting when the expenditure was incurred: see sections 114-15 and 114-20 .
960-275(3)
For indexation of the first element of the *cost base of a *CGT asset that is:
(a) a *share in a company; or
(b) a unit in a unit trust;
the indexation factor for an amount in the first element of the *cost base of the asset that was paid to the company or trust at a time after it was *acquired is:
|
*Index number for the *quarter ending on 30 September 1999
*Index number for the *quarter in which the amount was paid |
The payment can include giving property: see section 103-5 .
Example:
Peter acquires shares in a company. The shares are partly-paid, and the company makes a call on the shares. Peter sells the shares to Narina before he is liable to pay the call.
The amount Narina paid to Peter for the shares is indexed under subsection 960-275(2) from the quarter in which she incurred the expenditure to acquire the shares.
The amount Narina later pays for the call on the shares is indexed in accordance with subsection 960-275(3) from the quarter in which she made that later payment.
Note 1:
This subsection does not apply to shares or units you acquired before 16 August 1989: see section 960-275 of the Income Tax (Transitional Provisions) Act 1997 .
Note 2:
This subsection does not apply to an amount paid after 11.45 am on 21 September 1999 or an amount paid in relation to a CGT asset acquired after that time: see section 114-1 .
960-275(4)
However, you cannot index expenditure in the third element of the *cost base of a CGT asset (costs of ownership).
960-275(5)
You work out the *indexation factor to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
Example:
If the factor is 1.102795, it would be rounded up to 1.103.
960-275(6)
This section does not apply in relation to amounts mentioned in the provisions listed at items 8 to 12, or at item 14, in section 960-265 .
Note:
For the indexation of those amounts, see sections 960-285 and 960-290 .
SECTION 960-280 Index number 960-280(1)
In most cases, the index number for a *quarter is the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) first published by the Australian Statistician for the quarter.
Car limit
960-280(2)
For calculating the *car limit, the index number for a *quarter is the index number for the motor vehicle purchase sub-group of the Consumer Price Index, being the weighted average of the 8 capital cities, first published by the Australian Statistician for the quarter.
960-280(3)
If the Australian Statistician changes the index reference period for an *index number, only index numbers published in terms of the new index reference period are to be used after the change.
Genuine redundancy, early retirement schemes, pre-1 July 88 funding credits
960-280(4)
For calculating the amounts mentioned in the provisions listed at items 5, 6 and 7 in section 960-265 , the index number for a *quarter is the estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter first published by the Australian Statistician in respect of that month.
960-280(5)
Subsection (3) does not apply to the index numbers mentioned in subsection (4).
Exceptions
960-280(6)
This section does not apply in relation to amounts mentioned in the provisions listed at items 8 to 12, or at item 14, in section 960-265 .
Note:
For the indexation of those amounts, see sections 960-285 and 960-290 .
SECTION 960-285 Indexation - superannuation and employment termination 960-285(1)
This section applies in relation to the amounts listed at items 8 to 12 in section 960-265 .
Indexing amounts
960-285(2)
You index the amount by:
(a) first, multiplying its base amount mentioned in subsection (3) by its *indexation factor mentioned in subsection (5); and
(b) next, rounding the result in paragraph (a) down to the nearest multiple of its *rounding amount.
Example 1:
An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $143,000, the indexed amount is rounded back down to $140,000.
Example 2:
An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $146,000, the indexed amount is rounded down to $145,000.
960-285(3)
The amount (the base amount ) for an amount to which this section applies is:
(a) unless paragraph (b) applies - the amount for the 2007-2008 income year or *financial year; or
(b) if the amount is mentioned in item 9 or 10A in section 960-265 - the amount for the 2017-2018 financial year.
960-285(4)
You do not index the amount if the *indexation factor is 1 or less.
Indexation factor
960-285(5)
For indexing an amount, its indexation factor is:
| *Index number mentioned in subsection (7) for the *quarter ending on 31 December just before the start of the relevant income year or *financial year | ||
| *Index number mentioned in subsection (7) for the base quarter |
where:
(a) unless paragraph (b) applies - the quarter ending on 31 December 2006; or
(b) if the amount is mentioned in item 9 or 10A in section 960-265 - the quarter ending on 31 December 2016.
960-285(6)
You work out the *indexation factor mentioned in subsection (5) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
Index number and rounding amount
960-285(7)
For indexing an amount to which this section applies:
(a) the index number for a *quarter is set out in column 2 of the relevant item in the following table; and
(b) the rounding amount is set out in column 3 of that item.
| Concepts for indexing rounded caps | |||
| Item |
Column 1
Item in section 960-265 |
Column 2
Index number |
Column 3
Rounding amount |
| 1 | Items 8, 10, 11 and 12 | the *index number mentioned in subsection 960-280(4) (which is about average weekly ordinary time earnings) | $5,000 |
| 2 | Item 9 (concessional contributions cap) | the *index number mentioned in subsection 960-280(4) (which is about average weekly ordinary time earnings) | $2,500 |
| 3 | Item 10A (general transfer balance cap) | the *index number mentioned in subsection 960-280(1) (which is about the CPI) | $100,000 |
You index, on a *quarterly basis, the amount mentioned in the provision listed at item 14 in section 960-265 by:
(a) first, multiplying the amount by its *indexation factor mentioned in subsection (3); and
(b) next, rounding the result in paragraph (a) down to the nearest multiple of $1,000,000.
960-290(2)
You do not index the amount if the *indexation factor is 1 or less.
960-290(3)
For indexation of the amount, the indexation factor is:
| GDP number for the preceding quarter | ||
| GDP number for the base quarter |
where:
GDP number for the base quarter
is the estimate that is, at the end of the *quarter to which the indexation is to be applied, the estimate of the Gross Domestic Product: Current Prices-Seasonally Adjusted most recently published by the Australian Statistician for the *quarter ending on 30 June 2017.
GDP number for the preceding quarter
is the estimate of the Gross Domestic Product: Current Prices-Seasonally Adjusted first published by the Australian Statistician for the *quarter preceding the quarter to which the indexation is to be applied.
960-290(4)
You work out the *indexation factor mentioned in subsection (3) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
(Repealed by No 80 of 2007 )
960-335 (Repealed) SECTION 960-335 Meaning of small business taxpayer
(Repealed by No 80 of 2007 )
(Repealed by No 80 of 2007 )
(Repealed by No 80 of 2007 )
(Repealed by No 80 of 2007 )
(Repealed by No 80 of 2007 )
The expression " market value " is often used in this Act with its ordinary meaning.
However, in some cases that expression has a meaning affected by this Subdivision.
The Commissioner may approve methods to use for working out the market value of assets or non-cash benefits.
SECTION 960-405 Effect of GST on market value of an asset 960-405(1)
The market value of an asset at a particular time is reduced by the amount of the *input tax credit (if any) to which you would be entitled assuming that:
(a) you had *acquired the asset at that time; and
(b) the acquisition had been solely for a *creditable purpose.
960-405(2)
Subsection (1) does not apply:
(a) to an asset the *supply of which cannot be a *taxable supply; or
(b) in working out the *market value of economic benefits, or of *equity or loan interests, for the purposes of Part 3-95 (about value shifting).
Note:
Some assets, such as shares, cannot be the subject of a taxable supply.
In working out the market value of a *non-cash benefit, disregard anything that would prevent or restrict conversion of the benefit to money.
The *market value of an asset or *non-cash benefit that you work out using a method approved under subsection (2) for that kind of asset or benefit binds the Commissioner in relation to you.
Note:
You do not have to use the method.
960-412(2)
The Commissioner may, by legislative instrument, approve methods for working out the *market value of assets or *non-cash benefits. A method may include conditions.
Note 1:
Different methods may be approved for different kinds of assets or non-cash benefits (see subsection 13(3) of the Legislation Act 2003 ).
Note 2:
Any approved method would need to be consistent with the other rules about market value in this Subdivision.
To avoid doubt, apply the rules in this Subdivision to the *market value component of any calculation that involves market value.
SECTION 960-500 What this Subdivision is about
This Subdivision includes rules about the meaning of Australia when used in a geographical sense.
The ordinary meaning of Australia includes each State and internal Territory of Australia and their internal waters and any islands that are part of those State and Territories.
This Subdivision extends the ordinary meaning of Australia to include each external Territory of Australia (other than the Australian Antarctic Territory) and certain offshore areas and certain offshore installations.
| Operative provisions | |
| 960-505 | Meaning of Australia |
SECTION 960-505 Meaning of Australia
Territories
960-505(1)
Australia , when used in a geographical sense, includes each of the following:
(a) Norfolk Island;
(b) the Coral Sea Islands Territory;
(c) the Territory of Ashmore and Cartier Islands;
(d) the Territory of Christmas Island;
(e) the Territory of Cocos (Keeling) Islands;
(f) the Territory of Heard Island and the McDonald Islands.
Note:
Section 15B of the Acts Interpretation Act 1901 provides that an Act is taken to have effect in the coastal sea of Australia as if the coastal sea were part of Australia.
Offshore areas
960-505(2)
Australia , when used in a geographical sense, includes an offshore area for the purposes of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .
Note 1:
The offshore area includes all things located in that area, including all installations and structures such as oil and gas rigs. The area also extends to the airspace over, and the sea-bed and subsoil beneath, that area.
Note 2:
The offshore area includes the exclusive economic zone and the continental shelf of Australia.
SECTION 960-550 What this Subdivision is about
Generally speaking, a significant global entity is:
| Operative provisions | |
| 960-555 | Meaning of significant global entity |
| 960-560 | Meaning of global parent entity |
| 960-565 | Meaning of annual global income |
| 960-570 | Meaning of global financial statements |
| 960-575 | Meaning of notional listed company group |
SECTION 960-555 Meaning of significant global entity 960-555(1)
An entity is a significant global entity for a period if the entity is a *global parent entity:
(a) whose *annual global income for the period is $1 billion or more; or
(b) in relation to whom the Commissioner makes a determination under subsection (3) for the period.
960-555(2)
An entity is also a significant global entity for a period if:
(a) the entity is a member of a group of entities that are consolidated for accounting purposes as a single group; and
(b) one of the other members of the group is a *global parent entity:
(i) whose *annual global income for the period is $1 billion or more; or
(ii) in relation to whom the Commissioner makes a determination under subsection (3) for the period.
960-555(2A)
An entity is also a significant global entity for a period if:
(a) the entity is a *member of a *notional listed company group; and
(b) one of the other members of the group is a *global parent entity:
(i) whose *annual global income for the period is $1 billion or more; or
(ii) in relation to whom the Commissioner makes a determination under subsection (3) for the period.
960-555(3)
The Commissioner may make a determination under this subsection in relation to a *global parent entity for a period if:
(a) *global financial statements have not been prepared for the entity for the period; and
(b) on the basis of the information available to the Commissioner, the Commissioner reasonably believes that, if such statements had been prepared for the period, the entity ' s *annual global income for the period would have been $1 billion or more.
The Commissioner must give a notice of the determination to the global parent entity, or to another entity that becomes a *significant global entity as a result of the determination.
960-555(4)
An entity who is dissatisfied with a determination made in relation to the entity may object against the determination in the manner set out in Part IVC of the Taxation Administration Act 1953 .
960-555(5)
However, if:
(a) there has been a taxation objection (within the meaning of section 14ZL of the Taxation Administration Act 1953 ) against an *assessment relating to the entity; and
(b) the assessment involved the application of section 177DA of the Income Tax Assessment Act 1936 (schemes that limit a taxable presence in Australia) in relation to the entity;
the right of objection under subsection (4) of this section is unaffected, but the outcome of that objection has no effect on the assessment or on the outcome of the taxation objection.
Note:
Section 14ZVA of the Taxation Administration Act 1953 excludes from a taxation objection to an assessment any grounds (or potential grounds) for an objection to a determination under subsection (3) of this section.
960-555(6)
A determination under subsection (3) is not a legislative instrument.
960-555(7)
Section 175 of the Income Tax Assessment Act 1936 (validity) applies to a determination under subsection (3) of this section in the same way as it applies to an *assessment.
A global parent entity is an entity that, according to:
(a) *accounting principles; or
(b) if accounting principles do not apply in relation to the entity - commercially accepted principles relating to accounting;
is not controlled by another entity.
Note:
A global parent entity may be a single entity that is not a member of a group of entities.
The annual global income of an entity for a period is:
(aa) if the entity is a *member of a *notional listed company group - the total annual income of all the members of the group (worked out on the assumption that all members of the group were consolidated for accounting purposes as a single group); or
(a) if paragraph (aa) does not apply and the entity is a member of a group of entities that are consolidated for accounting purposes as a single group - the total annual income of all the members of the group; or
(b) otherwise - the total annual income of the entity;
as shown in the latest *global financial statements for the entity for the period.
960-565(2)
Subsection (3) applies if:
(a) *global financial statements have not been prepared for the entity for the period; or
(b) global financial statements have not been prepared for the entity for the period that show the total annual income mentioned in subsection (1).
960-565(3)
Despite subsection (1), the annual global income of the *entity for the period is the amount that would be, on the assumption that such statements had been prepared, the total annual income mentioned in subsection (1) shown in those statements.
Global financial statements for an entity for a period (the relevant period ) are the financial statements that:
(a) have been prepared and audited in relation to that entity, or that entity and other entities, in accordance with:
(i) *accounting principles and *auditing principles; or
(ii) if such principles do not apply - commercially accepted principles, relating to accounting and auditing, that ensure the statements give a true and fair view of the financial position and performance of that entity (or that entity and the other entities on a consolidated basis); and
(b) are for the most recent period ending:
(i) no later than the end of the relevant period; and
(ii) no earlier than 12 months before the start of the relevant period.
A notional listed company group is a group of entities that would be required to be consolidated for accounting purposes as a single group, on the assumption that an entity (the test entity ) were a listed company (within the meaning of section 26BC of the Income Tax Assessment Act 1936 ).
960-575(2)
Each entity in that group is a member of the *notional listed company group.
960-575(3)
For the purposes of subsection (1), determine whether a group of entities would be required to be consolidated for accounting purposes as a single group according to:
(a) *accounting principles; or
(b) if accounting principles do not apply in relation to the test entity - commercially accepted principles related to accounting.
960-575(4)
In applying the *accounting principles or commercially accepted principles referred to in subsection (3):
(a) disregard any exceptions in those principles to requirements in those principles for entities to be consolidated as a single group; and
(b) without limiting paragraph (a), disregard any rule in those principles providing that one or more entities (the excepted entities ) are not required to be consolidated as a single group with one or more other entities because the effect of such consolidation would be immaterial as a result of:
(i) the size of the excepted entities; or
(ii) any other matter.
SECTION 961-1 What this Subdivision is about
This Subdivision provides for a notional tax offset for an income year if you contribute to the maintenance of a non-student child or a student dependant. The notional tax offset can only be taken into account in working out certain tax offsets under the Income Tax Assessment Act 1936 .
| Entitlement to the notional tax offset | |
| 961-5 | Who is entitled to the notional tax offset |
| Amount of the notional tax offset | |
| 961-10 | Amount of the dependant (non-student child under 21 or student) notional tax offset |
| 961-15 | Reduced amounts of the dependant (non-student child under 21 or student) notional tax offset |
| 961-20 | Reductions to take account of the dependant ' s income |
SECTION 961-5 Who is entitled to the notional tax offset 961-5(1)
You are entitled to a notional tax offset for an income year if:
(a) you are an individual; and
(b) you are an Australian resident; and
(c) during the year you contribute to the maintenance of another individual (the dependant ) who:
(i) is less than 25 years of age, and is a full-time student at a school, college or university; or
(ii) if subparagraph (i) does not apply - is less than 21 years of age; and
(d) during the year:
(i) the dependant is an Australian resident; or
(ii) you had a domicile in Australia.
961-5(2)
You may be entitled to more than one notional tax offset for the year under subsection (1) if you contributed to the maintenance of more than one dependant during the year.
Note:
The amount of the notional tax offset in relation to each subsequent dependant may only be part of the full amount: see subsection 961-15(1) .
961-5(3)
The notional tax offset only affects your *income tax liability as provided for by sections 23AB , 79A and 79B of the Income Tax Assessment Act 1936 .
Note:
Section 23AB of that Act provides a tax offset for service with an armed force under the control of the United Nations; section 79A provides a tax offset for residents of isolated areas; section 79B provides a tax offset for members of the Defence Force who are serving overseas.
SECTION 961-10 Amount of the dependant (non-student child under 21 or student) notional tax offset 961-10(1)
The amount of the notional tax offset to which you are entitled in relation to a dependant under section 961-5 for an income year is $376.
961-10(2)
However, if you are entitled to 2 or more such notional tax offsets for the income year in relation to individuals covered by subparagraph 961-5(1)(c)(ii) , the amount of the notional tax offset under section 961-5 is:
(a) in relation to the oldest of those individuals - $376; and
(b) in relation to each of the others - $282.
The amount of the notional tax offset under section 961-10 is reduced by the amount in accordance with subsection (2) of this section if one or more of the following applies:
(a) paragraph 961-5(1)(c) applies during part only of the year;
(b) paragraph 961-5(1)(d) applies during part only of the year;
(c) during the whole or part of the year, 2 or more individuals contribute to the maintenance of the dependant;
(d) the dependant only meets the description of the individual covered by subparagraph 961-5(1)(c)(i) or (ii) for part of the year.
961-15(2)
The amount of a notional tax offset is reduced to an amount that, in the Commissioner ' s opinion, is a reasonable apportionment in the circumstances, having regard to the applicable matters referred to in paragraphs (1)(a) to (d).
The amount of the notional tax offset under sections 961-10 and 961-15 in relation to the dependant for the year is reduced by $1 for every $4 by which the following exceeds $282:
(a) if you contribute to the maintenance of the dependant for the whole of the year - the dependant ' s *adjusted taxable income for offsets for the year;
(b) if paragraph (a) does not apply - the dependant ' s adjusted taxable income for offsets for that part of the year during which you contribute to the dependant ' s maintenance.
SECTION 961-50 What this Subdivision is about
This Subdivision provides for a notional tax offset for an income year if you are the sole contributor to the maintenance of a non-student child or a student dependant. The notional tax offset can only be taken into account in working out certain tax offsets under the Income Tax Assessment Act 1936 .
| Operative provisions | |
| 961-55 | Who is entitled to the notional tax offset |
| 961-60 | Amount of the dependant (sole parent of a non-student child under 21 or student) notional tax offset |
| 961-65 | Reductions to take account of change in circumstances |
SECTION 961-55 Who is entitled to the notional tax offset 961-55(1)
You are entitled to a notional tax offset for an income year if:
(a) during the year you have the sole care of another individual (the dependant ) who:
(i) is less than 25 years of age, and is a full-time student at a school, college or university; or
(ii) if subparagraph (i) does not apply - is less than 21 years of age; and
(b) you are entitled to a notional tax offset under Subdivision 961-A for the dependant; and
(c) during the year you did not have a *spouse.
961-55(2)
Paragraph (1)(c) does not apply if, in the opinion of the Commissioner, because of special circumstances, the paragraph should not apply.
961-55(3)
The notional tax offset only affects your *income tax liability as provided for by sections 79A and 79B of the Income Tax Assessment Act 1936 .
Note:
Section 79A of that Act provides a tax offset for residents of isolated areas; section 79B provides a tax offset for members of the Defence Force who are serving overseas.
The amount of the notional tax offset to which you are entitled under section 961-55 for an income year is $1,607.
Note:
The amount of the offset under this section applies regardless of whether you have one or more dependants that satisfy section 961-55 .
The amount of the notional tax offset under section 961-60 is reduced in accordance with subsection (2) if:
(a) paragraph 961-55(1)(a) applies during only part of the year; or
(b) paragraph 961-55(1)(c) does not apply because of subsection 961-55(2).
961-65(2)
The amount of the notional tax offset is reduced to an amount that, in the Commissioner ' s opinion, is a reasonable apportionment in the circumstances, having regard to the matters referred to in paragraphs (1)(a) and (b).
This Division tells you whether an interest is a debt interest, or an equity interest, for tax purposes. An interest that could be characterised as both a debt interest and an equity interest will be treated as a debt interest for tax purposes (except for certain interests that fund returns on equity interests).
Whether an interest is a debt interest or an equity interest matters because returns on debt interests are not frankable but may be deductible while returns on equity interests are not deductible but may be frankable.
This Division extends beyond shares the range of interests that are recognised as equity in a company. An interest that is an equity interest in a company but is not a share will be treated in the same way as a share for some tax purposes (particularly in relation to the determination of the tax treatment of returns on the interest).
This Division also tells you how to work out which distributions made in respect of a non-share equity interest in a company will be non-share dividends and which will be non-share capital returns. Those that are non-share dividends will be treated, for most tax purposes, in the same way as dividends.
Test for distinguishing debt and equity interests
974-5(1)
The test for distinguishing between debt interests and equity interests focuses on economic substance rather than mere legal form (see subsection 974-10(2) ). The test is designed to assess the economic substance of an interest in terms of its impact on the issuer's position.
Debt interests
974-5(2)
Subdivision 974-B tells you when an interest is a debt interest in an entity. The basic test is in section 974-20 .
Equity interests
974-5(3)
Subdivision 974-C tells you when an interest is an equity interest in a company. The basic test is in section 974-75 .
Tie breaker between debt and equity
974-5(4)
If an interest satisfies both the debt test and the equity test, it is treated as a debt interest and not an equity interest.
Distributions in relation to equity interests that are not shares
974-5(5)
If you have an equity interest in a company that is not a share, Subdivision 974-E tells you what will count as a non-share distribution, a non-share dividend and a non-share capital return in relation to the interest.
Concepts used in the debt and equity tests
974-5(6)
Subdivision 974-F defines a number of concepts that are used in the debt and equity tests (financing arrangement, effectively non-contingent obligation, benchmark rate of return and converting interest).
Operative provisions
SECTION 974-10 Object 974-10(1)
An object of this Division is to establish a test for determining for particular tax purposes whether a *scheme, or the combined operation of a number of schemes:
(a) gives rise to a *debt interest; or
(b) gives rise to an *equity interest.
Note 1:
The test is used, for example, for:
Note 2:
Subdivision 167-A has special rules for working out rights to dividends and capital distributions in a company whose shares do not all carry the same rights to those matters. Those rules include disregarding debt interests.
974-10(2)
Another object of this Division is that the test referred to in subsection (1) is to operate on the basis of the economic substance of the rights and obligations arising under the *scheme or schemes rather than merely on the basis of the legal form of the scheme or schemes.
Note 1:
The basic indicator of the economic character of a debt interest is the non-contingent nature of the returns. The basic indicator of the economic character of an equity interest, on the other hand, is the contingent nature of the returns (or convertibility into an interest of that nature).
Note 2:
The test is intended to operate, for example, to:
This will not happen if a provision in this Act specifically provides for a different treatment for the interest or dividend.
974-10(3)
Another object of this Division is that the combined effect of *related schemes be taken into account in appropriate cases:
(a) to ensure that the test operates effectively on the basis of the economic substance of the rights and obligations arising under the schemes rather than merely on the basis of the legal form of the schemes; and
(b) to prevent the test being circumvented by entities merely entering into a number of separate schemes instead of a single scheme.
974-10(4)
Another object of this Division is to identify the distributions and credits made in respect of *non-share equity interests in a company that are to be treated as *dividends ( non-share dividends ) and those that are to be treated as returns of capital ( non-share capital returns ).
Note:
Non-share dividends will generally be included in the recipient ' s assessable income and may be frankable.
974-10(5)
The Commissioner must have regard to the objects stated in subsections (1) to (3) in exercising the power to make a determination under any of the following provisions:
(a) subsection 974-15(4) ;
(b) subsection 974-60(3) , (4) or (5);
(c) section 974-65 ;
(d) subsection 974-70(4) ;
(e) subsection 974-150(1) .
Note:
An entity can apply to the Commissioner to have a determination made and can object under Part IVC of the Taxation Administration Act 1953 if it is dissatisfied with a determination (see section 974-112 ).
974-10(6)
Regulations may also be made under the provisions of this Division:
(a) to clarify the meaning of certain words and phrases in the light of emerging commercial practices, conditions and products; and
(b) to give guidance on the detailed operation of particular provisions.
The regulations must be consistent with the objects stated in subsections (1) to (3).
974-10(7)
Without limiting subsection 13(3) of the Legislation Act 2003 , the regulations made for the purposes of this Division may specify different rules for different classes of circumstances.
Subdivision 974-B - Debt interests
Single scheme giving rise to debt interest
974-15(1)
A *scheme gives rise to a debt interest in an entity if the scheme, when it comes into existence, satisfies the debt test in subsection 974-20(1) in relation to the entity.
Note 1:
A debt interest can also arise under subsection (2) (related schemes) or section 974-65 (Commissioner's discretion).
Note 2:
Section 974-55 defines various aspects of the debt interest that arises.
Related schemes giving rise to debt interest
974-15(2)
Two or more *related schemes (the constituent schemes ) together give rise to a debt interest in an entity if:
(a) the entity enters into, participates in or causes another entity to enter into or participate in the constituent schemes; and
(b) a scheme with the combined effect or operation of the constituent schemes (the notional scheme ) would satisfy the debt test in subsection 974-20(1) in relation to the entity if the notional scheme came into existence when the last of the constituent schemes came into existence; and
(c) it is reasonable to conclude that the entity intended, or knew that a party to the scheme or one of the schemes intended, the combined economic effects of the constituent schemes to be the same as, or similar to, the economic effects of a debt interest.
This is so whether or not the constituent schemes come into existence at the same time and even if none of the constituent schemes would individually give rise to that or any other *debt interest.
Note:
Section 974-105 explains the effect, for tax purposes, of actions taken under the schemes.
974-15(3)
Subsection (2) does not apply if each of the *schemes individually gives rise to a *debt interest in the entity.
974-15(4)
Two or more *related schemes do not give rise to a debt interest in an entity under subsection (2) if the Commissioner determines that it would be unreasonable to apply that subsection to those schemes.
974-15(5)
Without limiting subsection 974-10(5) , the Commissioner must, in exercising the power to make a determination under subsection (4), have regard to the following:
(a) the purpose of the *schemes (considered both individually and in combination);
(b) the effects of the schemes (considered both individually and in combination);
(c) the rights and obligations of the parties to the schemes (considered both individually and in combination);
(d) whether the schemes (when considered either individually or in combination) provide the basis for, or underpin, an interest issued to investors with the expectation that the interest can be assigned to other investors;
(e) whether the schemes (when considered either individually or in combination) comprise a set of rights and obligations issued to investors with the expectation that it can be assigned to other investors;
(f) any other relevant circumstances.
974-15(6)
If:
(a) 2 or more *related schemes give rise to a *debt interest in an entity; and
(b) one or more of those schemes (the hedging scheme or schemes ) are schemes for hedging or managing financial risk; and
(c) the other scheme or schemes give rise to a debt interest in the entity even if the hedging scheme or schemes are disregarded;
the debt interest that arises from the schemes is taken, for the purposes of Division 820 (the thin capitalisation rules), not to include the hedging scheme or schemes.
Note:
This means that in these circumstances the losses associated with the hedging scheme or schemes are not debt deductions under section 820-40 .
SECTION 974-20 The test for a debt interest
Satisfying the debt test
974-20(1)
A *scheme satisfies the debt test in this subsection in relation to an entity if:
(a) the scheme is a *financing arrangement for the entity; and
(b) the entity, or a *connected entity of the entity, receives, or will receive, a *financial benefit or benefits under the scheme; and
(c) the entity has, or the entity and a connected entity of the entity each has, an *effectively non-contingent obligation under the scheme to provide a financial benefit or benefits to one or more entities after the time when:
(i) the financial benefit referred to in paragraph (b) is received if there is only one; or
(ii) the first of the financial benefits referred to in paragraph (b) is received if there are more than one; and
(d) it is substantially more likely than not that the value provided (worked out under subsection (2)) will be at least equal to the value received (worked out under subsection (3)); and
(e) the value provided (worked out under subsection (2)) and the value received (worked out under subsection (3)) are not both nil.
The scheme does not need to satisfy paragraph (a) if the entity is a company and the interest arising from the scheme is an interest covered by item 1 of the table in subsection 974-75(1) (interest as a member or stockholder of the company).
Note:
Section 974-30 tells you when a financial benefit is taken to be provided to an entity.
974-20(2)
The value provided is:
(a) the value of the *financial benefit to be provided under the *scheme by the entity or a *connected entity if there is only one; or
(b) the sum of the values of all the financial benefits provided or to be provided under the scheme by the entity or a connected entity of the entity if there are 2 or more.
Note:
Section 974-35 tells you how to value financial benefits.
974-20(3)
The value received is:
(a) the value of the *financial benefit received, or to be received, under the *scheme by the entity or a *connected entity of the entity if there is only one; or
(b) the sum of the values of all the financial benefits received, or to be received, under the scheme by the entity or a connected entity if there are 2 or more.
974-20(4)
For the purposes of paragraph (1)(b) and subsections (2) and (3):
(a) a *financial benefit to be provided under the *scheme by the entity or a *connected entity is taken into account only if it is one that the entity or connected entity has an *effectively non-contingent obligation to provide; and
(b) a financial benefit to be received under the scheme by the entity or a connected entity is taken into account only if it is one that another entity has an effectively non-contingent obligation to provide.
Multiple financial benefits
974-20(5)
Paragraphs (1)(b) and (c) apply to 2 or more *financial benefits whether they are provided at the same time or over a period of time.
Regulations
974-20(6)
The regulations:
(a) may specify circumstances in which paragraph (1)(d) is satisfied or not satisfied; and
(b) may otherwise specify rules to be applied in determining whether or not paragraph (1)(d) is satisfied.
Short term schemes
974-25(1)
A *scheme does not satisfy the debt test in subsection 974-20(1) in relation to an entity if:
(a) at least a substantial part of a *financial benefit mentioned in that subsection does not consist of either of the following or a combination of either of the following:
(i) a liquid or monetary asset;
(ii) an amount of money; and
(b) the scheme requires the financial benefit mentioned in paragraph 974-20(1)(c) to be provided within a period of no more than 100 days of the receipt of the first financial benefit mentioned in paragraph 974-20(1)(b) ; and
(c) the financial benefit mentioned in paragraph 974-20(1)(c) :
(i) is in fact provided within that period; or
(ii) is not provided within that period because the entity required to provide the benefit neglects to provide the benefit within that period (although willing to do so); or
(iii) is not provided within that period because the entity required to provide the benefit is unable to provide the benefit within that period (although willing to do so); and
(d) the scheme is not one of a number of *related schemes that together are taken to give rise to a *debt interest under subsection 974-15(2) .
Regulations
974-25(2)
The regulations may make provision in relation to the application or operation of subsection (1). Without limiting this, the regulations may:
(a) specify what constitutes a substantial part of a *financial benefit for the purposes of paragraph (1)(a); or
(b) specify a period to be substituted for the period referred to in paragraph (1)(b).
Issue of equity interest
974-30(1)
The following do not constitute the provision of a *financial benefit by an entity or a *connected entity of the entity:
(a) the issue of an *equity interest in the entity or a connected entity of the entity; or
(b) an amount that is to be applied in respect of the issue of an equity interest in the entity or a connected entity of the entity.
Providing a financial benefit to an entity
974-30(2)
A *financial benefit is taken to be provided to an entity if it is provided:
(a) to the entity; or
(b) on the entity's behalf; or
(c) for the entity's benefit.
Obligation to provide future financial benefit
974-30(3)
For the avoidance of doubt, if you have a present obligation to provide a *financial benefit to an entity at some time in the future:
(a) the financial benefit is taken to be a financial benefit to be provided in the future; and
(b) the obligation to provide the financial benefit is taken not to be a financial benefit being provided at the present.
Value in nominal terms or present value terms
974-35(1)
For the purposes of this Subdivision:
(a) the value of a *financial benefit received or provided under a *scheme is its value calculated:
(i) in nominal terms if the performance period (see subsection (3)) must end no later than 10 years after the interest arising from the scheme is issued; or
(ii) in present value terms (see section 974-50 ) if the performance period must or may end more than 10 years after the interest arising from the scheme is issued; and
(b) the regulations may make provisions relating to the valuation of a financial benefit.
Assume scheme runs its full term
974-35(2)
The value of a *financial benefit received or provided under a *scheme is calculated assuming that the interest arising from the scheme will continue to be held for the rest of its life.
Note 1:
Section 974-40 makes specific provision for cases in which there is a right or option to terminate the interest early.
Note 2:
Section 974-45 makes specific provision for cases involving convertible interests.
Performance period
974-35(3)
The performance period is the period within which, under the terms on which the interest is issued, the *effectively non-contingent obligations of the issuer, and any *connected entity of the issuer, to provide a *financial benefit in relation to the interest have to be met.
974-35(4)
An obligation is treated as having to be met within 10 years after the interest is issued if:
(a) the issuer; or
(b) the *connected entity of the issuer;
has an *effectively non-contingent obligation to terminate the interest within that 10 year period even if the terms on which the interest is issued formally allow the obligation to continue after the end of that 10 year period.
Benefit dependent on variable factor
974-35(5)
If:
(a) a *financial benefit received or provided in respect of an interest depends on a factor that may vary over time (such as a variable interest rate); and
(b) that factor is one commonly used in commercial arrangements; and
(c) it would be unreasonable to expect any of the parties to the *scheme to know, or to anticipate accurately, the future value of that factor; and
(d) that factor has a particular value (the starting value ) when the scheme is entered into;
the value of the financial benefit is calculated assuming that the factor ' s value will retain the starting value for the whole of the life of the scheme.
Note:
For example, the value of a return based on a floating interest rate is calculated on the basis that the interest rate remains the interest rate that is applicable when the scheme is entered into.
Scheme wholly in foreign currency etc.
974-35(6)
If all the *financial benefits provided and received under a *scheme are denominated in a particular foreign currency or in terms of quantities of a particular commodity or other unit of account, they are not to be converted into Australian currency for the purpose of comparing their relative values for the purposes of this Subdivision.
This section deals with the situation in which a party to a *scheme has a right or option to terminate the scheme early (whether by discharging an obligation early, converting the interest arising from the scheme into another interest or otherwise).
Note 1:
An example of terminating a scheme early by discharging an obligation early is terminating a loan by discharging the obligation to repay the principal (and any outstanding interest) early.
Note 2:
In certain circumstances, conversion of an interest into another interest can terminate its life (see section 974-45 ).
974-40(2)
The existence of the right or option is to be disregarded in working out the length of the life of the interest arising from the *scheme for the purposes of this Subdivision if the party does not have an *effectively non-contingent obligation to exercise the right or option.
974-40(3)
If the party does have an *effectively non-contingent obligation to exercise the right or option, the life of the interest ends at the earliest time at which the party will have to exercise the right or option.
974-40(4)
This section does not limit subsection 974-35(2) .
SECTION 974-45 Valuation of financial benefits - convertible interests 974-45(1)
This section deals with the situation in which a *scheme gives rise to an *interest that will or may convert into an *equity interest in a company.
974-45(2)
The life of the interest ends no later than the time when it converts into that *equity interest.
974-45(3)
The possibility of the conversion is to be disregarded in working out the length of the life of the interest arising from the *scheme for the purposes of section 974-35 if it is uncertain:
(a) whether the interest will ever convert; or
(b) when the interest will convert.
Note:
Section 974-40 deals with the situation in which a party to the scheme may exercise a right or option to convert the interest.
974-45(4)
This section does not limit subsection 974-35(2) .
SECTION 974-50 Valuation of financial benefits - value in present value terms 974-50(1)
Subject to the regulations made for the purposes of subsection (5), the value in present value terms of a *financial benefit to be provided or received in respect of an interest (the test interest ) is calculated under subsection (4).
974-50(2)
If you need to calculate the values in present value terms of a number of *financial benefits, the value of each financial benefit is to be calculated separately.
974-50(3)
The value of a *financial benefit is to be calculated assuming that all amounts to be paid by an entity in respect of the test interest are paid at the earliest time when the entity becomes liable to pay them.
974-50(4)
The value of a *financial benefit in present value terms is:
|
Amount or value of *financial benefit in nominal terms
[ 1 + Adjusted benchmark rate of return ] n |
where:
adjusted benchmark rate of return
is 75% of the *benchmark rate of return on the test interest.
n
is the number of years in the period starting on the day on which the test interest is issued and ending on the day on which the *financial benefit is to be provided. If the period includes a part of a year, that part is to be expressed as the fraction:
|
Number of days in that period
Number of days in the year |
year
means a period of 12 months.
974-50(5)
The regulations may provide for the method of calculating the value in present value terms of a *financial benefit.
974-50(6)
Without limiting subsection (5), the regulations may:
(a) provide for an entirely different method of calculating the present value of the *financial benefit; or
(b) specify the adjusted *benchmark rate of return; or
(c) provide for a different method of determining the adjusted benchmark rate of return; or
(d) specify rules for determining whether a *debt interest is an *ordinary debt interest.
SECTION 974-55 The debt interest and its issue 974-55(1)
If a *scheme, or 2 or more *related schemes, give rise to a *debt interest in an entity, the debt interest:
(a) consists of the interest that carries the right to receive a *financial benefit that the entity or a *connected entity has an *effectively non-contingent obligation to provide under the scheme or any of the schemes; and
(b) is taken, subject to section 974-60 , to be a debt interest in the entity; and
(c) is taken to be issued by the entity; and
(d) is issued when the entity (or a connected entity of the entity) first receives a *financial benefit under the scheme or any of the schemes; and
(e) is on issue while an effectively non-contingent obligation of the entity (or a connected entity of the entity) to provide a financial benefit under the scheme or any of the schemes remains unfulfilled.
974-55(2)
The interest referred to in paragraph (1)(a) may take the form of a proprietary right, a chose in action or any other form.
SECTION 974-60 Debt interest arising out of obligations owed by a number of entities 974-60(1)
This section deals with the situation in which a *scheme, or a number of *related schemes together, would, apart from this section, give rise to the same *debt interest in 2 or more entities.
Note:
A scheme may give rise to the same debt interest in 2 or more entities if each of those entities has non-contingent obligations to provide financial benefits under the scheme.
974-60(2)
The *debt interest:
(a) is a debt interest in the entity identified under subsection (3) or (4); and
(b) is not a debt interest in the other entity or entities.
974-60(3)
The *debt interest is a debt interest in the entity identified using the following method statement: Method statement
Step 1.
Work out, for each of the entities, the total value of the *financial benefits that the entity is under an *effectively non-contingent obligation to provide under the *scheme or schemes: this is the entity's obligation value .
Step 2.
The *debt interest is taken to be a debt interest in the entity with the greatest obligation value.
Step 3.
If it is not possible to determine which entity has the greatest obligation value (whether because of an equality of, or uncertainty as to, obligation values or otherwise), the *debt interest is taken to be a debt interest in the entity agreed on by all the entities.
Step 4.
If the entities do not agree, the interest is taken to be a *debt interest in the entity determined by the Commissioner.
974-60(4)
Despite subsection (3), the Commissioner may determine that the *debt interest is a debt interest in the entity specified in the determination.
974-60(5)
The Commissioner may make the determination only if satisfied, having regard to the economic substance of the relevant transactions, that the *debt interest is properly considered from a commercial point of view to be an interest in the entity specified in the determination.
SECTION 974-65 Commissioner's power 974-65(1)
Despite subsection 974-20(1) (the debt test), the Commissioner may determine that a *scheme gives rise to a debt interest in an entity if the Commissioner considers that:
(a) the scheme would satisfy paragraphs 974-20(1)(a) , (b), (c) and (e); but
(b) instead of satisfying paragraph 974-20(1)(d) , the scheme would satisfy all the following subparagraphs:
(i) it is substantially more likely than not that the value of the *financial benefit to be provided by the entity (or a *connected entity of the entity) under the *effectively non-contingent obligation will be at least equal to the substantial part of the value of the financial benefit received or to be received by the entity (or its connected entity) under the scheme;
(ii) it is substantially more likely than not that other financial benefits will be provided by the entity (or its connected entity) to one or more entities under the scheme;
(iii) it is substantially more likely than not that the sum of the values of the financial benefits mentioned in subparagraphs (i) and (ii) will be at least equal to the value of the financial benefit received by the entity (or its connected entity) under the scheme.
974-65(2)
In making the determination, the Commissioner must have regard to the following:
(a) the difference between the value of the *financial benefit received and the value of the financial benefit to be provided under the *effectively non-contingent obligation;
(b) the degree of likelihood of other financial benefits being provided under the *scheme;
(c) the degree of likelihood of the sum of the value of the financial benefits mentioned in subparagraphs (1)(b)(i) and (ii) being equal to or greater than the value of the financial benefit received under the scheme;
(d) the particular circumstances surrounding the scheme (including circumstances of the parties to the scheme and their purposes for entering into the scheme).
974-65(3)
If the Commissioner determines under this section that a *scheme gives rise to a *debt interest, thescheme has that effect for all purposes of this Division.
Subdivision 974-C - Equity interests in companies SECTION 974-70 Meaning of equity interest in a company
Scheme giving rise to equity interest
974-70(1)
A *scheme gives rise to an equity interest in a company if, when the scheme comes into existence:
(a) the scheme satisfies the equity test in subsection 974-75(1) in relation to the company because of the existence of an interest; and
(b) the interest is not characterised as, and does not form part of a larger interest that is characterised as, a *debt interest in the company, or a *connected entity of the company, under Subdivision 974-B .
Note 1:
An equity interest can also arise under subsection (2) if a notional scheme with the combined effect of a number of related schemes would give rise to an equity interest under this subsection. To do this, the notional scheme would need to satisfy paragraph (b). This means that the related schemes will not give rise to an equity interest if the notional scheme would be characterised as (or form part of a larger interest that would be characterised as) a debt interest in the company or a connected entity.
Note 2:
An equity interest can also arise under section 974-80 (arrangements for funding return through connected entities).
Note 3:
Section 974-95 defines various aspects of the equity interest that arises.
Related schemes giving rise to equity interest
974-70(2)
Two or more *related schemes (the constituent schemes ) are taken together to give rise to an equity interest in a company if:
(a) the company enters into, participates in or causes another entity to enter into or participate in the constituent schemes; and
(b) a scheme with the combined effect or operation of the constituent schemes (the notional scheme ) would give rise to an *equity interest in the company under subsection (1) if the notional scheme came into existence when the last of the constituent schemes came into existence; and
(c) it is reasonable to conclude that the company intended, or knew that a party to the scheme or one of the schemes intended, the combined economic effects of the constituent schemes to be the same as, or similar to, the economic effects of an equity interest.
This is so whether or not the constituent schemes come into existence at the same time and even if none of the constituent schemes would individually give rise to that or any other equity interest.
Note:
Section 974-105 explains the effect, for tax purposes, of actions taken under the schemes.
974-70(3)
Subsection (2) does not apply if each of the constituent *schemes individually gives rise to an *equity interest in the company.
974-70(4)
Two or more related *schemes do not give rise to an *equity interest in a company under subsection (2) if the Commissioner determines that it would be unreasonable to apply that subsection to those schemes.
974-70(5)
Without limiting subsection 974-10(5) , the Commissioner must, in exercising the power to make a determination under subsection (4), have regard to the following:
(a) the purpose of the *schemes (considered both individually and in combination);
(b) the effects of the schemes (considered both individually and in combination);
(c) the rights and obligations of the parties to the schemes (considered both individually and in combination);
(d) whether the schemes (when considered either individually or in combination) provide the basis for, or underpin, an interest issued to investors with the expectation that the interest can be assigned to other investors;
(e) whether the schemes (when considered either individually or in combination) comprise a set of rights and obligations issued to investors with the expectation that it can be assigned to other investors;
(f) any other relevant circumstances.
SECTION 974-75 The test for an equity interest
Basic test for equity interest
974-75(1)
A *scheme satisfies the equity test in this subsection in relation to a company if it gives rise to an interest set out in the following table:
| Equity interests | ||
| Item | Interest | |
| 1 | An interest in the company as a member or stockholder of the company. | |
| 2 | An interest that carries a right to a variable or fixed return from the company if either the right itself, or the amount of the return, is in substance or effect *contingent on aspects of the economic performance (whether past, current or future) of: | |
| (a) | the company; or | |
| (b) | a part of the company ' s activities; or | |
| (c) | a *connected entity of the company or a part of the activities of a connected entity of the company. | |
| The return may be a return of an amount invested in the interest. | ||
| 3 | An interest that carries a right to a variable or fixed return from the company if either the right itself, or the amount of the return, is at the discretion of: | |
| (a) | the company; or | |
| (b) | a *connected entity of the company. | |
| The return may be a return of an amount invested in the interest. | ||
| 4 | An interest issued by the company that: | |
| (a) | gives its holder (or a *connected entity of the holder) a right to be issued with an *equity interest in the company or a *connected entity of the company; or | |
| (b) | is an *interest that will, or may, convert into an equity interest in the company or a connected entity of the company. |
This subsection has effect subject to subsection (2) (requirement for financing arrangement).
Note:
Section 974-90 allows regulations to be made clarifying when a right or return is taken to be at discretion of a company or connected entity.
Financing arrangement
974-75(2)
A *scheme that would otherwise give rise to an *equity interest in a company because of an item in the table in subsection (1) (other than item 1) does not give rise to an equity interest in the company unless the scheme is a *financing arrangement for the company.
Form interest may take
974-75(3)
The interest referred to in item 2, 3 or 4 in the table in subsection (1) may take the form of a proprietary right, a chose in action or any other form.
Exception for certain at call loans - until 30 June 2005
974-75(4)
If:
(a) a *financing arrangement takes the form of a loan to a company by a *connected entity; and
(b) the loan does not have a fixed term; and
(c) either:
(i) the loan is repayable on demand made by the connected entity, and repayment is required immediately on the making of the demand, or is required at the end of a particular period after the demand is made (being a period that is not longer than is reasonably necessary to arrange repayment); or
(ii) the loan is repayable on the death of the connected entity (if the connected entity is an individual); and
(d) the arrangement was entered into on or before 30 June 2005;
the arrangement does not give rise to an equity interest in the company. Instead, the arrangement is taken, despite anything in Subdivision 974-B , to give rise to a debt interest in the company. This subsection ceases to have effect on 1 July 2005.
Note:
If this subsection ceases to have effect in relation to an interest that is, according to the other provisions of this Division, an equity interest immediately after the cessation, an adjustment to the company ' s non-share capital account will occur at that time (see subsection 164-15(2) ).
974-75(5)
If, while subsection (4) applies to a *financing arrangement, a circumstance occurs that would otherwise have attracted the operation of subsection 974-110(1) or (2) in relation to the arrangement:
(a) that subsection of section 974-110 does not apply to change the result that subsection (4) of this section produces in relation to the arrangement; but
(b) for the purpose of applying this Division in relation to the arrangement after subsection (4) of this section has ceased to have effect, that subsection of section 974-110 is taken to have produced the result that it would have produced if subsection (4) of this section had not applied to the arrangement.
Further exception for certain related party at call loans
974-75(6)
In applying this Division in relation to a particular *scheme and a particular income year (which may be the income year in which the scheme is entered into or a later income year), the scheme is taken not to give rise to an equity interest in a company, and instead to give rise to a debt interest in the company, if:
(a) the scheme takes the form of a loan to the company that satisfies paragraphs (4)(a), (b) and (c); and
(b) the company ' s *GST turnover (worked out at the end of the income year) is less than $20,000,000.
Note:
If this subsection does not apply in relation to the previous income year or the next income year, and the scheme gives rise to an equity interest according to the other provisions of this Division, an adjustment to the company ' s non-share capital account will occur at the end of the previous income year or the start of the next income year (see subsections 164-15(2) and 164-20(3) ).
974-75(7)
For the purpose of paragraph (6)(b), the question whether a company ' s *GST turnover (worked out at the end of an income year) is less than $20,000,000 is to be determined in accordance with subsection 188-10(2) of the *GST Act, as if that amount of $20,000,000 were a turnover threshold for the purposes of that subsection of the GST Act.
SECTION 974-80 Equity interest arising from arrangement funding return through connected entities 974-80(1)
This section deals with the situation in which:
(a) an interest carries a right to a variable or fixed return from a company; and
(b) the interest is held by a *connected entity of the company; and
(c) apart from this section, the interest would not be an *equity interest in the company; and
(ca) the *scheme that gives rise to the interest is a *financing arrangement for the company; and
(d) there is a scheme, or a series of schemes, designed to operate so that the return to the connected entity is to be used to fund (directly or indirectly) a return to another person (the ultimate recipient ).
974-80(2)
The interest is an equity interest in the company if:
(a) the amount of the return to the ultimate recipient is in substance or effect *contingent on aspects of the economic performance (whether past, current or future) of:
(i) the company; or
(ii) a part of the company's activities; or
(iii) a *connected entity of the company or a part of the activities of a connected entity of the company; or
(b) either the right itself, or the amount of the return to the ultimate recipient, is at the discretion of:
(i) the company; or
(ii) a connected entity of the company; or
(c) the interest in respect of which the return to the ultimate recipient is made or another interest that arises from the scheme, or any of the schemes, referred to in paragraph (1)(d):
(i) gives the ultimate recipient (or a connected entity of the ultimate recipient) aright to be issued with an *equity interest in the company or a connected entity of the company; or
(ii) is an *interest that will, or may, convert into an equity interest in the company or a connected entity of the company;
and if the interest does not form part of a larger interest that is characterised as a *debt interest in the entity in which it is held, or a *connected entity, under Subdivision 974-B . The return may be a return of an amount invested in the interest.
Note 1:
Section 974-90 allows regulations to be made clarifying when a right or return is taken to be at the discretion of a company or connected entity.
Note 2:
Paragraphs (a), (b) and (c) parallel items 2, 3 and 4 of the table in subsection 974-75(1) .
Example:
Company A, Company B1, Company B2 and Company B3 are connected entities.
Company B1 operates Trust Fund C. An interest in Trust Fund C is issued to person H and the return on that interest is contingent on aspects of the economic performance of Company A.
Trust Fund C lends the money paid by H for the purchase of the interest to Company B1 which lends the money to Company B2 which lends the money to Company B3 which lends the money to Company A.
Under the arrangements under which the interest is issued and the loans made, payments of interest by Company A on the loan that Company B3 makes to Company A are intended to pass back through Company B2 and Company B1 to fund the return on H's interest in Trust Fund C.
Under subsection (2), Company B3 will have an equity interest in Company A. If the return to Company B3 were itself contingent on Company A's performance, Company B3's interest would be an equity interest in Company A under item 2 of the table in subsection 974-75(1) (and not under subsection (2) of this section).
Company B2 has an equity interest in Company B3 and Company B1 has an equity interest in Company B2. This is because the returns they get are intended to fund the return on H's interest in Trust Fund C and that return is contingent on aspects of the economic performance of Company A (which is related to both Company B3 and Company B2).
974-80(3)
The interest referred to in paragraph (1)(a) or (2)(c) may take the form of a proprietary right, a chose in action or any other form.
SECTION 974-85 Right or return contingent on aspects of economic performance 974-85(1)
A right, or the amount of a return, is contingent on aspects of the economic performance of an entity, or a part of the entity ' s activities, if the right or return is contingent on the economic performance of that entity, or that part of those activities, but not solely because of one of the following:
(a) the ability or willingness of an entity to meet the obligation to satisfy the right to the return;
(b) the receipts or turnover of the entity or the turnover generated by those activities.
974-85(2)
The regulations may specify circumstances in which a right or return is to be taken to be contingent, or not contingent, on aspects of the economic performance of an entity or a part of an entity ' s activities.
974-85(3)
The regulations may provide that paragraph (1)(b) does not apply in the circumstances specified in the regulations.
974-85(4)
The regulations may provide that an interest that:
(a) is covered by item 2 in the table in subsection 974-75(1) or paragraph 974-80(2)(a) ; and
(b) arises in the circumstances specified in the regulations;
is not an equity interest because of:
(c) the limited extent to which the right or return that the interest carries is *contingent on aspects of the economic performance of an entity or a part of the entity ' s activities; or
(d) the practical insignificance of the right or return that the interest carries being contingent on that performance.
The regulations may specify circumstances in which a right, or the amount of a return, is to be taken to be at the discretion of a company or a *connected entity of the company.
If a *scheme gives rise to an *equity interest in a company because of an item of the table in subsection 974-75(1) , the equity interest consists of the interest referred to in that item.
974-95(2)
If 2 or more *related schemes give rise to an *equity interest in a company because of an item of the table in subsection 974-75(1) , the equity interest consists of the combination of interests under the schemes that satisfy the requirements of that item.
974-95(3)
Subsection 974-80(2) also provides that certain interests are *equity interests in a company.
974-95(4)
If the returns on a *non-share equity interest in a company are payable to 2 or more entities:
(a) each entity is taken to be the holder of a non-share equity interest in the company; and
(b) each entity's non-share equity interest consists of the interests that:
(i) constitute the non-share equity interest; and
(ii) are held by that entity.
974-95(5)
The company in which an *equity interest exists is taken to be the issuer of the interest.
Subdivision 974-D - Common provisions
If a *debt interest is an *interest that will or may convert into an *equity interest, the conversion is taken, for the purposes of this Division to give rise to a new interest (and is not treated merely as a continuation of the debt interest).
974-100(2)
If an *equity interest is an *interest that will or may convert into a *debt interest, the conversion is taken, for the purposes of this Division to give rise to a new interest (and is not treated merely as a continuation of the equity interest).
SECTION 974-105 Effect of action taken in relation to interest arising from related schemes 974-105(1)
If:
(a) a *scheme, or schemes, give rise to a *debt interest in an entity or an *equity interest in a company; and
(b) the entity or company pays a return, or undertakes any other transaction, in respect of any of the following (the component element ):
(i) the scheme; or
(ii) a part of the scheme; or
(iii) one of those schemes; or
(iv) a part of one of those schemes;
then, for the purposes of the provisions that subsection (2) covers, the return is taken to be paid, or the transaction to have been undertaken, in respect of the debt interest or equity interest and not in respect of the component element.
Example:
Company A issues a convertible note to Company B. Company C, a connected entity of Company B, provides a binding collateral undertaking to Company A that Company B will exercise the option to convert the note into shares in Company A. The convertible note and the undertaking are related schemes that may give rise to an equity interest in Company A if their combined effect satisfies section 974-70 . If so, the returns on the note are taken to be returns in respect of the equity interest.
974-105(2)
This subsection covers:
(a) the provisions of this Division (other than this section); and
(b) any other provision of this Act whose operation depends on an expression whose meaning is given by this Division.
SECTION 974-110 Effect of material change
Change to existing scheme - general rule
974-110(1)
If:
(a) a *scheme or schemes give rise to a *debt interest (or an *equity interest) in a company; and
(b) the scheme, or one or more of the schemes, are subsequently changed, including where one or more (but not all) of the schemes cease to exist; and
(c) the scheme or schemes as they exist immediately after the change would give rise to an equity interest (or a debt interest) in the company if they came into existence when the change occurred; and
(d) subsection (1A) does not apply to the change;
this Division applies after the change as if the scheme or schemes as they exist immediately after the change came into existence when the change occurred.
Note 1:
This will mean that the characterisation of the interest will change at that time.
Note 2:
This section can apply to an interest a number of times so that, for example, an interest that is equity when issued may change to debt because of one subsequent change and then back to equity because of a later change.
Note 3:
There will be an adjustment to the company ' s non-share capital account when the change occurs (see subsections 164-15(2) and 164-20(3) ).
Change to existing scheme - special rule for changing a related party at call etc. loan to a private company from equity to debt
974-110(1A)
If:
(a) a *scheme takes the form of a loan that satisfies paragraphs 974-75(4)(a), (b) and (c) ; and
(b) the scheme gives rise to an *equity interest (disregarding the effect this subsection has on the characterisation of the interest because of the change referred to in paragraph (c) of this subsection); and
(c) the scheme is subsequently changed; and
(d) the change occurs in the period starting immediately after the end of a particular income year (the year of effect ) and ending at the end of the earlier of the following days:
(i) the due date for lodgment of the company ' s *income tax return for the year of effect;
(ii) the date of lodgment of the company ' s income tax return for the year of effect; and
(e) the scheme, as it exists immediately after the change, would give rise to a *debt interest in the company if the interest came into existence when the change occurred; and
(f) the company is a *private company in relation to the year of effect; and
(g) subsection 974-75(6) does not apply in relation to the loan and the year of effect; and
(h) the company elects that this subsection is to apply to the change;
this Division applies as if the scheme, as it exists immediately after the change, had come into existence at the start of the year of effect, and as if no other change of a kind referred to in subsection (1) had occurred in relation to the interest in the period commencing at the start of the year of effect and ending when the first-mentioned change was made.
Note 1:
This will mean that:
Note 2:
This section can apply to an interest a number of times so that, for example, an interest that is an equity interest when issued may change to debt because of one subsequent change and then back to equity because of a later change.
Note 3:
An adjustment to the company ' s non-share capital account will be taken to have occurred at the start of the year of effect (see subsection 164-20(3) ).
974-110(1B)
An election for the purposes of paragraph (1A)(h):
(a) must be in writing; and
(b) can only be made in the period referred to in paragraph (1A)(d); and
(c) cannot be revoked.
Entering into a new related scheme
974-110(2)
If:
(a) a *scheme or schemes give rise to a *debt interest (or an *equity interest) in a company; and
(b) the company subsequently enters into, participates in or causes another entity to enter into or participate in a new *related scheme; and
(c) the scheme or schemes, together with:
(i) the new related scheme; and
would give rise to an equity interest (or a debt interest) in the company if they all came into existence when the new related scheme is entered into;
(ii) any other related scheme that the entity (or company) enters into, participates in or causes another entity to enter into or participate in before the new related scheme is entered into;
this Division applies after the new related scheme is entered into as if all the schemes referred to in paragraph (c) had come into existence when the new related scheme is entered into.
Note 1:
This will mean that the characterisation of the interest will change at that time.
Note 2:
This section can apply to an interest a number of times so that, for example, an interest that is equity when issued may change to debt because of one subsequent change and then back to equity because of a later change.
Note 3:
There will be an adjustment to the company ' s non-share capital account when the change occurs (see subsections 164-15(2) and 164-20(3) ).
All prior changes to be taken into account
974-110(3)
In applying paragraphs (1)(c), (1A)(e) and (2)(c) to the *scheme or schemes, take into account:
(a) all changes to the scheme or schemes that occur before the change or before the new related scheme is entered into; and
(b) all *related schemes entered into before the change or before the new related scheme is entered into; and
(c) all changes to related schemes referred to in paragraph (b) that occur before the change or before the new related scheme is entered into.
SECTION 974-112 Determinations by Commissioner
Determinations covered by this section
974-112(1)
This section covers a determination by the Commissioner under any of the following provisions:
(a) subsection 974-15(4) ;
(b) subsection 974-60(3) , (4) or (5);
(c) section 974-65 ;
(d) subsection 974-70(4) ;
(e) subsection 974-150(1) .
Determination on own initiative or on application
974-112(2)
The Commissioner may make a determination covered by this section:
(a) on his or her own initiative; or
(b) on an application made under subsection (3).
Application for determination
974-112(3)
An entity may apply to the Commissioner for a determination covered by this section in relation to:
(a) an interest of which the entity is the issuer; or
(b) an interest of which the entity would be the issuer:
(i) if the determination were made; or
(ii) if the determination were not made.
Note:
Paragraph (b) may apply, for example, if the effect of the determination applied for would be to allow, or to prevent, a number of related schemes giving rise to a debt interest or an equity interest.
974-112(4)
The application:
(a) must be in writing; and
(b) must set out the grounds on which the applicant thinks the determination should be made; and
(c) must set out any information relevant to deciding whether to make the determination.
Review of determinations
974-112(5)
A taxpayer who is dissatisfied with a determination covered by this section may object against the determination in the manner set out in Part IVC of the Taxation Administration Act 1953 .
Subdivision 974-E - Non-share distributions by a company
A company makes a non-share distribution to you if:
(a) you hold a *non-share equity interest in the company; and
(b) the company:
(i) distributes money to you; or
(ii) distributes other property to you; or
as the holder of that interest.
(iii) credits an amount to you;
Subject to subsection (2), all *non-share distributions are non-share dividends .
974-120(2)
A *non-share distribution is not a non-share dividend to the extent to which the company debits the distribution against:
(a) the company's *non-share capital account; or
(b) the company's *share capital account.
SECTION 974-125 974-125 Meaning of non-share capital return
A non-share capital return is a *non-share distribution to the extent to which it is not a *non-share dividend.
A *scheme is a financing arrangement for an entity if it is entered into or undertaken:
(a) to raise finance for the entity (or a *connected entity of the entity); or
(b) to fund another scheme, or a part of another scheme, that is a *financing arrangement under paragraph (a); or
(c) to fund a return, or a part of a return, payable under or provided by or under another scheme, or a part of another scheme, that is a financing arrangement under paragraph (a).
974-130(2)
The following are examples of *schemes that are generally entered into or undertaken to raise finance:
(a) a bill of exchange;
(b) income securities;
(c) a *convertible interest that will convert into an *equity interest.
Note:
Paragraph (a) is likely to be relevant for debt interests, paragraph (b) for equity interests and paragraph (c) for both.
974-130(3)
The following are examples of *schemes that are generally not entered into or undertaken to raise finance:
(a) a derivative that is used solely for managing financial risk;
(b) a contract for personal services entered into in the ordinary course of a business.
Note:
These may be relevant for both debt interests and equity interests.
974-130(4)
For the purposes of subsection (1), the following *schemes are taken not to be entered into or undertaken to raise finance:
(a) a lease or bailment that satisfies all of the following:
(i) the property leased or bailed is not property to which Division 16D of Part III of the Income Tax Assessment Act 1936 (arrangements relating to the use of property) applies;
(ii) the lease or bailment is not a relevant agreement for the purposes of section 128AC of that Act (deemed interest in respect of hire-purchase and certain other arrangements);
(iii) the lease or bailment is not an *arrangement to which Division 240 of this Act (about arrangements treated as a sale and loan), or Division 242 of this Act (about luxury car leases), applies;
(iv) (Repealed by No 79 of 2010 )
(v) the lessee or bailee, or a *connected entity of the lessee or bailee, is not to, and does not have an obligation (whether contingent or not) or a right to, acquire the leased or bailed property;
(vi) Division 250 of this Act does not apply to a person and the property leased or bailed;
(b) a securities lending arrangement under section 26BC of the Income Tax Assessment Act 1936 ;
(c) a life insurance or general insurance contract undertaken as part of the issuer ' s ordinary course of business;
(d) a scheme for the payment of royalties (within the meaning of the Income Tax Assessment Act 1936 ) other than:
(i) a qualifying arrangement for the purposes of Division 16D of Part III of the Income Tax Assessment Act 1936 ; or
(ii) a relevant agreement for the purposes of section 128AC of that Act; or
(iii) a scheme or arrangement for the payment of royalties in relation to an asset if Division 250 of this Act applies to a person and the asset.
974-130(5)
The regulations may:
(a) specify that particular *schemes are not financing arrangements ; and
(b) specify circumstances in which a scheme will not be a financing arrangement .
SECTION 974-135 Effectively non-contingent obligation 974-135(1)
There is an effectively non-contingent obligation to take an action under a *scheme if, having regard to the pricing, terms and conditions of the scheme, there is in substance or effect a non-contingent obligation (see subsections (3) , (4) and (6) ) to take that action.
974-135(2)
Without limiting subsection (1) , that subsection applies to: (a) providing a *financial benefit under the *scheme; or (b) terminating the scheme.
974-135(3)
An obligation is non-contingent if it is not contingent on any event, condition or situation (including the economic performance of the entity having the obligation or a *connected entity of that entity), other than the ability or willingness of that entity or connected entity to meet the obligation.
974-135(4)
The existence of the right of the holder of an *interest that will or may convert into an *equity interest in a company to convert the interest does not of itself make the issuer's obligation to repay the investment not non-contingent.
974-135(5)
An obligation to redeem a preference share is not contingent merely because there is a legislative requirement for the redemption amount to be met out of profits or a fresh issue of *equity interests.
974-135(6)
In determining whether there is in substance or effect a non-contingent obligation to take the action, have regard to the artificiality, or the contrived nature, of any contingency on which the obligation to take the action depends.
Note:
The artificiality, or the contrived nature, of a contingency would tend to indicate that there is, in substance or effect, a non-contingent obligation to take that action.
974-135(7)
An obligation of yours is not effectively non-contingent merely because you will suffer some detrimental practical or commercial consequences if you do not fulfil the obligation.
Note:
For example, a contingent obligation to make payments in respect of an income security issued by an approved deposit-taking institution (ADI) is not effectively non-contingent merely because of the detrimental effect non-payment would have on the ADI's business.
974-135(8)
The regulations may make further provisions relating to the following: (a) what constitutes a non-contingent obligation; (b) what does not constitute a non-contingent obligation; (c) what constitutes an *effectively non-contingent obligation; (d) what does not constitute an effectively non-contingent obligation.
SECTION 974-140 Ordinary debt interest 974-140(1)
A *debt interest arising from a scheme is an ordinary debt interest if none of the obligations under the scheme is in substance or effect *contingent on aspects of the economic performance of:
(a) the issuer of the interest; or
(b) a *connected entity; or
(c) a part of the operations of the issuer or a connected entity.
974-140(2)
The regulations may specify rules for determining whether a *debt interest is an *ordinary debt interest.
The benchmark rate of return for an interest (the test interest) in an entity is the annually compounded internal rate of return on an *ordinary debt interest that:
(a) is issued, immediately before the test interest is issued, by the entity, or an equivalent entity, to an entity that is not a *connected entity; and
(b) has a comparable maturity date; and
(c) is in the same currency; and
(d) is issued in the same market; and
(e) has the same credit status; and
(f) has the same degree of subordination to debts owed to the ordinary creditors of the issuer.
974-145(2)
If there is no interest that satisfies subsection (1), the benchmark rate of return for the test interest is the annually compounded internal rate of return on an interest that is closest to the test interest in the respects referred to in that subsection (adjusted appropriately to take account of the differences between that interest and the test interest).
974-145(3)
The regulations may:
(a) specify the meaning to be given to an expression used in this section; or
(b) provide for a different method of determining the *benchmark rate of return.
SECTION 974-150 Schemes 974-150(1)
The Commissioner:
(a) may determine that what would otherwise be a single *scheme is to be treated for the purposes of this Division as 2 or more separate schemes; and
(b) may determine that the schemes are to be taken for the purposes of this Division to not be *related schemes.
974-150(2)
Without limiting subsection 974-10(5) , the Commissioner must, in exercising the power to make a determination under subsection (1), have regard to the following:
(a) the purpose of the *scheme (considered both as a whole and in terms of its individual components);
(b) the effects of the scheme and each of its components (considered both as a whole and in terms of its individual components);
(c) the rights and obligations of the parties to the scheme (considered both as a whole and in relation to its individual components);
(d) whether the scheme (when considered as a whole or in terms of its individual components) provides the basis for, or underpins, an interest issued to investors with the expectation that the interest can be assigned to other investors;
(e) whether the scheme (when considered as a whole or in terms of its individual components) comprises a set of rights and obligations issued to investors with the expectation that it can be assigned to other investors;
(f) any other relevant circumstances.
974-150(3)
The regulations:
(a) may provide that, in the circumstances specified in the regulations, what would otherwise be a single *scheme is to be treated for the purposes of this Division as 2 or more separate schemes; and
(b) may provide that the schemes are to be taken for the purposes of this Division to not be *related schemes.
SECTION 974-155 Related schemes 974-155(1)
Subject to subsection (3), 2 *schemes are related to one another if they are related to one another in any way.
974-155(2)
Without limiting subsection (1), 2 *schemes are related to each other if:
(a) the schemes are based on stapled instruments; or
(b) one of the schemes would, from a commercial point of view, be unlikely to be entered into unless the other scheme was entered into; or
(c) one of the schemes depends for its effect on the operation of the other scheme; or
(d) one scheme complements or supplements the other; or
(e) there is another scheme to which both the schemes are related because of a previous application or applications of this subsection.
974-155(3)
Two *schemes are not related to one another merely because:
(a) one refers to the other; or
(b) they have a common party.
974-155(4)
The regulations may specify circumstances in which 2 *schemes:
(a) are taken to be related to one another; or
(b) are taken not to be related to one another.
SECTION 974-160 Financial benefit 974-160(1)
In this Act:
(a) means anything of economic value; and
(b) includes property and services; and
(c) includes anything that regulations made for the purposes of subsection (3) provide is a financial benefit;
even if the transaction that confers the benefit on an entity also imposes an obligation on the entity.
974-160(2)
In applying subsection (1), benefits and obligations are to be looked at separately and not set off against each other.
974-160(3)
The regulations may provide that a thing specified in the regulations is a financial benefit for the purposes of this Act.
SECTION 974-165 974-165 Convertible and converting interests
An interest (the first interest ) is an interest that will or may convert into another interest (the second interest ) if:
(a) the first interest, or a part of the first interest, must be or may be converted into the second interest; or
(b) the first interest, or a part of the first interest, must be or may be redeemed, repaid or satisfied by:
(i) the issue or transfer of the second interest (whether to the holder of the first interest or to some other person); or
(ii) the acquisition of the second interest (whether by the holder of the first interest or by some other person); or
(iii) the application in or towards paying-up (in whole or in part) the balance unpaid on the second interest (whether the second interest is to be issued to the holder of the first interest or to some other person); or
(c) the holder of the first interest has, or is to have, a right or option to have allotted or transferred to the holder or to some other person, or for the holder or some other person otherwise to acquire:
(i) the second interest; or
(ii) a right or option to acquire the second interest.
(Repealed by No 41 of 2005)
A person is in a position to affect rights of a company in relation to another company if the person has a right, power or option:
(a) to acquire those rights from one or other of those companies; or
(b) to do something that would prevent one or other of those companies from exercising its rights for its own benefit, or from receiving any benefit arising from having those rights.
975-150(2)
It does not matter whether the person has the right, power or option because of the *constitution of one or other of those companies, any agreement or otherwise.
975-150(3)
However, the right, power or option of an owner of *ownership interests in the *head entity of a *demerger group to *acquire, under a *demerger, ownership interests in the *demerged entity is not a right, power or option covered by subsection (1).
SECTION 975-155 975-155 When is an entity a controller (for CGT purposes) of a company?
An entity (the first entity ) is a controller (for CGT purposes) of a company if:
(a) the first entity has an *associate-inclusive control interest in the company of at least 50%; or
(b) the first entity has an associate-inclusive control interest in the company of at least 40% and entities other than the first entity or associates of the first entity do not control the company; or
(c) the first entity controls the company (alone or with an *associate).
An entity has an associate-inclusive control interest in a company in the circumstances set out in Subdivision A of Division 3 of Part X of the Income Tax Assessment Act 1936 .
975-160(2)
However, in working out whether an entity has an associate-inclusive control interest of a particular percentage for the purposes of section 975-155 , there are these modifications to the way Part X of that Act operates:
(a) that Part is applied to any company, including one acting as a trustee; and
(b) subsection 349(4) applies in all cases in working out which entity holds a direct control interest or a control tracing interest equal to 100%; and
(c) subsections 350(6) and (7) and 355(1) are ignored; and
(d) despite subsection 352(2) , an interposed entity may be taken into account in calculating an indirect control interest if the interposed entity is:
(i) a company of which the first entity or an *associate is a controller; or
(ii) a partnership or a trust; and
(e) section 354 applies as if it referred to partnerships rather than CFP ' s; and
(f) section 355 applies as if it referred to trusts rather than CFT ' s.
Note 1:
Part X of the Income Tax Assessment Act 1936 defines company to exclude a company in the capacity of a trustee.
Note 2:
The terms direct control interest and control tracing interest are relevant to working out associate-inclusive control interests in a company: see sections 350 , 351 , 353 , 354 and 355 of that Act.
Note 3:
Under subsection 349(4) of that Act, if 2 or more entities would have a direct control interest or a control tracing interest in a company or trust equal to 100%, only one of them holds the interest.
Note 4:
Subsections 350(6) and (7) of that Act deal with direct control interests in a company. They deal with interests held by Australian entities. Under subsection 355(1) , certain entities are taken to hold a control tracing interest in a trust equal to 100%.
Note 5:
Paragraphs (2)(d), (e) and (f) of this section are necessary because Part X of the Income Tax Assessment Act 1936 applies only to CFE ' s (which comprise CFC ' s, CFP ' s and CFT ' s).
Subdivision 975-G - What is a company ' s share capital account?
A company ' s share capital account is:
(a) an account that the company keeps of its share capital; or
(b) any other account (whether or not called a share capital account) that satisfies the following conditions:
(i) the account was created on or after 1 July 1998;
(ii) the first amount credited to the account was an amount of share capital.
975-300(2)
If a company has more than one account covered by subsection (1), the accounts are taken, for the purposes of this Act, to be a single account.
Note:
Because the accounts are taken to be a single account (the combined share capital account ), tainting of any of the accounts has the effect of tainting the combined share capital account.
975-300(3)
However, if a company ' s *share capital account is *tainted, that account is taken not to be a share capital account for the purposes this Act, other than:
(a) subsection 118-20(6) ; and
(b) Division 197 ; and
(ba) paragraph 202-45(e) ; and
(c) the definition of paid-up share capital in subsection 6(1) of the Income Tax Assessment Act 1936 ; and
(d) subsection 44(1B) of the Income Tax Assessment Act 1936 ; and
(e) (Repealed by No 79 of 2007 )
(f) subsection 159GZZZQ(5) of the Income Tax Assessment Act 1936 .
Subdivision 975-W - Wholly-owned groups of companies SECTION 975-500 975-500 Wholly-owned groups
Two companies are members of the same wholly-owned group if:
(a) one of the companies is a *100% subsidiary of the other company; or
(b) each of the companies is a *100% subsidiary of the same third company. SECTION 975-505 What is a 100% subsidiary? 975-505(1)
A company (the subsidiary company ) is a 100% subsidiary of another company (the holding company ) if all the *shares in the subsidiary company are beneficially owned by:
(a) the holding company; or
(b) one or more 100% subsidiaries of the holding company; or
(c) the holding company and one or more 100% subsidiaries of the holding company.
975-505(2)
However, the subsidiary company is not a 100% subsidiary of the holding company if a person is *in a position to affect rights, in relation to the subsidiary company, of:
(a) the holding company; or
(b) a 100% subsidiary of the holding company.
975-505(3)
The subsidiary company is also not a 100% subsidiary of the holding company if at some future time a person will be *in a position to affect rights as described in subsection (2).
975-505(4)
A company (other than the subsidiary company) is a 100% subsidiary of the holding company if, and only if:
(a) it is a 100% subsidiary of the holding company; or
(b) it is a 100% subsidiary of a 100% subsidiary of the holding company;
because of any other application or applications of this section.
Division 976 - Imputation
The franked part of a *distribution is an amount worked out using the formula:
| *Franking credit on the distribution | × | Applicable gross-up rate |
where:
applicable gross-up rate
means the *corporate tax gross-up rate of the entity making the distribution for the income year in which the distribution is made.
The unfranked part of a *distribution is the amount that is left after deducting the *franked part of the distribution from the total distribution.
The part of a distribution that is franked with an exempting credit is worked out using the formula:
| *Exempting credit on the distribution | × | Applicable gross-up rate |
where:
applicable gross-up rate
means the *corporate tax gross-up rate of the entity making the distribution for the income year in which the distribution is made.
The part of a distribution that is franked with a venture capital credit is worked out using the formula:
| *Venture capital credit on the distribution | × | Applicable gross-up rate |
where:
applicable gross-up rate
means the *corporate tax gross-up rate of the entity making the distribution for the income year in which the distribution is made.
For a *CGT asset, a realisation event is a *CGT event (except CGT event E4, CGT event E10 and CGT event G1).
A loss is realised for income tax purposes by a *realisation event that happens to a *CGT asset if, and only if, an entity makes a *capital loss from the event. That capital loss is the loss realised by the event.
977-10(2)
If a provision of this Act reduces the loss that would, apart from that provision, be *realised for income tax purposes by the event, the *capital loss is reduced by the same amount.
SECTION 977-15 Gain realised for income tax purposes 977-15(1)
A gain is realised for income tax purposes by a *realisation event that happens to a *CGT asset if, and only if, an entity makes a *capital gain from the event. That capital gain is the gain that is realised by the event.
977-15(2)
If a provision of this Act reduces the gain that would, apart from that provision, be *realised for income tax purposes by the event, the *capital gain is reduced by the same amount.
Trading stock SECTION 977-20 977-20 Realisation event
For an item of *trading stock, a realisation event is a disposal of the item or the ending of an income year.
A loss is realised for income tax purposes by a *realisation event consisting of disposal of an item of *trading stock if, and only if:
(a) the item is disposed of, for less than its *cost, in the same income year in which it became part of the trading stock on hand of the entity disposing of it; or
(b) the item is disposed of in a later income year for less than its *value as trading stock of the entity on hand at the start of the later income year.
977-25(2)
The loss that is realised for income tax purposes by the event is the difference between the amount included in the entity's assessable income because of the disposal and:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as *trading stock on hand at the start of the later income year;
as appropriate.
977-25(3)
If a provision of this Act reduces the loss that would, apart from that provision, be *realised for income tax purposes by the event:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as *trading stock on hand at the start of the later income year;
as appropriate, is reduced by the same amount.
A loss is realised for income tax purposes by a *realisation event that happens to an item of *trading stock and consists of the ending of an income year if, and only if, the *value of the item, as trading stock of an entity on hand at the end of that income year, is less than:
(a) its *cost, if it became part of the trading stock on hand of the entity during that income year; or
(b) otherwise, its value as trading stock of the entity on hand at the start of that income year.
977-30(2)
The loss that is realised for income tax purposes by the event is the difference between the *value of the item, as *trading stock of the entity on hand at the end of that income year and:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as trading stock on hand at the start of the income year;
as appropriate.
977-30(3)
If a provision of this Act reduces the loss that would, apart from that provision, be *realised for income tax purposes by the event:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as *trading stock on hand at the start of the income year;
as appropriate, is reduced by the same amount.
SECTION 977-35 Disposal of trading stock: gain realised for income tax purposes 977-35(1)
A gain is realised for income tax purposes by a *realisation event consisting of disposal of an item of *trading stock if, and only if:
(a) the item is disposed of, for more than its *cost, in the same income year in which it became part of the trading stock on hand of the entity disposing of it; or
(b) the item is disposed of in a later income year for more than its *value as trading stock of the entity on hand at the start of the later income year.
977-35(2)
The gain that is realised for income tax purposes by the event is the difference between the amount included in the entity's assessable income because of the disposal and:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as *trading stock on hand at the start of the later income year;
as appropriate.
977-35(3)
If a provision of this Act reduces the gain that would, apart from that provision, be *realised for income tax purposes by the event, the amount that is included in the assessable income of the entity because of the disposal is reduced by the same amount.
SECTION 977-40 Ending of an income year: gain realised for income tax purposes 977-40(1)
A gain is realised for income tax purposes by a *realisation event that happens to an item of *trading stock and consists of the ending of an income year if, and only if, the *value of the item, as trading stock of an entity on hand at the end of that income year, is greater than:
(a) its *cost, if it became part of the trading stock on hand of the entity during that income year; or
(b) otherwise, its value as trading stock of the entity on hand at the start of that income year.
977-40(2)
The gain that is realised for income tax purposes by the event is the difference between the *value of the item, as *trading stock of the entity on hand at the end of that income year and:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as trading stock on hand at the start of the income year;
as appropriate.
977-40(3)
If a provision of this Act reduces the gain that would, apart from that provision, be *realised for income tax purposes by the event:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as *trading stock on hand at the start of the income year;
as appropriate, is increased by the same amount.
Revenue assets SECTION 977-50 977-50 Meaning of revenue asset
A *CGT asset is a revenue asset if, and only if:
(a) the profit or loss on your disposing of the asset, ceasing to own it, or otherwise realising it, would be taken into account, in calculating your assessable income or *tax loss, otherwise than as a *capital gain or *capital loss; and
(b) the asset is neither *trading stock nor a *depreciating asset.
For a *revenue asset:
(a) disposing of, ceasing to own, or otherwise realising, the asset is a realisation event ; and
(b) a loss is realised for income tax purposes by the *realisation event if, and only if, there is a loss on the event; and
(c) a gain is realised for income tax purposes by the realisation event if, and only if, there is a profit on the event; and
(d) the loss or profit on the event is the loss or gain realised for income tax purposes; and
(e) if a provision of this Act reduces the loss or gain that would, apart from that provision, be realised for income tax purposes by the event, the loss or profit to be taken into account in calculating your assessable income or *tax loss is reduced by the same amount.
A dwelling is used to provide affordable housing if certain conditions are met, including that the dwelling is tenanted or available to be tenanted, and that tenancies of the dwelling are exclusively managed by a community housing provider.
SECTION 980-5 980-5 Providing affordable housing
A *dwelling is used to provide affordable housing on a particular day (the test day ) if:
(a) on the test day, the dwelling is *taxable Australian real property and is *residential premises that:
(i) are tenanted or available to be tenanted; and
(ii) are not *commercial residential premises; and
(b) on the test day, the tenancy or prospective tenancy of the dwelling is exclusively managed by an *eligible community housing provider; and
(c) the eligible community housing provider has given each entity that holds an *ownership interest in the dwelling a certificate under section 980-15 that covers the dwelling for the test day; and
(d) no entity is entitled to receive an incentive, under the Scheme prescribed for the purposes of Part 2 of the National Rental Affordability Scheme Act 2008 , for the dwelling for the NRAS year (within the meaning of that Scheme) that includes the test day; and
(e) in the case of a *managed investment trust holding an *ownership interest in the dwelling on the test day - none of the tenants or occupants of the dwelling on that day holds an interest in the trust that passes the *non-portfolio interest test at any time during that day.
An eligible community housing provider is:
(a) an entity registered (however described) under an *Australian law as a provider of community housing services; or
(b) an entity registered (however described) by an *Australian government agency as a provider of community housing services.
980-10(2)
However, an entity that ceases to be covered by subsection (1) continues to be an eligible community housing provider for the 90-day period starting on the day of the cessation.
For the purposes of paragraph 980-5(c) , a certificate must:
(a) include a declaration that the *eligible community housing provider reasonably believes paragraphs 980-5(a) and (b) to be satisfied for the *dwelling for the test day; and
(b) be given in the *approved form on or before the 31st day after the end of the income year that contains the test day.
In this Act, except so far as the contrary intention appears:
4% build to rent manner
has the meaning given by subsection
43-145(2)
.
4% manner
has the meaning given by section
43-145
.
70% DFE rule
has the meaning given by section
394-35
.
95% services indirect value shift
has the meaning given by section
727-700
.
100% subsidiary
has the meaning given by section
975-505
.
165-CC tagged asset
has the meaning given by section
715-30
.
170-D deferred loss
has the meaning given by section
715-310
.
AAT
(Repealed by No 38 of 2024)
ABN
has the meaning given by the
A New Tax System (Australian Business Number) Act 1999
.
abnormal income
(Repealed by No 77 of 2001)
abnormal trading
has the meaning given by Subdivision
960-H
.
Aboriginal
(Repealed by No 84 of 2013)
above-average special professional income
has the meaning given by section
405-15
.
ACA
(Repealed by No 45 of 2005)
acceptable amount
of an instalment for an
*
instalment quarter has the meaning given by section
45-232
in Schedule
1
to the
Taxation Administration Act 1953
.
accountable membership interest
has the meaning given by section
208-30
.
accountable partial interest
has the meaning given by section
208-35
.
account-based annuity
has the meaning given by the
Superannuation Industry (Supervision) Regulations 1994
.
accounting principles
:
A matter is in accordance with
accounting principles
if it is in accordance with:
(a) *accounting standards; or
(b) if there are no accounting standards applicable to the matter - authoritative pronouncements of the Australian Accounting Standards Board that apply to the preparation of financial statements.
accounting principles for tax cost setting
has the meaning given by:
(a) subsection 705-70(3) ; and
(b) subsection 711-45(1A) .
accounting standards
has the same meaning as in the
Corporations Act 2001
.
accrued default amount
(Repealed by No 89 of 2013)
accrued leave transfer payment
has the meaning given by subsection
26-10(2)
.
accumulated AASL debt
has the meaning given by section 35 of the
Australian Apprenticeship Support Loans Act 2014
.
accumulated ABSTUDY SSL debt
has the meaning given by section
9C
of the
Student Assistance Act 1973
.
accumulated HELP debt
has the meaning given by section
140-25
of the
Higher Education Support Act 2003
.
accumulated SSL debt
has the meaning given by section
1061ZVEC
of the
Social Security Act 1991
.
accumulated TSL debt
(Repealed by No 61 of 2023)
accumulated VETSL debt
has the same meaning as in the
VET Student Loans Act 2016
.
accumulation phase value
of a *superannuation interest has the meaning given by subsection
307-205(2)
.
ACNC type of entity
means an entity that meets the description of a type of entity in column 1 of the table in subsection 25-5(5) of the
Australian Charities and Not-for-profits Commission Act 2012
.
(a) a * CGT asset: you acquire a CGT asset (in its capacity as a CGT asset) in the circumstances and at the time worked out under Division 109 (including under a provision listed in Subdivision 109-B ); and
Note:
A CGT asset acquired before 20 September 1985 may be treated as having been acquired on or after that day: see, for example, Division 149 .
(b) an item of * intellectual property: an entity does not acquire an item of intellectual property merely because a licence relating to a patent, design or copyright is surrendered to the entity.
acquisition time
has the meaning given by section
58-5
.
acquisition year
has the meaning given by section
58-5
.
active asset
has the meaning given by section
152-40
.
active build to rent development
has the meaning given by subsection
43-151(2)
.
active build to rent development area
has the meaning given by subsection
43-151(1)
.
active build to rent part
has the meaning given by section
44-25
.
active foreign business asset
of a company that is a foreign resident has the meaning given by section
768-540
.
active foreign business asset percentage
of a company has the meaning given by section
768-510
.
(a) in a * scheme under which there is a * direct value shift, has the meaning given by subsection 725-65(2) ; and
(b) in a * scheme under which there is an * indirect value shift, has the meaning given by subsection 727-530(3) .
actual cost method
of working out the *value of a *registered emissions unit has the meaning given by section
420-53
.
actuary
means a Fellow or Accredited Member of the Institute of Actuaries of Australia.
additional investment requirements for ESVCLPs
has the meaning given by subsection
118-428(1)
.
ADI
(authorised deposit-taking institution) means a body corporate that is an ADI for the purposes of the
Banking Act 1959
.
ADI equity capital
of an entity at a particular time means the total of the following:
(a) all the entity ' s * equity capital at that time; and
(b) the total value of all the * debt interests * issued by the entity that satisfy all of the following:
(i) at that time, the interests are * on issue and have been on issue for 90 days or more;
(ii) none of the interests gives rise to any cost, at any time, that is covered by paragraph 820-40(1)(a) .
A debt interestis treated as having satisfied subparagraph (b)(i) at that time if it was on issue at that time, and the total period for which it remains on issue is 90 days or more.
adjacent land
has the meaning given by subsection
118-120(2)
.
adjacent structure
has the meaning given by subsection
118-120(6)
.
adjustable value
:
(a)
of a
*
depreciating asset, has the meaning given by section
40-85
; and
(ba) of an asset, for the purposes of determining the consequences of a choice under any of sections 715-100 , 715-105 , 715-125 , 715-130 and 715-185 , has the meaning given by section 715-145 ; and
(b) of an * equity or loan interest:
(i) for the purposes of determining the consequences of a * direct value shift - has the meaning given by sections 725-240 , 725-315 and 725-325 ; and
(ii) for the purposes of determining the consequences of an * indirect value shift - has the meaning given by sections 727-830 , 727-835 and 727-840 .
adjustable value method
means the method (for determining the effect of
*
indirect value shifts) for which Subdivision
727-H
provides.
adjusted assessed tax
has the meaning given by section
45-375
in Schedule
1
to the
Taxation Administration Act 1953
.
adjusted assessed taxable income
has the meaning given by section
45-370
in Schedule
1
to the
Taxation Administration Act 1953
.
adjusted available frankable profits
has the meaning given by subsection
215-25(2)
.
adjusted average debt
has the meaning given by sections
820-85
,
820-120
,
820-185
and
820-225
.
adjusted average equity capital
has the meaning given by sections
820-300
,
820-330
,
820-589
and
820-613
.
adjusted Division 6 percentage
,
in relation to a trust estate, has the same meaning as in
Division 6 of Part III
of the
Income Tax Assessment Act 1936
.
adjusted net third party interest expense
has the meaning given by section
820-54
.
adjusted on-lent amount
has the meaning given by sections
820-100
,
820-200
and
820-210
.
adjusted tax
on
*
adjusted taxable income or on
*
adjusted withholding income has the meaning given by section
45-340
in Schedule
1
to the
Taxation Administration Act 1953
.
adjusted taxable income
has the meaning given by sections
45-330
and
45-480
in Schedule
1
to the
Taxation Administration Act 1953
.
adjusted taxable income for offsets
means adjusted taxable income for rebates within the meaning of subsection
6(1)
of the
Income Tax Assessment Act 1936
.
adjusted unrealised loss
at an
*
alteration time for a company has the meaning given by section
165-115U
.
adjusted withholding income
has the meaning given by sections
45-335
and
45-485
in Schedule
1
to the
Taxation Administration Act 1953
.
adopted child
of a person means someone the person has adopted:
(a) under a * State law or * Territory law about adoption of children; or
(b) under a * foreign law about adoption of children, if the adoption would be recognised as valid under a State law or Territory law.
affected interest
:
(a)
in the
*
losing entity for an
*
indirect value shift, has the meaning given by section
727-460
; or
(b) in the * gaining entity for an indirect value shift, has the meaning given by section 727-465 .
affected owner
:
(a)
of
*
down interests, has the meaning given by section
725-80
; and
(b) of * up interests, has the meaning given by section 725-85 ; and
(c) for an * indirect value shift, has the meaning given by section 727-530 .
affiliate
has the meaning given by section
328-130
.
affordable dwelling
has the meaning given by subsection
43-153(2)
.
AFOF
means an
*
Australian venture capital fund of funds.
agent
: this Act applies to some entities that are not agents in the same way as it applies to agents: see section
960-105
.
aggregated turnover
has the meaning given by section
328-115
.
Agriculture Department
means the Department administered by the Minister administering the
Farm Household Support Act 2014
.
Agriculture Minister
(Repealed by No 110 of 2014)
Agriculture Secretary
means the Secretary of the *Agriculture Department.
alienated personal services payment
has the meaning given by section
13-10
in Schedule
1
to the
Taxation Administration Act 1953
.
All Groups Consumer Price Index number
means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician.
allocable cost amount
has the meaning given by section
705-60
and subsection
711-20(1)
.
allocated annuity
means an
*
immediate annuity that satisfies the requirements of subregulation 1.05(4) of the Superannuation Industry (Supervision) Regulations.
allocated pension
means a
*
current pension that satisfies the requirements of subregulation 1.06(4) of the Superannuation Industry (Supervision) Regulations.
allowable capital expenditure
(Repealed by No 77 of 2001)
allowable OB deduction
has the meaning given by subsection
121EF(2)
of the
Income Tax Assessment Act 1936
.
allowance component
(Repealed by No 96 of 2014)
alteration time
:
(a)
for a company has the meaning given by sections
165-115L
,
165-115M
,
165-115N
,
165-115P
,
165-115Q
,
715-245
,
715-250
and
719-725
; and
(b) for a trust, has the meaning given by section 715-270 .
AMIT
(short for
attribution managed investment trust
) has the meaning given by section
276-10
.
AMIT cost base increase amount
has the meaning given by section
104-107E
.
AMIT cost base net amount
has the meaning given by section
104-107C
.
AMIT cost base reduction amount
has the meaning given by section
104-107D
.
AMIT DIR payment
has the meaning given by section
12A-25
in Schedule
1
to the
Taxation Administration Act 1953
.
AMIT dividend payment
has the meaning given by section
12A-30
in Schedule
1
to the
Taxation Administration Act 1953
.
AMIT interest payment
has the meaning given by section
12A-35
in Schedule
1
to the
Taxation Administration Act 1953
.
AMIT member annual statement
: see
AMMA statement
.
AMIT royalty payment
has the meaning given by section
12A-40
in Schedule
1
to the
Taxation Administration Act 1953
.
AMMA statement
(short for
AMIT member annual statement
) has the meaning given by section
276-460
.
amount arising
(Repealed by No 77 of 2001)
amount required to be withheld
by an entity from a *withholding payment means:
(a) the amount that the entity must withhold from the payment under Division 12 in Schedule 1 to the Taxation Administration Act 1953 ; or
(aaa) the amount that Division 12A in that Schedule requires the entity to pay to the Commissioner in respect of the payment; or
(aa) the amount that Division 13 in that Schedule requires the entity to pay to the Commissioner in respect of the *alienated personal services payment to which the withholding payment relates; or
(b) the amount that Division 14 in that Schedule requires the entity to pay to the Commissioner in respect of the *non-cash benefit, *capital proceeds or *taxable supply to which the withholding payment relates;
or that amount as varied by the Commissioner under section 15-15 in the Schedule.
amount withheld
by an entity from a *withholding payment means:
(a) an amount that the entity withheld from the payment under Division 12 in Schedule 1 to the Taxation Administration Act 1953 ; or
(aaa) an amount that the entity paid to the Commissioner under Division 12A in that Schedule in respect of the payment; or
(aa) an amount that the entity paid to the Commissioner under Division 13 in that Schedule in respect of the *alienated personal services payment to which the withholding payment relates; or
(b) an amount that the entity paid to the Commissioner under Division 14 in that Schedule in respect of the *non-cash benefit, *capital proceeds or *taxable supply to which the withholding payment relates.
ancillary activities
(Repealed by No 77 of 2001)
(a) a *public ancillary fund; or
(b) a *private ancillary fund.
ancillary mining activities
has the meaning given by section
40-740
.
ancillary or community charity trust fund
means:
(a) a *public ancillary fund; or
(b) a *private ancillary fund; or
(c) a *community charity trust.
annual exploration cap
for an income year has the meaning given by subsection
418-103(1)
.
annual global income
has the meaning given by section
960-565
.
annual instalment component
of your *tax position has the meaning given by section
45-610
in Schedule
1
to the
Taxation Administration Act 1953
.
annual investment income report
means a report, relating to *Part VA investments, that an entity is required to give to the Commissioner, in respect of a *financial year, under section
393-10
in Schedule
1
to the
Taxation Administration Act 1953
.
annual payer
means an entity that has become an annual payer under section
45-140
in Schedule
1
to the
Taxation Administration Act 1953
, and has not since ceased to be an annual payer under section
45-150
or
45-155
or former section 45-180 in that Schedule.
annual tax period election
has the same meaning as in the
*
GST Act.
annual turnover
has the meaning given by section
328-120
.
(a) an annuity, within the meaning of the Superannuation Industry (Supervision) Act 1993 ; or
(b) a pension, within the meaning of the Retirement Savings Accounts Act 1997 .
annuity instrument
means an instrument that secures the grant of an annuity (whether dependent on the life of an individual or not).
apartment building
has the meaning given by section
43-95
.
applicable functional currency
has the meaning given by section
960-70
.
applicable fund earnings
has the meaning given by section
305-75
.
applicable instalment rate
(Repealed by No 96 of 2014)
applicable insurance contracts accounting standard
means:
(a) unless paragraph (b) applies - *accounting standard AASB 17, as in force on 31 December 2022; or
(b) if the regulations prescribe another accounting standard (which may be AASB 17 as in force at another time) - that accounting standard.
Applicable MNE Group
, for a *Fiscal Year, has the same meaning as in the *Minimum Tax Act, as affected by section 28 of that Act.
applicable trust fund guidelines
means:
(a) in relation to a *public ancillary fund - the *public ancillary fund guidelines; or
(b) in relation to a *private ancillary fund - the *private ancillary fund guidelines; or
(c) in relation to a *community charity trust - the *community charity trust guidelines.
(a) amounts deducted or deductible under section 25-75 (which provides a deduction for rates and land tax); or
(b) amounts deducted or deductible under section 30-15 because of item 1, 2, 7 or 8 in the table in that section, except amounts deducted or deductible for gifts of * trading stock in cases where:
(i) the gifts are covered by section 70-90 (which has the effect that the giver ' s assessable income includes the market value of the gift); and
(ii) no election has been made, or is made, under Subdivision 385-E (which allows the giver to choose to spread the market value of a gift of live stock over the giver ' s assessable income for 5 income years or to reduce the amount included in the giver ' s assessable income by the cost of replacement live stock).
approved child care
(Repealed by No 49 of 2019)
approved child care fees
(Repealed by No 49 of 2019)
approved deposit fund
has the meaning given by section
10
of the
Superannuation Industry (Supervision) Act 1993
.
approved deposit fund payment
has the meaning given by section
307-5
.
approved form
has the meaning given by section
388-50
in Schedule
1
to the
Taxation Administration Act 1953
.
approved investment plan,
of an
*
ESVCLP, has the meaning given by subsection
13-15(2)
of the
Venture Capital Act 2002
.
approved management plan
for land has the meaning given by section
40-640
.
approved occupational clothing guidelines
has the meaning given by subsection
34-55(1)
.
approved stock exchange
means a stock exchange named in regulations made for the purposes of this definition.
APRA
means the Australian Prudential Regulation Authority.
area covered by an international tax sharing treaty
: if, under an *international tax sharing treaty, Australia and another country share tax revenues from activities undertaken in an area identified by or under the treaty, that area is an
area covered by an international tax sharing treaty
.
arm
'
s length
:
in determining whether parties deal at
arm
'
s length
, consider any connection between them and any other relevant circumstance.
arm
'
s length capital amount
:
(a)
for an
*
outward investing entity (ADI)
-
has the meaning given by section
820-315
; and
(b) for an * inward investing entity (ADI) - has the meaning given by section 820-410 .
arm
'
s length conditions
has the meaning given by section
815-125
.
arm
'
s length consideration
(Repealed by No 96 of 2014)
arm
'
s length debt amount
(Repealed by No 23 of 2024)
arm
'
s length profits
has the meaning given by section
815-225
.
arrangement
means any arrangement, agreement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable (or intended to be enforceable) by legal proceedings.
arrangement payment
has the meaning given by section
240-65
.
arrangement payment period
has the meaning given by section
240-70
.
arrangement period
for a
*
tax preferred use of an asset has the meaning given by section
250-65
.
ART
means the Administrative Review Tribunal.
artistic support
has the meaning given by subsection
405-25(5)
.
Arts Department
(Repealed by No 110 of 2014)
Arts Minister
means the Minister administering the
National Gallery Act 1975
.
Arts Secretary
means the Secretary of the Department administered by the *Arts Minister.
(a) a painting, sculpture, drawing, engraving or photograph; or
(b) a reproduction of such a thing; or
(c) property of a similar description or use.
ASIC
means the Australian Securities and Investments Commission.
assessable amount
has the meaning given by subsection
155-5(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
assessable FHSS released amount
, for an income year, means the amount included in a person
'
s assessable income for the income year under section
313-20
in respect of the person
'
s *FHSS released amounts.
assessable film income
for an income year is so much of the amount, or the sum of the amounts, to which section
26AG
of the
Income Tax Assessment Act 1936
applies in relation to you for the income year as is assessable income.
assessable income
has the meaning given by sections
6-5
,
6-10
,
6-15
,
17-10
and
17-30
.
For the effect of GST-related amounts on assessable income, see Division 17 .
Note:
For income years before 1997-98, assessable income has the meaning given by section 6-3 of the Income Tax (Transitional Provisions) Act 1997 .
assessable non-primary production income
has the meaning given by subsection
392-85(2)
.
assessable primary production income
has the meaning given by subsection
392-80(2)
.
assessable professional income
has the meaning given by subsection
405-20(1)
.
assessable recoupment
has the meaning given by section
20-20
.
assessed build to rent development misuse tax
means *build to rent development misuse tax, as assessed under Schedule
1
to the
Taxation Administration Act 1953
.
assessed Division 293 tax
means
*
Division 293 tax, as assessed under Schedule
1
to the
Taxation Administration Act 1953
.
assessed excess transfer balance tax
means *excess transfer balance tax, as assessed under Schedule
1
to the
Taxation Administration Act 1953
.
assessed first home super saver tax
means *first home super saver tax, as assessed under Schedule
1
to the
Taxation Administration Act 1953
.
assessed GST
has the meaning given by the *GST Act.
assessed net amount
has the meaning given by the *GST Act.
assessed net fuel amount
has the meaning given by the
Fuel Tax Act 2006
.
(a) of an *assessable amount, means an ascertainment of the assessable amount; and
(b) in relation to a *tax-related liability not covered by paragraph (a), has the meaning given by a *taxation law that provides for the assessment of the amount of the liability.
Note:
The table lists provisions of taxation laws that define assessment .
| Taxation laws that define assessment | ||
| Item | Taxation law | Provision |
| 1 | Income Tax Assessment Act 1936 | subsection 6(1) |
| 5 | Fringe Benefits Tax Assessment Act 1986 | subsection 136(1) |
| 10 | Petroleum Resource Rent Tax Assessment Act 1987 | section 2 |
| 15 | Superannuation Guarantee (Administration) Act 1992 | section 6 |
| 20 | Superannuation Contributions Tax (Assessment and Collection) Act 1997 | section 43 |
| 25 | Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 | section 38 |
| 30 | (Repealed by No 23 of 2018) |
assessment day
for an income year of a
*
life insurance company has the meaning given by section
219-45
.
asset
, of a *sub-fund of a *CCIV, means any of the assets of the sub-fund, ascertained in accordance with Subdivision
B
of Division
3
of Part
8B.5
of the
Corporations Act 2001
.
asset for insurance acquisition cash flows
has the same meaning as in the *applicable insurance contracts accounting standard.
asset-based income tax regime
has the meaning given by section
830-105
.
asset entity
has the meaning given by section
12-436
in Schedule
1
to the
Taxation Administration Act 1953
.
asset forming part of goodwill
(Repealed by No 99 of 2012)
asset included in the total assets
of a company that is a foreign resident has the meaning given by section
768-545
.
associate
has the meaning given by section
318
of the
Income Tax Assessment Act 1936
.
Note:
Under section 87-35 , Australian government agencies, and certain parts of Australian governments and authorities, are not treated as associates for the purposes of ascertaining whether an entity is conducting a personal services business.
associated enterprises article
has the meaning given by subsection
815-15(5)
.
associated government entity
means:
(a) for the Commonwealth - each authority of the Commonwealth; or
(b) for an authority of the Commonwealth - each other authority of the Commonwealth; or
(c) for a State - each authority of the State; or
(d) for an authority of a State - each other authority of the State; or
(e) for a Territory - each authority of the Territory; or
(f) for an authority of a Territory - each other authority of the Territory.
associate entity
has the meaning given by section
820-905
.
associate entity debt
has the meaning given by section
820-910
.
associate entity equity
has the meaning given by section
820-915
.
associate entity excess amount
has the meaning given by section
820-920
.
associate-inclusive control interest
in a company has the meaning given by section
975-160
.
associate-inclusive control interest
(Repealed by No 90 of 2002)
associate interest
has the meaning given by section
820-905
.
associate pair
: an entity is an associate pair of another entity if any of the following conditions are satisfied:
(a) the entity is an associate of the other entity;
(b) the other entity is an associate of the entity.
at risk
has the meaning given by section
118-430
.
attributable income
has the meaning given by
Division 7 of Part X
of the
Income Tax Assessment Act 1936
.
attributable taxpayer
has the meaning given by Part
X
of the
Income Tax Assessment Act 1936
.
attribution managed investment trust
: see
AMIT
.
attribution percentage
, in relation to a *CFC or a *CFT, has the meaning given by Part
X
of the
Income Tax Assessment Act 1936
.
audited consolidated financial statements
for an entity for a period has the meaning given by section
820-935
.
auditing principles
: a matter is in accordance with
auditing principles
if it is in accordance with:
(a) *auditing standards; or
(b) if there are no auditing standards applicable to the matter - authoritative pronouncements of the Auditing and Assurance Standards Board that apply to the preparation of financial statements.
auditing standard
has the same meaning as in the
Corporations Act 2001
.
Australia
has the meaning affected by section
960-505
.
Australian agricultural land for rent
has the meaning given by section
12-448
in Schedule
1
to the
Taxation Administration Act 1953
.
Australian Business Register
means the Australian Business Register established and maintained under the
A New Tax System (Australian Business Number) Act 1999
.
[ CCH Note: Definition of " Australian Business Register " will be repealed by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 1382, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 30-5(4AA) .]
Australian Business Registrar
means the Registrar of the *Australian Business Register.
[ CCH Note: Definition of " Australian Business Registrar " will be repealed by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 1383, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 30-5(4AA) .]
Australian carbon credit unit
has the same meaning as in the
Carbon Credits (Carbon Farming Initiative) Act 2011
.
Australian controlled foreign entity
has the meaning given by section
820-745
.
Australian controller
:
(a)
of a
*
controlled foreign company mentioned in paragraph
820-745(a)
-
has the meaning given by section
820-750
; and
(b) of a * controlled foreign trust - has the meaning given by section 820-755 ; and
(c) of a * controlled foreign corporate limited partnership - has the meaning given by section 820-760 .
Australian corporate tax entity
:
an entity is an
Australian corporate tax entity
at a particular time if the entity is:
(a) a *corporate tax entity at that time; and
(b) for a company or a *corporate limited partnership - an Australian resident at that time; and
(c) for a *public trading trust - a *resident unit trust for the income year in which that time occurs.
Australian DMT tax
means tax payable under section 8 of the *Minimum Tax Act.
Note:
DMT is short for Domestic Minimum Top-up.
Australian DMT tax amount
means a Domestic Top-up Tax Amount (within the meaning of the *Minimum Tax Act).
Australian DMT tax return
has the meaning given by section
127-45
in Schedule
1
to the
Taxation Administration Act 1953
.
Australian entity
has the same meaning as in Part
X
of the
Income Tax Assessment Act 1936
Australian financial market
means a financial market (within the meaning of Chapter
7
of the
Corporations Act 2001
) operating under an Australian market licence granted under subsection
795B(1)
of that Act.
Australian financial services licence
has the same meaning as in the
Corporations Act 2001
.
Australian fund
has the meaning given by section
74
of the
Life Insurance Act 1995
.
(a) *Australian DMT tax; and
(b) *Australian IIR tax; and
(c) *Australian UTPR tax.
Australian GloBE tax affairs
means affairs relating to:
(a) *Australian IIR/UTPR tax; or
(b) *Australian DMT tax.
Australian government agency
means:
(a) the Commonwealth, a State or a Territory; or
(b) an authority of the Commonwealth or of a State or a Territory.
Australian IIR tax
means tax payable under section 6 of the *Minimum Tax Act.
Note:
IIR is short for income inclusion rule.
Australian IIR/UTPR tax
means:
Australian IIR/UTPR tax amount
means:
Australian IIR/UTPR tax return
has the meaning given by section
127-35
in Schedule
1
to the
Taxation Administration Act 1953
.
Australian law
means a
*
Commonwealth law, a
*
State law or a
*
Territory law.
(a) the Parliament of the Commonwealth of Australia; or
(b) the Parliament of a State; or
(c) the Legislative Assembly for the Australian Capital Territory; or
(d) the Legislative Assembly of the Northern Territory of Australia.
Australian/overseas fund
has the meaning given by section
74
of the
Life Insurance Act 1995
.
Australian permanent establishment
, of an entity, means a
*
permanent establishment of the entity that is in Australia.
Australian resident
means a person who is a resident of Australia for the purposes of the
Income Tax Assessment Act 1936
.
Australian source
:
without limiting when *ordinary income or *statutory income has an
Australian source
, it has an
Australian source
if it is
*
derived
from a source in Australia for the purposes of the
Income Tax Assessment Act 1936
.
Australian-sourced amount
has the meaning given by the regulations mentioned in section
312-5
(about trans-Tasman portability of retirement savings).
Australian superannuation fund
has the meaning given by section
295-95
.
Australian trust
has the same meaning as in Part
X
of the
Income Tax Assessment Act 1936
Australian UTPR tax
means tax payable under section 10 of the *Minimum Tax Act.
Note:
UTPR is short for undertaxed profits rule.
Australian venture capital fund of funds
has the meaning given by subsection
118-410(3)
.
authorised ASIO officer
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
authorised law enforcement agency officer
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
available assessable income
(Repealed by No 77 of 2001)
available expense
has the meaning given by section
175-30
.
available fraction
for a
*
bundle of losses has the meaning given by sections
707-320
,
719-310
and
719-315
.
available frankable profits
has the meaning given by section
215-20
and affected by subsection
215-25(1)
.
available income
has the meaning given by section
175-30
.
available loss exposure amount
has the meaning given by paragraph
830-50(1)(a)
.
average equity capital
has the meaning given by sections
820-395
,
820-420
and
820-615
.
average income
has the meaning given in subsection
392-45(1)
.
average taxable professional income
has the meaning given by subsections
405-50(1)
and
(2)
.
average turnover
(Repealed by
No 80 of 2007
)
averaging adjustment
has the meaning given in section
392-75
.
averaging component
has the meaning given in subsection
392-90(1)
.
award transport payment
has the meaning given by section
900-220
.
balancing adjustment event
has the meaning given by section
40-295
.
Note:
Subsection 417-30(1) provides that certain events (connected with Timor Sea petroleum) are taken not to be balancing adjustment events.
BAS amount
means any debt or credit that arises directly under the *BAS provisions.
Note:
BAS stands for Business Activity Statement.
BAS amounts
(Repealed by No 12 of 2012)
base assessment
has the meaning given by sections
45-320
and
45-470
in Schedule
1
to the
Taxation Administration Act 1953
.
base interest rate
has the meaning given by section
8AAD
of the
Taxation Administration Act 1953
.
base penalty amount
: the base penalty amount for calculating the amount of an administrative penalty is worked out under the relevant provision in this table:
| Base penalty amount | ||
| Item | For a penalty for this: | See: |
| 1 | False or misleading statement | Section 284-90 in Schedule 1 to the Taxation Administration Act 1953 |
| Position not reasonably arguable | ||
| 2 | * Schemes | Section 284-160 in that Schedule |
| 3 | Failure to lodge returns etc. | Section 286-80 in that Schedule |
base value
, of a *depreciating asset, has the meaning given by subsection
40-70(1)
.
base year
, in relation to an income year, has the meaning given by sections
45-320
and
45-470
in Schedule
1
to the
Taxation Administration Act 1953
.
base year
†
, for your entitlement to a
*
tax offset under Subdivision
61-I
, has the meaning given by section
61-430
.
basic assessable income
has the meaning given by subsection
392-45(2)
.
basic concessional contributions cap
means the concessional contributions cap under subsection
291-20(2)
, disregarding any increase under subsection
291-20(3)
.
basic rates
has the meaning given by subsection
392-35(4)
.
basic taxable income
has the meaning given by section
392-15
.
(a) Part VII of the Fringe Benefits Tax Assessment Act 1986 ; and
(b) the *indirect tax law; and
(c) Parts 2-5 and 2-10 in Schedule 1 to the Taxation Administration Act 1953 (which are about the PAYG system); and
(d) Division 389 in Schedule 1 to the Taxation Administration Act 1953 ; and
(e) the Major Bank Levy Act 2017 .
Note:
BAS stands for Business Activity Statement.
behaviour that is harmful or abusive
means one or more of the following:
(a) emotional abuse;
(b) sexual abuse;
(c) physical abuse;
(d) suicide;
(e) self-harm;
(f) substance abuse;
(g) harmful gambling.
benchmark franking percentage
has the meaning given by section
203-30
.
benchmark instalment rate
has the meaning given by sections
45-360
and
45-530
in Schedule
1
to the
Taxation Administration Act 1953
.
benchmark rate of return
for an interest has the meaning given by section
974-145
.
benchmark rule
is the rule in section
203-25
.
benchmark tax
has the meaning given by sections
45-365
and
45-535
in Schedule
1
to the
Taxation Administration Act 1953
.
beneficiary
, of a *CCIV sub-fund trust, means a *member of the *sub-fund who is taken because of subsection
195-110(1)
to be a beneficiary of the trust.
bereavement Subdivision
has the meaning given by section
52-20
.
bid period
has the meaning given by section
9
of the
Corporations Act 2001
.
borrowed securities amount
of an entity at a particular time means the total of the liabilities of the entity, to the extent that they meet these conditions:
(a) the value of the liability at that time is worked out by reference to the value at that time of securities that the entity has short sold;
(b) as at that time, the entity has settled the sale using securities it acquired under one or more of these * arrangements:
(i) a reciprocal purchase agreement (otherwise known as a repurchase agreement);
(ii) a sell-buyback arrangement;
(iii) a securities loan arrangement.
borrowing
means any form of borrowing, whether secured or unsecured, and includes the raising of funds by the issue of a bond, debenture, discounted security or other document evidencing indebtedness.
branch hybrid
has the meaning given by section
832-485
.
branch hybrid mismatch
has the meaning given by section
832-470
.
bribe to a foreign public official
has the meaning given by section
26-52
.
bribe to a public official
has the meaning given by section
26-53
.
build to rent capital works deduction amount
has the meaning given by section
44-25
.
build to rent compliance period
has the meaning given by subsection
43-152(5)
.
build to rent development
has the meaning given by subsections
43-152(1)
,
(2)
and
(3)
.
build to rent development misuse tax
means tax imposed by the
Capital Works (Build to Rent Misuse Tax) Act 2024
.
build to rent misuse amount
has the meaning given by section
44-20
.
build to rent withholding amount
has the meaning given by section
44-30
.
bundle
of losses has the meaning given by section
707-315
.
business
includes any profession, trade, employment, vocation or calling, but does not include occupation as an employee.
business continuity test
has the meaning given by Subdivision
165-E
.
business continuity test period
has the meaning given by sections
165-13
,
165-15
,
165-35
,
165-40
,
165-45
,
165-126
,
165-129
,
165-132
,
166-5
,
166-20
,
166-40
,
707-125
,
707-135
,
715-50
,
715-55
,
715-60
,
715-70
,
715-95
,
715-355
and
715-360
, and affected by sections
415-35
,
415-40
and
707-400
.
business day
means a day other than:
(a) a Saturday or a Sunday; or
(b) a day which is a public holiday for the whole of:
(i) any State; or
(ii) the Australian Capital Territory; or
(iii) the Northern Territory.
business exemption threshold
(Repealed by No 165 of 1999)
business kilometres
has the meaning given by sections
28-25
and
28-90
.
business meeting
has the meaning given by subsections
32-65(3)
and
(4)
.
business profits article
has the meaning given by subsection
815-15(6)
.
business travel expense
has the meaning given by section
900-95
.
business use percentage
has the meaning given by section
28-90
.
capital allowance
means a deduction under:
(a) Division 40 (capital allowances) of this Act; or
(ab) Division 43 (capital works) of this Act; or
(ac) Subdivision 328-D (capital allowances for small business entities) of this Act; or
(b) - (c) (Repealed by No 101 of 2006)
(d) former Division 10BA of Part III of that Act (Australian films); or
(e) former Division 10B of Part III of that Act (copyright in Australian films).
(f) (Repealed by No 93 of 2011)
capital gain
:
for each
*
CGT event a
capital gain
is worked out in the way described in that event.
Note 1:
There are some CGT events for which there is no capital gain.
Note 2:
For income years before 1998-99, capital gain has the meaning given by section 102-20 of the Income Tax (Transitional Provisions) Act 1997 .
capital loss
:
for each
*
CGT event a
capital loss
is worked out in the way described in that event.
Note 1:
There are some CGT events for which there is no capital loss.
Note 2:
For income years before 1998-99, capital loss has the meaning given by section 102-20 of the Income Tax (Transitional Provisions) Act 1997 .
capital proceeds
has the meaning given by Division
116
.
capital protected borrowing
has the meaning given by section
247-10
.
capital protection
has the meaning given by section
247-10
.
capital shareholding of less than 1%
(Repealed by No 147 of 2005)
capital stake
has the meaning given by section
166-235
.
capital unitholding of less than 1%
(Repealed by No 94 of 1999)
capped defined benefit income stream
has the meaning given by section
294-130
.
capped life
of a *depreciating asset has the meaning given by section
40-102
.
car
means a *motor vehicle (except a motor cycle or similar vehicle) designed to carry a load of less than 1 tonne and fewer than 9 passengers.
carbon sequestration
has the meaning given by section
40-1015
.
carbon service provider
means an entity that carries on the *business of providing services wholly or mainly relating to offsets projects (within the meaning of the
Carbon Credits (Carbon Farming Initiative) Act 2011
), including services involving the entity carrying out such projects as the project proponent (within the meaning of that Act).
carbon unit
(Repealed by No 83 of 2014)
car depreciation limit
(Repealed by No 77 of 2001)
car expense
has the meaning given by section
28-13
.
car fringe benefit
has the meaning given by subsection
136(1)
of the
Fringe Benefits Tax Assessment Act 1986
.
car-less day
(Repealed by No 162 of 2015)
car limit
has the meaning given by section
40-230
.
carried interest
:
(a)
of a *general partner in a *VCLP, an *ESVCLP or an *AFOF
-
has the meaning given by subsections
104-255(4)
and (6); and
(b) of a *limited partner in a *VCMP - has the meaning given by subsections 104-255(5) and (6) .
carried on in Australia
(Repealed by No 66 of 2003)
carry back
: you
carry back
to an income year so much of a *tax loss for a later income year as you specify, in a *loss carry back choice, to be carried back to the earlier income year.
Note:
You can make a loss carry back choice only for the 2020-21, 2021-22 or 2022-23 income year.
carry-forward trust component deficit
, of a particular character, has the meaning given by section
276-330
.
carrying on
an
*
enterprise includes doing anything in the course of the commencement or termination of the enterprise.
cash bidding exploration or prospecting authority
(Repealed by No 77 of 2001)
cash management trust
means a trust that satisfies these requirements:
(a) the trust is of a kind commonly known as a cash management trust;
(b) each unit in the trust carries the same rights as every other unit in the trust.
cash settlable
has the meaning given by subsection
230-45(2)
.
CBC reporting entity
: see
country by country reporting entity
.
CBC reporting group
: see
country by country reporting group
.
CBC reporting parent
: see
country by country reporting parent
.
CCIV
: see
corporate collective investment vehicle
.
CCIV sub-fund trust
has the meaning given by subsection
195-110(2)
.
cease
to be an *active build to rent development has the meaning given by subsection
43-152(4)
.
cessation event
, in relation to a
*
provisional head company of a
*
MEC group, has the meaning given by subsection
719-60(6)
.
cessation time
(Repealed by No 133 of 2009)
CFC
has the meaning given by Part
X
of the
Income Tax Assessment Act 1936
.
CFT
has the meaning given by section
342
of the
Income Tax Assessment Act 1936
.
CGT asset
has the meaning given by section
108-5
.
CGT cap amount
has the meaning given by section
292-105
.
CGT concession stakeholder
has the meaning given by subsection
152-60
.
CGT event
means any of the CGT events described in Division
104
. A CGT event described by number (for example:
CGT event A1
) refers to the relevant event in that Division.
CGT exempt amount
has the meaning given by section
152-315
.
CGT retirement exemption limit
has the meaning given by section
152-320
.
CGT small business entity
has the meaning given by subsection
152-10(1AA)
.
chain of trusts
has the meaning given by section
104-71
.
changeover time
for a company has the meaning given by sections
165-115C
,
165-115D
and
719-705
.
child
: without limiting who is a child of an individual, each of the following is the
child
of an individual:
(a) the individual ' s *adopted child, stepchild or exnuptial child;
(b) a child of the individual ' s *spouse;
(c) someone who is a child of the individual within the meaning of the Family Law Act 1975 .
child care base week
(Repealed by No 49 of 2019)
child care offset limit
(Repealed by No 49 of 2019)
child event
(Repealed by No 49 of 2019)
child recipient
of a *superannuation income stream has the meaning given by section
294-175
.
class
of a taxable income or a
*
tax loss of a
*
life insurance company has the meaning given by section
320-133
.
class
:
*
membership interests in a company or trust form a
class
if the interests have the same, or substantially the same, rights.
clean building
has the meaning given by section
12-430
in Schedule
1
to the
Taxation Administration Act 1953
.
clean building managed investment trust
has the meaning given by section
12-425
in Schedule
1
to the
Taxation Administration Act 1953
.
Climate Change Department
(Repealed by No 110 of 2014)
Climate Change Minister
means the Minister administering the
National Greenhouse and Energy Reporting Act 2007
.
Climate Change Secretary
means the Secretary of the Department administered by the *Climate Change Minister.
closing pool balance
has the meaning given by:
(a) for a low-value pool - section 40-440 ; or
(b) for a * general small business pool - section 328-200 .
closing pool value
has the meaning given by section
40-830
.
club
(Repealed by No 121 of 1997)
collectable
has the meaning given by section
108-10
.
commence
to be an *active build to rent development has the meaning given by subsections
43-152(1)
and
(2)
.
commencing day
of a
*
CFC has the meaning given by section
406
of the
Income Tax Assessment Act 1936
.
commencing day asset
of a
*
CFC has the meaning given by section
406
of the
Income Tax Assessment Act 1936
.
commercial horticulture
has the meaning given by section
40-535
.
commercial residential premises
has the same meaning as in the *GST Act.
Commissioner
means the Commissioner of Taxation.
Note:
The office of Commissioner of Taxation is created by section 4 of the Taxation Administration Act 1953 .
Commissioner assessment
(Repealed by No 161 of 2005)
Commissioner
'
s instalment rate
has the meaning given by section
45-115
in Schedule
1
to the
Taxation Administration Act 1953
.
committed capital
of a partnership has the meaning given by section
118-445
.
common ownership
: see
under common ownership
.
common area
, for *dwellings of an *active build to rent development, has the meaning given by subsection
43-151(3)
.
common-ownership nexus
:
see section
727-400
.
common stake
has the meaning given by sections
124-783
and
124-783A
.
common stakeholder
has the meaning given by section
124-783
.
Commonwealth education or training payment
has the meaning given by subsection
52-145(1)
.
Commonwealth labour market program
has the meaning given by subsection
52-145(2)
.
Commonwealth law
means a law of the Commonwealth.
Commonwealth of Nations country
means:
(a) a foreign country that is a member of the Commonwealth of Nations; or
(b) a colony, overseas territory or protectorate of such a member; or
(c) a territory for whose international relations such a member is responsible;
other than one declared by the regulations not to be a Commonwealth of Nations country.
Commonwealth public sector superannuation scheme
has the same meaning as in the
Superannuation (Unclaimed Money and Lost Members) Act 1999
.
community charity corporation
has the meaning given by section
426-180
in Schedule
1
to the
Taxation Administration Act 1953
.
community charity corporation guidelines
has the meaning given by section
426-185
in Schedule
1
to the
Taxation Administration Act 1953
.
community charity trust
has the meaning given by section
426-117
in Schedule
1
to the
Taxation Administration Act 1953
.
community charity trust guidelines
has the meaning given by section
426-118
in Schedule
1
to the
Taxation Administration Act 1953
.
community shed
means a public institution that satisfies all of the following requirements:
(a) the institution ' s dominant purposes are advancing mental health and preventing or relieving social isolation;
(b) the institution seeks to achieve those purposes principally by providing a physical location where it supports individuals to undertake activities, or work on projects, in the company of others;
(c) either:
(i) there are no particular criteria for membership of the institution; or
(ii) the criteria for membership of the institution relate only to an individual ' s gender or Indigenous status (in that membership is, for cultural reasons, open only to *Indigenous persons) or both.
(a) a body corporate; or
(b) any other unincorporated association or body of persons;
but does not include a partnership or a * non-entity joint venture.
Note 1:
Division 830 treats foreign hybrid companies as partnerships.
Note 2:
A reference to a company includes a reference to a corporate limited partnership: see section 94J of the Income Tax Assessment Act 1936 .
company law
(Repealed by No 41 of 2005)
company
'
s share
:
(a)
of a partnership
'
s
*
notional loss or
*
notional net income
-
has the meaning given by sections
165-80
and
165-85
; and
(b) of a partnership ' s * full year deductions - has the meaning given by sections 165-90 .
comparison rate
has the meaning given by section
392-55
.
compensable work-related trauma
has the meaning given by subsection
136(1)
of the
Fringe Benefits Tax Assessment Act 1986
.
(a) in relation to a *film, has the meaning given by subsection 376-55(2) ; and
(b) in relation to a *digital game, has the meaning given by subsection 378-25(2) .
complying approved deposit fund
means a complying approved deposit fund within the meaning of section
47
of the
Superannuation Industry (Supervision) Act 1993
.
complying health insurance policy
has the meaning given by the
Private Health Insurance Act 2007
.
complying superannuation asset
has the meaning given by subsection
320-170(6)
.
complying superannuation asset pool
has the meaning given by subsection
320-170(6)
.
complying superannuation class
:
(a) for a taxable income ofa *life insurance company - has the meaning given by section 320-137 ; or
(b) for a *tax loss of a *life insurance company - has the meaning given by section 320-141 .
complying superannuation class
(Repealed by No 45 of 2008)
complying superannuation class
(Repealed by No 45 of 2008)
complying superannuation entity
means:
(a) a * complying superannuation fund; or
(b) a * complying approved deposit fund; or
(c) a * pooled superannuation trust.
complying superannuation/FHSA asset
(Repealed by No 70 of 2015)
complying superannuation/FHSA asset pool
(Repealed by No 70 of 2015)
complying superannuation/FHSA class
(Repealed by No 70 of 2015)
complying superannuation/FHSA liabilities
(Repealed by No 70 of 2015)
complying superannuation/FHSA life insurance policy
(Repealed by No 70 of 2015)
complying superannuation fund
means a complying superannuation fund within the meaning of section
45
of the
Superannuation Industry (Supervision) Act 1993
.
complying superannuation liabilities
of a *life insurance company means liabilities of the company under *life insurance policies referred to in subsection
320-190(1)
.
complying superannuation life insurance policy
means a *life insurance policy that:
(a) is held by the trustee of a *complying superannuation entity; or
(b) is held by an individual and:
(i) provides for an *annuity that is not presently payable, if the annuity was purchased out of a *superannuation lump sum or an *employment termination payment; or
(ia) provides for an *immediate annuity, if the annuity is a *superannuation income stream that is not in the *retirement phase; or
(ii) is so held in the benefit fund of a *friendly society, being a fund that is a *regulated superannuation fund; or
(c) is held by another *life insurance company and is a *complying superannuation asset of that company;
and is not an *excluded complying superannuation life insurance policy.
complying superannuation plan
means:
(a) a *complying superannuation fund; or
(b) a *public sector superannuation scheme that is:
(i) a *regulated superannuation fund; or
(ii) an exempt public sector superannuation scheme (within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993 ); or
(c) a *complying approved deposit fund; or
(d) an *RSA.
component
of your
*
tax position has the meaning given by section
45-610
in Schedule
1
to the
Taxation Administration Act 1953
.
concentration
(Repealed by No 77 of 2001)
concessional contributions
has the meaning given by sections
291-25
and
291-165
.
concessional contributions cap
has the meaning given by section
291-20.
concessional cross staple rent cap
has the meaning given by sections
12-443
and
12-444
in Schedule
1
to the
Taxation Administration Act 1953
.
conduit foreign income
has the meaning given by Subdivision
802-A
.
connected entity
of an entity means:
(a) an * associate of the entity; or
(b) another member of the same * wholly owned group if the entity is a company and is a member of such a group.
connected with
:
an entity is
connected with
you in the circumstances described in section
328-125
.
Note:
This meaning is affected by section 152-78 .
connecting power to land or upgrading the connection
has the meaning given by section
40-655
.
conservation covenant
has the meaning given by section
31-5
.
consideration
, for a *taxable supply, has the same meaning as in the *GST Act.
consideration receivable
:
(a)
consideration receivable
on the disposal of a leased
*
car has the meaning given by section
20-115
; and
(b) consideration receivable for * trading stock changing hands has the meaning given by subsection 70-100(11) .
consolidatable group
has the meaning given by section
703-10
.
consolidated group
has the meaning given by section
703-5
.
Note 1:
Part 3-90 contains rules relating to the tax treatment of consolidated groups. Division 719 (of that Part) applies those rules to MEC groups with modifications (see section 719-2 ).
Note 2:
Provisions in the Income Tax Assessment Act 1936 and in the Income Tax Assessment Act 1997 (other than in Part 3-90 ) referring only to consolidated groups do not apply to MEC groups.
consolidation transitional year
for a
*
member of a
*
consolidated group or a member of a
*
MEC group, is an income year for that member that satisfies both of the following conditions:
(a) the group is in existence during all or any part of that year;
(b) Subdivision 45-Q in Schedule 1 to the Taxation Administration Act 1953 (including that Subdivision as applied under Subdivision 45-S in that Schedule):
(i) does not apply at all to the * head company or the * provisional head company of the group during that year; or
(ii) starts to apply at any time during that year to the head company or the provisional head company of the group because of subsection 45-705(2) or subparagraph 45-705(3)(c)(ii) , (4)(d)(ii) or (iv), or subsection 45-915(2) or subparagraph 45-915(3)(c)(ii) , (4)(b)(ii) or (iv), in that Schedule.
Constituent Entity
, of an *Applicable MNE Group, has the same meaning as in the *Minimum Tax Act, as affected by section 28 of that Act.
constitution
of a company means the memorandum and articles of association of the company, or any other rules or document constituting the company or governing its activities.
constitutional corporation
means:
(a) a corporation to which paragraph 51(xx) of the Constitution applies; or
(b) a body corporate that is incorporated in a Territory.
constitutionally protected fund
means a fund that is declared by the regulations to be a constitutionally protected fund.
construction expenditure
has the meaning given by section
43-70
.
construction expenditure area
has the meaning given by section
43-75
.
contingent on aspects of the economic performance
has the meaning given by section
974-85
.
contingent on the economic performance
(Repealed by No 10 of 2016)
continuing shareholders
has the meaning given by sections
175-10
,
175-20
,
175-25
,
175-45
,
175-60
,
175-65
and
175-85
.
continuous disability policy
has the meaning given by section
9A
of the
Life Insurance Act 1995
.
contract of reinsurance
,
in respect of *life insurance policies, does not include a contract of reinsurance in respect of:
(a) the parts of *complying superannuation life insurance policies in respect of which the liabilities of the company that issued the policies are to be discharged out of a *complying superannuation asset pool; or
(b) policies that are *exempt life insurance policies.
contributions segment
has the meaning given by section
307-220
.
contributions-splitting superannuation benefit
has the meaning given by the regulations.
control a non-fixed trust
has the meaning given by Subdivision
269-E
in Schedule
2F
to the
Income Tax Assessment Act 1936
.
control (for value shifting purposes)
has the meaning given by sections
727-355
,
727-360
,
727-365
and
727-375
.
controlled foreign company
has the same meaning as in Part
X
of the
Income Tax Assessment Act 1936
.
controlled foreign corporate limited partnership
has the meaning given by section
820-760
.
controlled foreign entity debt
has the meaning given by section
820-885
.
controlled foreign entity equity
has the meaning given by section
820-890
.
controlled foreign trust
has the same meaning as in Part
X
of the
Income Tax Assessment Act 1936
.
controller (for CGT purposes)
: an entity is a
controller (for CGT purposes)
of a company in the circumstances mentioned in section
975-155
.
controller (for imputation purposes)
has the meaning given by subsections
207-130(5)
and
(6)
.
controlling individual
(Repealed by
No 55 of 2007
)
convertible interest
means a convertible interest in a company or in a trust or unit trust and:
(a) a convertible interest in a company is an interest of the kind referred to in item 4 of the table in subsection 974-75(1) ; and
(b) a convertible interest in a trust or unit trust is an interest that has the same or a similar effect in relation to the trust or unit trust.
convertible note
:
(a)
a
convertible note
of a company has the meaning given by section
82L
of the
Income Tax Assessment Act 1936
; and
(b) a convertible note of a trust or unit trust means a note that has the same or a similar effect in relation to the trust or unit trust.
co-operative company
has the same meaning as in
Division 9 of Part III
of the
Income Tax Assessment Act 1936
.
copyright collecting society
means either of the following bodies:
(a) a body that satisfies all of the following conditions:
(i) a declaration under the Copyright Act 1968 is in force in respect of the body;
(ii) the body is a company whose * constitution contains provisions about the distribution of amounts collected or * derived by it, including a requirement that a * member of the society cannot direct the body to pay an amount at a particular time;
(iii) other conditions prescribed by the regulations (if any) for the purposes of this subparagraph are met;
(b) a company that satisfies all of the following conditions:
(i) the company is incorporated under an *Australian law relating to companies;
(ii) the company has and maintains the purpose of collective administration of copyrights;
(iii) if the company has other purposes - these purposes are incidental to the purpose described in subparagraph (ii) or, if the company is the * resale royalty collecting society, relate to the company ' s functions or duties as resale royalty collecting society;
(iv) the company collects or derives, and distributes, income of a kind mentioned in paragraph 51-43(2)(a) or (b) ;
(v) the company ' s constitution allows any copyright owner, or his or her * agent, to be a member of the society, or allows all copyright owners of a particular type to be members;
(vi) the company ' s constitution prohibits the payment of * dividends;
(vii) the company ' s constitution contains provisions about the payment, out of amounts collected or derived by it, of the administrative costs of collecting those amounts;
(viii) the company ' s constitution contains provisions about the distribution of amounts collected or derived by it, including a requirement that an amount must be paid to a member as soon as is reasonably possible after the allocation of the amount to the member, as well as a requirement that a member cannot direct the company to pay an amount at a particular time;
(ix) the company ' s constitution, or contracts with members, contains such other provisions as are prescribed by the regulations (if any), being provisions necessary to ensure that the interests of members or their agents are protected adequately;
(x) the company ' s constitution requires the company to hold amounts on trust for copyright owners who are not members, or for members pending the payment of amounts to them;
(xi) the company ' s constitution, or contracts with members, allows all members to access the company ' s records;
(xii) other conditions prescribed by the regulations (if any) for the purposes of this subparagraph are met.
copyright income
(Repealed by No 126 of 2009)
core R
&
D activities
has the meaning given by section
355-25
.
core shipping activities
has the meaning given by section
51-110
.
corporate change
has the meaning given by section
166-175
.
corporate collective investment vehicle
or
CCIV
has the same meaning as in the
Corporations Act 2001
.
[ CCH Note: Definition of " corporate director " will be inserted by No 8 of 2022, s 3 and Sch 5 item 18, applicable to a CCIV sub-fund trust that has an ABN, even if the trust began to have an ABN before 1 July 2026. The definition will read:
]corporate director
of a *CCIV has the same meaning as in the Corporations Act 2001 .
corporate limited partnership
has the meaning given by section
94D
of the
Income Tax Assessment Act 1936
.
corporate tax entity
has the meaning given by section
960-115
.
corporate tax gross-up rate
, of an entity for an income year, means the amount worked out using the following formula:
| 100% − *Corporate tax rate for imputation purposes of the entity for the income year | ||
| *Corporate tax rate for imputation purposes of the entity for the income year |
(a) in relation to a company to which paragraph 23(2)(a) of the Income Tax Rates Act 1986 applies - means the rate of tax in respect of the taxable income of a company covered by that paragraph; or
(b) in relation to another entity - means the rate of tax in respect of the taxable income of a company covered by paragraph 23(2)(b) of that Act.
corporate tax rate for imputation purposes
, of an entity for an income year, means:
(a) unless paragraph (b) applies - the entity ' s *corporate tax rate for the income year, worked out on the assumptions that:
(i) the entity ' s *aggregated turnover for the income year is equal to its aggregated turnover for the previous income year; and
(ii) the entity ' s base rate entity passive income (within the meaning of the Income Tax Rates Act 1986 ) for the income year is equal to its base rate entity passive income for the previous income year; and
(iii) the entity ' s assessable income for the income year is equal to its assessable income for the previous income year; or
(b) if the entity did not exist in the previous income year - the rate of tax in respect of the taxable income of a company covered by paragraph 23(2)(a) of the Income Tax Rates Act 1986 .
corporate unit trust
(Repealed by No 53 of 2016)
cost
:
(a)
cost
of a
*
depreciating asset has the meaning given by Subdivision
40-C
; and
(b) cost of an item of * trading stock, in the case of an animal that you acquired by natural increase, has the meaning given by section 70-55 ; and
Note:
The cost of an animal acquired by natural increase before the 1997-98 income year is the cost price of the animal under former section 34 of the Income Tax Assessment Act 1936 . See subsection 70-55(2) of the Income Tax (Transitional Provisions) Act 1997 .
(c) cost of a *registered emissions unit has the meaning given by section 420-60 .
cost base
of a
*
CGT asset has the meaning given by Subdivision
110-A
.
cost-free debt capital
has the meaning given by section
820-946
.
COT transfer
of a loss has the meaning given by section
707-210
.
country by country reporting entity
has the meaning given by section
815-370
.
country by country reporting group
has the meaning given by section
815-380
.
country by country reporting parent
has the meaning given by section
815-375
.
CRC program
means the program administered by the Commonwealth known as the Cooperative Research Centres Program.
created
:
(a)
a
*
consolidated group is
created
from a
*
MEC group if the consolidated group comes into existence under section
703-55
at the time the MEC group ceases to exist (as mentioned in that section); and
(b) a MEC group is created from a consolidated group if:
(i) the MEC group comes into existence under section 719-40 when a * special conversion event happens to a * potential MEC group derived from an * eligible tier-1 company of a * top company; and
(ii) the eligible tier-1 company was the * head company of the consolidated group (as mentioned in paragraph 719-40(1)(b) ).
creditable acquisition
has the meaning given by section
195-1
of the
*
GST Act.
creditable importation
has the meaning given by section
195-1
of the
*
GST Act.
creditable purpose
has the meaning given by section
195-1
of the
*
GST Act.
credit absorption tax
has the meaning given by section
770-15
.
credit reporting bureau
has the meaning given by subsection
355-72(7)
in Schedule
1
to the
Taxation Administration Act 1953
.
cross-character allocation amount
, of a particular character, has the meaning given by section
276-330
.
cross staple arrangement
has the meaning given by section
12-436
in Schedule
1
to the
Taxation Administration Act 1953
.
Crown lease
has the meaning given by section
124-580
.
CRS
(short for Common Reporting Standard) has the meaning given by subsection
396-110(1)
in Schedule
1
to the
Taxation Administration Act 1953
.
CRS Commentary
has the meaning given by subsection
396-110(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
crystallised pre-July 83 amount
, in relation to a *superannuation interest, means the amount mentioned in paragraph
307-225(2)(e)
in relation to the interest.
crystallised reduction amount
has the meaning given by section
136-10
in Schedule
1
to the
Taxation Administration Act 1953
.
crystallised segment
has the meaning given by section
307-225
.
CS/RA class
(Repealed by No 101 of 2004)
CS/RA component
(Repealed by No 101 of 2004)
cultural organisation
(Repealed by No 40 of 2023)
currency exchange rate effect
has the meaning given by section
775-105
.
current annual turnover
(Repealed by
No 80 of 2007
)
current GST turnover
has the meaning given by section
195-1
of the
*
GST Act.
current pension
means a pension that has begun to be paid.
current termination value
of a *life insurance policy, or of the *net risk component of a life insurance policy, has the meaning given in prudential standards made under section
230A
of the
Life Insurance Act 1995
.
current year
means the income year for which you are working out your assessable income, deductions and
*
tax offsets.
custodian
has the meaning given by section
12-390
in Schedule
1
to the
Taxation Administration Act 1953
.
customs dealing
has the meaning given by the *Wine Tax Act.
customs duty
has the meaning given by the *GST Act.
dad and partner pay
(Repealed by No 4 of 2023)
[ CCH Note: Definition of " data standards " will be inserted by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 1384, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 30-5(4AA) . The definition will read:
]data standards
means standards made by the Registrar under section 13 of the Commonwealth Registers Act 2020 to the extent that they relate to the Registrar ' s functions or powers in connection with the A New Tax System (Australian Business Number) Act 1999 .Note:
The data standards deal with how the Registrar ' s functions and powers are performed and exercised. For example, they may provide for:
(a) the collection of information; and (b) the manner and form in which information is given to the Registrar; and (c) the manner and form of communication between the Registrar and persons who give information to the Registrar or seek to access information held by the Registrar.
datacasting transmitter licence
(Repealed by No 151 of 2020)
date of the settlement or order
, for a *structured settlement or a *structured order, has the meaning given by section
54-5
.
death benefits dependant
has the meaning given by section
302-195
.
death benefit termination payment
has the meaning given by subsection
82-130(3)
.
debenture
of a company or unit trust includes debenture stock, bonds, notes and any other securities of the company or trust, whether or not constituting a charge on its assets.
debit value
, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream, has the meaning given by section
294-145
.
debt account discharge liability
has the meaning given by section
133-120
in Schedule
1
to the
Taxation Administration Act 1953
.
debt capital
, of an entity and at a particular time, means any *debt interests issued by the entity that are still *on issue at that time.
debt deduction
has the meaning given by section
820-40
.
debt interest
in an entity has the meaning given by Subdivision
974-B
.
debt-like trust instrument
has the meaning given by section
276-505
.
debt property
has the meaning given by section
243-30
.
decreased value shares
(Repealed by No 90 of 2002)
decrease time
for a *direct value shift has the meaning given by section
725-155
.
decreasing adjustment
has the meaning given by section
195-1
of the *GST Act.
deduct
has the meaning given by sections
8-1
and
8-5
.
deductible gift recipient
has the meaning given by section
30-227
.
deducting hybrid
has the meaning given by section
832-550
.
deducting hybrid mismatch
has the meaning given by section
832-545
.
deduction
means an amount that you can deduct.
Note:
For income years before 1997-98, deduction has the meaning given by section 8-3 of the Income Tax (Transitional Provisions) Act 1997 .
(a) of a *deduction/non-inclusion mismatch - has the meaning given by subsections 832-105(1) and 832-105(2) ; and
(b) of a *deduction/deduction mismatch - has the meaning given by subsection 832-110(2) ; and
(c) of a *hybrid financial instrument mismatch - has the meaning given by subsection 832-200(2) ; and
(d) of a *hybrid payer mismatch - has the meaning given by subsection 832-305(2) ; and
(e) of a *reverse hybrid mismatch - has the meaning given by subsection 832-395(2) ; and
(f) of a *branch hybrid mismatch - has the meaning given by subsection 832-470(2) ; and
(g) of a *deducting hybrid mismatch - has the meaning given by subsection 832-545(2) ; and
(h) of an *offshore hybrid mismatch - means the *deduction component of the relevant hybrid financial instrument mismatch, hybrid payer mismatch, reverse hybrid mismatch, branch hybrid mismatch or deducting hybrid mismatch.
deduction/deduction mismatch
has the meaning given by section
832-110
.
deduction/non-inclusion mismatch
has the meaning given by section
832-105
.
deduction year
has the meaning given by section
170-20
.
default commutation notice
has the meaning given by section
136-10
in Schedule
1
to the
Taxation Administration Act 1953
.
Defence Department
(Repealed by No 110 of 2014)
Defence Minister
means the Minister administering section 1 of the
Defence Act 1903
.
Defence Secretary
means the Secretary of the Department administered by the *Defence Minister.
deferral reversal
, for a
*
superannuation interest, has the meaning given by section
133-25
in Schedule
1
to the
Taxation Administration Act 1953
.
deferred annuity
(Repealed by No 15 of 2007)
deferred BAS payer
, at a particular time, means an entity that has an obligation to notify the Commissioner of a *BAS amount at that time, other than:
(a) an entity that has an obligation at that time to give the Commissioner a *GST return for a monthly *tax period; or
(b) an entity whose obligation to notify a BAS amount at that time relates only to one or more of the following:
(i) an *amount withheld by a *medium withholder or a *large withholder;
(ii) the *PAYG instalment of an *annual payer.
Note:
You are therefore a deferred BAS payer if you have an obligation to give the Commissioner a GST return for a quarterly tax period or if you are a GST instalment payer within the meaning of the GST Act.
deferred roll-over gain
:
an asset has a deferred roll-over gain at a particular time if:
(a) before that time there was a roll-over under a provision or former provision of this Act in relation to a disposal or a *CGT event that happened in relation to the asset; and
(b) as a result of the roll-over all or part of a *capital gain from the disposal or CGT event was disregarded.
The amount of the deferred roll-over gain is equal to the amount of the capital gain that was disregarded, reduced by the amount (if any) by which the gain has been taken into account in working out a *net capital gain (section 102-5 ) or *net capital loss (section 102-10 ) in relation to the asset between the roll-over time and the particular time.
deferred roll-over loss
:
an asset has a deferred roll-over loss at a particular time if:
(a) before that time there was a roll-over under a provision or former provision of this Act in relation to a disposal or a *CGT event that happened in relation to the asset; and
(b) as a result of the roll-over all or part of a *capital loss from the disposal or CGT event was disregarded.
The amount of the deferred roll-over loss is equal to the amount of the capital loss that was disregarded, reduced by the amount (if any) by which the loss has been taken into account in working out a *net capital gain (section 102-5 ) or *net capital loss (section 102-10 ) in relation to the asset between the roll-over time and the particular time.
deferred superannuation income stream
has the meaning given by the
Superannuation Industry (Supervision) Regulations 1994
.
deferred to a debt account
, for a
*
superannuation interest, in relation to
*
assessed Division 293 tax, has the meaning given by section
133-10
in Schedule
1
to the
Taxation Administration Act 1953
.
deficit
:
(a)
section
205-40
sets out when a *franking account is in deficit; and
(b) section 208-125 sets out when an *exempting account is in deficit; and
(c) section 210-130 sets out when a *venture capital sub-account is in deficit.
defined benefit contributions
has the meaning given by sections
293-115
,
293-150
and
293-195
.
defined benefit income
has the meaning given by section
303-2
.
defined benefit income cap
has the meaning given by section
303-4
.
defined benefit interest
has the meaning given by section
291-175
.
defined benefit tax
has the meaning given by section
133-15
in Schedule
1
to the
Taxation Administration Act 1953
.
demerged entity
has the meaning given by section
125-70
.
demerger
has the meaning given by section
125-70
.
demerger dividend
has the meaning given by subsection
6(1)
of the
Income Tax Assessment Act 1936
.
demerger group
has the meaning given by section
125-65
.
demerger subsidiary
has the meaning given by section
125-65
.
demerging entity
has the meaning given by section
125-70
.
demutualise
: a mutual entity (within the meaning of the
Corporations Act 2001
) that issues one or more MCIs (within the meaning of that Act) is taken not to
demutualise
by doing so.
Note:
MCI is short for mutual capital instrument (see section 167AD of the Corporations Act 2001 ).
departing Australia superannuation payment
has the meaning given by section
301-170
.
depository entity
has the meaning given by section
166-260
.
depreciating asset
has the meaning given by section
40-30
.
depreciating asset lease
:
a
depreciating asset lease
is an agreement (including a renewal of an agreement) under which the entity that *holds the *depreciating asset grants a *right to use the asset to another entity. However, a
depreciating asset lease
does not include a
*
hire purchase agreement or a
*
short-term hire agreement.
Deputy Commissioner
means a Deputy Commissioner of Taxation.
derivative financial arrangement
has the meaning given by subsection
230-350(1)
.
derive
has a meaning affected by subsection
6-5(4)
.
design
of a uniform has the meaning given by subsection
34-25(2)
.
Designated Filing Entity
has the meaning given by section
127-25
.
designated infrastructure project
means an infrastructure project designated under section
415-70
.
designated infrastructure project entity
has the meaning given by section
415-20
.
Designated Local Entity
has the meaning given by section
127-15
.
determined member component
has the meaning given by section
276-205
.
determined trust component
has the meaning given by section
276-255
.
development assistance
for a
*
film has the meaning given by section
376-55
.
(a) in relation to a *film, means expenditure to the extent to which it is incurred in meeting the development costs for the film and includes expenditure to the extent to which it is incurred on any of the following:
(i) location surveys and other activities undertaken to assess locations for possible use in the film;
(ii) storyboarding for the film;
(iii) scriptwriting for the film;
(iv) research for the film;
(v) casting actors for the film;
(vi) developing a budget for the film;
(vii) developing a shooting schedule for the film; and
(b) in relation to a *digital game, has the meaning given by section 378-35 .
died in the line of duty
has the meaning given by subsection
302-195(3)
.
digital currency
has the same meaning as in the *GST Act.
digital game
has the meaning given by section
378-20
.
diminishing value method
has the meaning given by sections
40-70
and
40-72
.
diminishing value rate
(Repealed by No 77 of 2001)
dining facility
has the meaning given by section
32-60
.
direct equity interests
in a company are *shares in the company.
direct forestry expenditure
has the meaning given by section
394-45
.
direct participation interest
has the meaning given by section
960-190
.
direct roll-over replacement
has the meaning given by section
723-110
.
direct small business participation percentage
has the meaning given by section
152-70
.
direct SRWUIP payment
has the meaning given by subsection
59-67(3)
.
direct value shift
has the meaning given by section
725-145
.
direct voting percentage
in a company has the meaning given by section
768-550
.
disability policy
means a *life insurance policy under which a benefit is payable in the event of:
(a) the death, by accident or by some other cause stated in the contract, of the person whose life is insured (the insured ); or
(b) injury to, or disability of, the insured as a result of accident or sickness; or
(c) the insured being found to have a stated condition or disease;
but does not include a contract of consumer credit insurance within the meaning of the Insurance Contracts Act 1984 .
disability superannuation benefit
means a *superannuation benefit if:
(a) the benefit is paid to an individual because he or she suffers from ill-health (whether physical or mental); and
(b) 2 legally qualified medical practitioners have certified that, because of the ill-health, it is unlikely that the individual can ever be *gainfully employed in a capacity for which he or she is reasonably qualified because of education, experience or training.
disaggregated attributable decrease
:
section
727-775
sets out how to determine whether an *indirect value shift has produced a
disaggregated attributable decrease
in the *market value of an *equity or loan interest.
disaggregated attributable increase
:
section
727-805
sets out how to determine whether an *indirect value shift has produced a
disaggregated attributable increase
in the *market value of an *equity or loan interest.
disallow
:
(a)
a *net capital loss
-
has the meaning given by section
175-40
; or
(b) a *capital loss - has the meaning given by section 175-55 .
disallowed capital allowance percentage
has the meaning given by subsection
250-150(4)
.
discount
:
an *equity or loan interest is issued at a
discount
as provided in section
725-150
.
discount capital gain
has the meaning given by Subdivision
115-A
.
discount percentage
has the meaning given by Subdivision
115-B
.
discretionary benefits
means investment account benefits (as defined by section
14
of the
Life Insurance Act 1995
) that are regarded as non-participating benefits for the purposes of that Act solely because of the operation of Prudential Rules No. 22 in force under section
252
of that Act.
disease
has the meaning given by subsection
34-20(3)
.
disentitling event
has the meaning given by section
385-163
.
disposal year
has the meaning given by subsection
385-105(2)
.
dispose of
a *CGT asset: you
dispose of
a CGT asset (in its capacity as a CGT asset) in the circumstances specified in section
104-10
.
disregarded small fund assets
has the meaning given by section
295-387
.
distributable profits
of a company has the meaning given by section
317
of the
Income Tax Assessment Act 1936
.
distributing body
has the meaning given by section
128U
of the
Income Tax Assessment Act 1936
.
distribution
, by a *corporate tax entity, has the meaning given by section
960-120
.
distribution event
has the meaning given by subsection
207-120(5)
.
distribution statement
has the meaning given by section
202-80
.
diverted profits tax
means tax imposed by the
Diverted Profits Tax Act 2017
.
divestiture registration requirement
(Repealed by No 54 of 2016)
dividend
has the meaning given by subsections
6(1)
and
(4)
and
6BA(5)
and section
94L
of the
Income Tax Assessment Act 1936
.
dividend shareholding of less than 1%
(Repealed by No 147 of 2005)
dividend stake
has the meaning given by section
166-235
.
dividend stripping operation
has the meaning given by section
207-155
.
Division 6C land
has the meaning given by section
12-448
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 230 financial arrangement
: a *financial arrangement is a
Division 230 financial arrangement
if Division
230
applies in relation to your gains and losses from the arrangement.
(a) the Division 230 starting value of an asset or liability that is or is part of a *Division 230 financial arrangement to which Subdivision 230-C (fair value method) applies is the amount of the asset or the amount of the liability according to the relevant standards mentioned in section 230-230 that apply in relation to the arrangement; and
(b) the Division 230 starting value of an asset or liability that is or is part of a Division 230 financial arrangement to which Subdivision 230-D (foreign exchange retranslation method) applies is the value of the asset or the amount of the liability according to the relevant standards mentioned in section 230-280 that apply in relation to the arrangement; and
(c) the Division 230 starting value of an asset or liability that is or is part of a Division 230 financial arrangement to which Subdivision 230-F (reliance on financial reports method) applies is the value of the asset or the amount of the liability according to the relevant standards mentioned in section 230-420 that apply in relation to the arrangement.
Division 293 tax
means tax imposed by the
Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Act 2013
.
(a) the Income Tax Assessment Act 1997 , so far as it relates to the * Division 293 tax; and
(b) any Act that imposes Division 293 tax; and
(c) the Taxation Administration Act 1953 , so far as it relates to any Act covered by paragraphs (a) and (b) (or to so much of that Act as is covered); and
(d) any other Act, so far as it relates to any Act covered by paragraphs (a) to (c) (or to so much of that Act as is covered); and
(e) regulations and other legislative instruments under an Act, so far as they relate to any Act covered by paragraphs (a) to (d) (or to so much of that Act as is covered).
Division 405 payment
has the meaning given by section
405-5
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 405 report
has the meaning given by section
405-10
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 410 payment
has the meaning given by section
410-5
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 410 report
has the meaning given by section
410-10
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 415 payment
has the meaning given by section
415-5
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 417 payment
has the meaning given by section
417-5
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 832 control group
has the meaning given by section
832-205
.
documentary
has the meaning given by section
376-25
.
down interest
has the meaning given by section
725-155
.
DPT assessment
has the meaning given by section
145-10
in Schedule
1
to the
Taxation Administration Act 1953
.
dual inclusion income
has the meaning given by section
832-680
.
dual listed company arrangement
has the meaning given by section
125-60
.
dual listed company voting share
has the meaning given by section
125-60
.
dual resident investment company
has the meaning given by section
6F
of the
Income Tax Assessment Act 1936
.
dwelling
has the meaning given by section
118-115
.
early retirement scheme
has the meaning given by section
83-180
.
early retirement scheme payment
has the meaning given by section
83-180
.
early stage venture capital limited partnership
has the meaning given by subsection
118-407(4)
.
economic infrastructure facility
has the meaning given by section
12-439
in Schedule
1
to the
Taxation Administration Act 1953
.
Education Department
(Repealed by No 110 of 2014)
(a) a *superannuation guarantee education direction; or
(b) a *tax-records education direction.
Education Minister
(Repealed by No 15 of 2017)
Education Secretary
(Repealed by No 15 of 2017)
effective life
:
the
effective life
of a
*
depreciating asset is worked out under sections
40-95
,
40-100
,
40-102
,
40-103
,
40-105
and
40-110
.
effectively non-cancellable
has the meaning given by section
250-130
.
effectively non-contingent obligation
has the meaning given by section
974-135
.
election to rely on financial reports
has the meaning given by section
230-395
.
electronic payment
means a payment by way of electronic transmission, in an electronic format approved by the Commissioner.
electronic sales suppression tool
has the meaning given by section
8WAB
of the
Taxation Administration Act 1953
.
electronic signature
of an entity means a unique identification of the entity in electronic form that is approved by the Commissioner.
element taxed in the fund
has the meaning given by section
307-275
.
element untaxed in the fund
has the meaning given by section
307-275
.
eligible building site
(Repealed by No 77 of 2001)
eligible community housing provider
has the meaning given by section
980-10
.
eligible continuing substantial member
of a
*
former exempting entity has the meaning given by section
208-155
.
eligible Division 166 company
means a company:
(a) that is not a * widely held company; and
(b) in which:
(i) * voting stakes that carry rights to more than 50% of the voting power in the company; or
(ii) * dividend stakes that carry rights to receive more than 50% of any dividends that the company may pay; or
are beneficially owned (whether directly, or * indirectly through one or more interposed entities) by:
(iii) * capital stakes that carry rights to receive more than 50% of any distribution of capital of the company;
(iv) a widely held company; or
(v) an entity mentioned in subsection 166-245(2) that satisfies the condition in subsection 166-245(3) ; or
(vi) a * non-profit company; or
(vii) a charity; or
(viii) 2 or more entities mentioned in subparagraphs (iv) to (vii).
Note:
For subparagraphs (b)(i), (ii) and (iii), Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.
eligible for a granny flat interest
has the meaning given by subsection
137-10(2)
.
View history note
eligible mining operations
(Repealed by No 77 of 2001)
eligible mining or quarrying operations
(Repealed by No 77 of 2001)
eligible no-till seeder
(Repealed by No 83 of 2014)
eligible quarrying operations
(Repealed by No 77 of 2001)
eligible security
has the meaning given by section
775-190
.
eligible termination payment
(Repealed by No 15 of 2007)
eligible tier-1 company
has the meaning given by section
719-15
.
eligible venture capital investment
has the meaning given by sections
118-425
and
118-427
.
Note:
This meaning is also affected by subsection 118-435(2) .
eligible venture capital investor
has the meaning given by subsection
118-415(2)
.
eligible venture capital partner
has the meaning given by section
118-420
.
Emergency Management Minister
(Repealed by No 85 of 2013)
employee share scheme
has the meaning given by subsection
83A-10(2)
.
employee share trust
has the meaning given by subsection
130-85(4)
.
Employment Department
(Repealed by No 110 of 2014)
Employment Minister
(Repealed by No 110 of 2014)
Employment Secretary
means the Secretary of the Department responsible for employment policy.
employment termination payment
has the meaning given by section
82-130
.
end benefit
has the meaning given by section
133-130
in Schedule
1
to the
Taxation Administration Act 1953
.
endowment policy
has the meaning given by section
295-480
.
ends
, in relation to a
*
corporate change, has the meaning given by section
166-175
.
end user
of an asset has the meaning given by section
end value
of an asset has the meaning given by section
250-180
.
enterprise
has the meaning given by section
9-20
of the
*
GST Act.
entertainment
has the meaning given by section
32-10
.
entitled to child care benefit
(Repealed by No 49 of 2019)
entitlement to child care benefit
(Repealed by No 49 of 2019)
entitlement to an eligible cash bidding amount
(Repealed by No 77 of 2001)
entity
has the meaning given by section
960-100
.
entity EBITDA
has the meaning given by section
820-55
.
entity maintenance deduction
has the meaning given by subsection
86-65(2)
.
environmental organisation
(Repealed by No 40 of 2023)
environmental protection activities
has the meaning given by section
40-755
.
Environment Department
(Repealed by No 110 of 2014)
Environment Minister
means the Minister administering the
Environment Protection and Biodiversity Conservation Act 1999
.
Environment Secretary
means the Secretary of the Department administered by the *Environment Minister.
equity capital
of an entity at a particular time means the total of the following as at that time:
(a) the issue price (however described) of each * equity interest in the entity that is still * on issue, reduced by so much (if any) of the issue price as remains unpaid;
(b) the entity ' s general reserves and asset revaluation reserves;
(c) the entity ' s retained earnings;
(d) the entity ' s net earnings (if any) for the current year, reduced by:
(i) the * tax the entity expects to pay in respect of those net earnings; and
(ii) so much of each distribution to the entity ' s * members that has been made or declared as at that time as is attributable to the entity ' s earnings for the current year;
(e) if the entity is a * corporate tax entity - provisions for * distributions of profit;
(f) if paragraph (e) does not apply - provisions for distributions to the entity ' s * members;
reduced by the total of the following as at that time:
(g) the entity ' s negative retained earnings (if any);
(h) the entity ' s net loss (if any) for the current year.
equity holder
in a company means an entity that holds an
*
equity interest in the company.
equity interest
in an entity has the meaning given by:
(a) in the case of a company - Subdivision 974-C ; and
(b) in the case of a trust or partnership - section 820-930 .
equity interest
(Repealed by No 142 of 2003)
equity or loan interest
has the meaning given by section
727-520
.
ESS deferred taxing point
, for an *ESS interest, has the meaning given by sections
83A-115
and
83A-120
.
Note 1:
ESS is short for employee share scheme.
Note 2:
For ESS interests acquired before 1 July 2009, see subsection 83A-5(4) of the Income Tax (Transitional Provisions) Act 1997 .
ESS interest
, in a company, has the meaning given by subsection
83A-10(1)
.
Note:
ESS is short for employee share scheme.
ESVCLP
means an
*
early stage venture capital limited partnership.
ETP cap amount
has the meaning given by section
82-160
.
excepted MIT CSA income
has the meaning given by section
12-442
in Schedule
1
to the
Taxation Administration Act 1953
.
excepted trust
has the meaning given by section
272-100
in Schedule
2F
to the
Income Tax Assessment Act 1936
.
excess concessional contributions
has the meaning given by section
291-20
.
excess concessional contributions charge
(Repealed by No 45 of 2021)
excess concessional contributions determination
has the meaning given by section
97-5
in Schedule
1
to the
Taxation Administration Act 1953
.
excess concessional contributions tax
(Repealed by No 118 of 2013)
excess contributions tax
(Repealed by No 118 of 2013)
excess contributions tax assessment
(Repealed by No 118 of 2013)
excess deduction rules
(Repealed by No 77 of 2001)
excess exploration credit tax
means tax imposed by the
Excess Exploration Credit Tax Act 2015
.
excess foreign tax credits
(Repealed by
No 143 of 2007
)
excess franking offsets
has the meaning given by section
36-55
.
excess non-concessional contributions
has the meaning given by section
292-85
.
excess non-concessional contributions determination
has the meaning given by subsection
97-25(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
excess non-concessional contributions tax
means tax imposed under the
Superannuation (Excess Non-concessional Contributions Tax) Act 2007
.
excess non-concessional contributions tax assessment
has the meaning given by sections
292-230
and
292-310
.
excess tax EBITDA amount
has the meaning given by section
820-60
.
excess transfer balance
has the meaning given by section
294-30
and modified by section
294-140
.
excess transfer balance determination
has the meaning given by section
136-10
in Schedule
1
to the
Taxation Administration Act 1953
.
excess transfer balance earnings
has the meaning given by section
294-235
.
excess transfer balance period
has the meaning given by section
294-230
.
excess transfer balance tax
means tax imposed by the
Superannuation (Excess Transfer Balance Tax) Imposition Act 2016
.
excess untaxed roll-over amount
has the meaning given by section
306-15
.
exchangeable interest
has the meaning given by section
130-100
.
excisable goods
has the meaning given by the *GST Act.
Excise Acts
has the meaning given by the
Excise Act 1901
.
excise duty
has the meaning given by the *GST Act.
excise-equivalent goods
has the same meaning as in the
Customs Act 1901
.
(a) the Excise Act 1901 ; and
(b) any Act that imposes *excise duty; and
(c) the Taxation Administration Act 1953 , so far as it relates to any Act covered by paragraphs (a) and (b); and
(d) any other Act, so far as it relates to any Act covered by paragraphs (a) to (c) (or to so much of that Act as is covered); and
(e) regulations under any Act, so far as they relate to any Act covered by paragraphs (a) to (d) (or to so much of that Act as is covered).
excluded complying superannuation/FHSA life insurance policy
(Repealed by No 70 of 2015)
excluded complying superannuation life insurance policy
means a *life insurance policy that:
(a) provides only for *superannuation death benefits, *disability superannuation benefits or temporary disability benefits of a kind referred to in paragraph 295-460(c) , that are not *participating benefits; or
(b) is an *exempt life insurance policy.
excluded equity interest
has the meaning given by section
820-946
.
excluded exempt income
(Repealed by No 66 of 2003)
excluded foreign resident
has the meaning given by subsection
118-110(4)
.
excluded loss
has the meaning given by sections
175-5
and
175-40
.
excluded STB
has the same meaning as in section
24AT
of the
Income Tax Assessment Act 1936
.
excluded virtual PST life insurance policy
(Repealed by No 45 of 2008)
exempt Australian government agency
means:
(a) the Commonwealth, a State or a Territory; or
(b) an authority of the Commonwealth or of a State or a Territory whose * ordinary income and * statutory income is exempt from income tax because of Division 50 ; or
(c) an STB (within the meaning of Division 1AB of Part III of the Income Tax Assessment Act 1936 ) whose * ordinary income and * statutory income is exempt from income tax under that Division of that Part.
(a) an entity all of whose * ordinary income and * statutory income is exempt from income tax because of this Act or because of another * Commonwealth law, no matter what kind of ordinary income or statutory income the entity might have; or
(b) an * untaxable Commonwealth entity.
Note:
See section 11-5 for a list of entities of the kind referred to in paragraph (a).
exempt film income
for an income year is so much of the amount, or the sum of the amounts, to which section
26AG
of the
Income Tax Assessment Act 1936
applies in relation to you for the income year as is *exempt income.
exempt foreign employment income
means amounts that are exempt from tax under section
23AF
or
23AG
of the
Income Tax Assessment Act 1936
.
exempt foreign government agency
means:
(a) the government of a foreign country, or of part of a foreign country; or
(b) an authority of the government of a foreign country, if the authority is of a similar nature to an authority that is an * exempt Australian government agency; or
(c) an authority of the government of part of a foreign country, if the authority is of a similar nature to an authority that is an * exempt Australian government agency.
exempt income
has the meaning given by section
6-20
.
Note:
For income years before 1997-98, exempt income has the meaning given by section 6-20 of the Income Tax (Transitional Provisions) Act 1997 .
exempt income subject to withholding tax
(Repealed by No 66 of 2003)
exempting account
means an account that arises under section
208-110
.
exempting company
(Repealed by No 101 of 2006)
exempting credit
has the meaning given by section
208-115
.
exempting debit
has the meaning given by section
208-120
.
exempting deficit
has the meaning given by subsection
208-125(2)
.
exempting entity
has the meaning given by section
208-20
and affected by section
220-500
if relevant.
exempting percentage
has the meaning given by section
208-95
.
exempting surplus
has the meaning given by subsection
208-125(1)
.
exempt institution that is eligible for a refund
has the meaning given in section
207-115
.
Note:
This definition is affected by sections 207-119 to 207-136 .
exempt life insurance policy
has the meaning given by section
320-246
.
Note:
This definition is affected by section 320-247 .
exempt life insurance policy liabilities
of a
*
life insurance company means liabilities of the company under the
*
life insurance policies referred to in subsection
320-245(1)
.
expand
, in relation to an *active build to rent development, has the meaning given by subsection
43-152(3)
.
expected financial benefits
has the meaning given by section
250-95
.
expenditure
(Repealed by No 77 of 2001)
expenditure on software
(Repealed by No 77 of 2001)
exploration benefit
has the meaning given by subsection
40-1100(2)
.
exploration credit
means an exploration credit created, or to be created under Subdivision
418-D
.
exploration credits allocation
for an entity for an income year has the meaning given by section
418-81
.
exploration credits remainder
for an income year has the meaning given by subsection
418-103(2)
.
exploration investment
has the meaning given by section
418-111
.
exploration or prospecting
has a meaning affected by subsection
40-730(4)
.
exploration or prospecting authority
(Repealed by No 77 of 2001)
exploration or prospecting cash bidding payment
(Repealed by No 77 of 2001)
external indirect equity or loan interest
in a
*
subsidiary member of a
*
consolidated group or
*
MEC group has the meaning given by section
715-610
or
719-775
.
facility agreement
has the meaning given by section
775-185
.
failure to notify penalty
means the penalty worked out under
Division 2 of Part IIA
of the
Taxation Administration Act 1953
.
fair value election
has the meaning given by subsection
230-210(1)
.
Families Department
means the Department administered by the *Families Minister.
Families Minister
means the Minister administering the
Data-matching Program (Assistance and Tax) Act 1990
.
Families Secretary
means the Secretary of the *Families Department.
family law superannuation payment
has the meaning given by section
307-5
.
family trust
has the same meaning as in section
272-75
in Schedule 2F to the
Income Tax Assessment Act 1936
.
farm-in farm-out arrangement
has the meaning given by subsection
40-1100(1)
.
farm management deposit
has the meaning given by Subdivision
393-B
.
FATCA Agreement
has the meaning given by section
396-15
in Schedule
1
to the
Taxation Administration Act 1953
.
FDA credit
(Repealed by No 147 of 2005)
FDA debit
(Repealed by No 147 of 2005)
FDA declaration
(Repealed by No 147 of 2005)
FDA declaration percentage
(Repealed by No 147 of 2005)
FDA surplus
(Repealed by No 147 of 2005)
feature film
includes a *film that is an animated feature film, but does not include a film that is not *feature-length.
feature-length
: a *film is
feature-length
if:
(a) if the film is a large format film - the film is at least 45 minutes in duration; and
(b) otherwise - the film is more than 60 minutes in duration.
feedstock revenue
has the meaning given by subsection
355-445(4)
.
fencing asset
has the meaning given by subsection
40-520(4)
.
FHSA
(Repealed by No 70 of 2015)
FHSA component
(Repealed by No 70 of 2015)
FHSA holder
(Repealed by No 70 of 2015)
FHSA home acquisition payment
(Repealed by No 70 of 2015)
FHSA ineligibility payment
(Repealed by No 70 of 2015)
FHSA misuse tax
(Repealed by No 70 of 2015)
FHSA mortgage payment
(Repealed by No 70 of 2015)
FHSA payment conditions
(Repealed by No 70 of 2015)
FHSA provider
(Repealed by No 70 of 2015)
FHSA trust
(Repealed by No 70 of 2015)
FHSS eligible concessional contribution
for a *financial year means a *concessional contribution for the financial year that is eligible to be released under section
138-35
in Schedule
1
to the
Taxation Administration Act 1953
.
FHSS eligible non-concessional contribution
for a *financial year means a *non-concessional contribution for the financial year that is eligible to be released under section
138-35
in Schedule
1
to the
Taxation Administration Act 1953
.
FHSS maximum release amount
has the meaning given by section
138-25
in Schedule
1
to the
Taxation Administration Act 1953
.
FHSS releasable contributions amount
has the meaning given by subsection
138-30(1)
in Schedule
1
to the
Taxation Administration Act 1953
.
FHSS released amounts
has the meaning given by section
313-10
.
FIF
(Repealed by No 114 of 2010)
FIFO cost method
of working out the *value of a *registered emissions unit has the meaning given by section
420-52
.
film
means an aggregate of images, or of images and sounds, embodied in any material.
film authority
has the meaning given by section
376-55
.
film component
has the meaning given by section
36-40
.
film deductions
for an income year are the following:
(a) amounts you could deduct for the income year under former section 124ZAFA of the Income Tax Assessment Act 1936 ;
(b) amounts that you could deduct for the income year and to which former section 124ZAO of that Act applied in relation to you for the income year.
film licensed investment company
(Repealed by No 136 of 2012)
film loss
has the meaning given by section
36-40
.
Note:
Section 701-30 (rules about where an entity is not a subsidiary member for the whole of an income year) may affect a film loss.
final RUNL
has the meaning given by section
715-35
.
finance charge
(Repealed by
No 79 of 2010
)
Finance Department
means the Department administered by the *Finance Minister.
financed property
has the meaning given by section
243-30
.
Finance Minister
means the Minister administering the
Public Governance, Performance and Accountability Act 2013
.
Finance Secretary
means the Secretary of the *Finance Department.
financial arrangement
has the meaning given by sections
230-45
to
230-55
.
financial benefit
has the meaning given by section
974-160
.
financial entity
, at a particular time, means an entity other than an
*
ADI that is any of the following at that time:
(a) an entity that:
(i) is a registered corporation under the Financial Sector (Collection of Data) Act 2001 ; and
(ii) at the particular time, carries on a *business of providing finance, but not predominantly for the purposes of providing finance directly or indirectly to, or on behalf of, the entity ' s associates; and
(iii) in the income year in which the particular time occurs, derives all, or substantially all, of its profits from that business;
(b) a * securitisation vehicle;
(c) an entity that:
(i) is a financial services licensee within the meaning of the Corporations Act 2001 whose licence covers dealings in at least one of the financial products mentioned in paragraphs 764A(1)(a), (b) and (j) of that Act; or
and carries on a business of dealing in securities, but not predominantly for the purposes of dealing in securities with, or on behalf of, the entity ' s * associates;
(ii) under paragraph 911A(2)(h) or (l) of the Corporations Act 2001 , is exempt from the requirement to hold an Australian financial services licence for dealings in at least one of those financial products;
Note 1:
Paragraphs 764A(1)(a), (b) and (j) of the Corporations Act 2001 deal respectively with securities, managed investment products and government debentures, stocks and bonds.
Note 2:
Paragraph 911A(2)(h) of that Act exempts financial services provided to wholesale clients by a person who is regulated by an overseas regulatory authority if the provision of the service is covered by an exemption from the Australian Securities and Investments Commission (ASIC).
Note 3:
Paragraph 911A(2)(l) of that Act empowers ASIC to exempt financial services.
(d) an entity that:
(i) is a financial services licensee within the meaning of the Corporations Act 2001 whose licence covers dealings in derivatives within the meaning of that Act; or
and carries on a business of dealing in such derivatives, but not predominantly for the purposes of dealing in such derivatives with, or on behalf of, the entity ' s associates.
(ii) under paragraph 911A(2)(h) or (l) of the Corporations Act 2001 , is exempt from the requirement to hold an Australian financial services licence for dealings in such derivatives;
[ CCH Note: Definition of " financial entity " amended by No 76 of 2023, s 3 and Sch 2 item 659, by inserting " Chapter 7 of " in para (d)(i), effective 20 October 2023. This misdescribed amendment cannot be given effect.]
financial institution
has the meaning given by section
202A
of the
Income Tax Assessment Act 1936
.
financial investment
includes the following:
(a) a *share in a company;
(b) an interest in a managed investment scheme (within the meaning of the Corporations Act 2001 );
(c) a *forestry interest in a *forestry managed investment scheme;
(d) a right or option in respect of an investment referred to in paragraph (a), (b) or (c);
(e) an investment of a like nature to any of those referred to in paragraphs (a) to (d).
financial statement net third party interest expense
has the meaning given by section
820-54
.
financial year
means a period of 12 months beginning on 1 July.
financing arrangement
has the meaning given by section
974-130
.
has the meaning given by section
26-80
.
firearms surrender arrangements
means:
(a) an * Australian law; or
(b) administrative arrangements of a State or Territory;
implementing the agreement arising from the meeting of the Police Ministers held on 10 May 1996 concerning the surrender of prohibited firearms.
first continuity period
has the meaning given by section
165-120
.
first home super saver determination
has the meaning given by subsection
138-10(1)
in Schedule
1
to the
Taxation Administration Act 1953
.
first home super saver scheme
means the scheme set out in:
(a) Division 313 ; and
(b) Division 138 in Schedule 1 to the Taxation Administration Act 1953 ;
and other provisions as they relate to those Divisions.
first home super saver tax
means the tax imposed by the
First Home Super Saver Tax Act 2017
.
first use time
has the meaning given by section
41-30
.
Fiscal Year
has the same meaning as in the *Minimum Tax Act.
FITO allocation amount
, of a particular character, has the meaning given by section
276-335
.
(a) an entity has a fixed entitlement to a share of the income or capital of a company, partnership or trust if the entity has a fixed entitlement to that share within the meaning of Division 272 in Schedule 2F to the Income Tax Assessment Act 1936 ; and
(b) despite paragraph (a) of this definition, a *beneficiary of a *CCIV sub-fund trust is taken to have a fixed entitlement to a share of the income or capital of the trust as provided by section 195-120 of this Act.
Note:
Section 165-245 of this Act affects when an entity is taken to have held or had, directly or indirectly, a fixed entitlement to a share of income or capital of a company.
fixed ratio earnings limit
has the meaning given by section
820-51
.
fixed ratio test disallowed amount
has the meaning given by section
820-57
.
fixed trust
: a trust is a
fixed trust
if entities have
*
fixed entitlements to all of the income and capital of the trust.
Note:
AMITs are treated as fixed trusts (see section 276-55 ).
flexible care
has the same meaning as in the
Aged Care Act 1997
.
FLIC
(Repealed by No 164 of 2007)
FLIC concessional capital
(Repealed by No 164 of 2007)
flows indirectly
:
(a)
subsections
207-50(2)
,
(3)
and
(4)
set out the circumstances in which a
*
franked distribution flows indirectly to an entity; and
(b) subsection 207-50(5) sets out the circumstances in which a franked distribution flows indirectly through an entity; and
(c) section 208-175 sets out the circumstances in which a * distribution * franked with an exempting credit flows indirectly to an entity; and
(d) section 220-405 sets out the circumstances in which a supplementary dividend (as defined in section OB1 of the Income Tax Act 1994 of New Zealand) flows indirectly to an entity; and
(e) subsections 380-25(2) , (3) and (4) set out the circumstances in which * NRAS rent flows indirectly to an entity; and
(f) subsection 380-25(5) sets out the circumstances in which NRAS rent flows indirectly through an entity.
FLP
(Repealed by No 114 of 2010)
FMD provider
(short for farm management deposit provider) has the meaning given by subsection
393-20(3)
.
fodder storage asset
has the meaning given by subsection
40-520(3)
.
Foreign Affairs Minister
means the Minister administering the
International Development Association Act 1960
.
foreign bank
means an
*
ADI that is a
*
foreign entity.
foreign controlled Australian company
has the meaning given by section
820-785
.
foreign controlled Australian entity
has the meaning given by section
820-780
.
foreign controlled Australian partnership
has the meaning given by section
820-795
.
foreign controlled Australian trust
has the meaning given by section
820-790
.
foreign currency
means a currency other than:
(a) Australian currency; or
(b) *digital currency; or
(c) anything prescribed by the regulations for the purposes of this paragraph.
foreign currency hedge
has the meaning given by subsection
230-350(2)
.
foreign dividend account
(Repealed by No 147 of 2005)
foreign DMT tax
has the meaning given by section
770-150
.
foreign entity
means an entity that is not an
*
Australian entity.
foreign equity distribution
has the meaning given by section
768-10
.
foreign establishment amounts
(Repealed by No 83 of 2003)
foreign exchange retranslation election
has the meaning given by subsections
230-255(1)
and
(3)
.
foreign general insurance company
means a company that is a foreign resident, and whose sole or principal business is
*
insurance business.
foreign government agency
means:
(a) the government of a foreign country or of part of a foreign country; or
(b) an authority of the government of a foreign country; or
(c) an authority of the government of part of a foreign country.
(a) *foreign DMT tax; and
(b) *foreign IIR tax; and
(c) *foreign UTPR tax.
foreign hybrid
has the meaning given by section
830-5
.
foreign hybrid company
has the meaning given by section
830-15
.
foreign hybrid limited partnership
has the meaning given by section
830-10
.
foreign hybrid mismatch rules
means a *foreign law corresponding to any of Subdivisions
832-C
,
832-D
,
832-E
,
832-F
,
832-G
or
832-H
(which are about hybrid mismatches).
foreign hybrid net capital loss amount
has the meaning given by section
830-55
.
foreign hybrid revenue loss amount
has the meaning given by paragraph
830-45(1)(a)
.
foreign hybrid tax provisions
means:
(a) the Income Tax Assessment Act 1936 (other than Division 5A of Part III ); and
(b) this Act (other than Subdivision 830-A and 830-B ); and
(c) an Act that imposes any tax payable under the Income Tax Assessment Act 1936 or this Act; and
(d)the Income Tax Rates Act 1986 ; and
(e) the Taxation Administration Act 1953 , so far as it relates to an Act covered by paragraph (a), (b) or (c); and
(f) any other Act, so far as it relates to an Act covered by paragraph (a), (b), (c), (d) or (e); and
(g) regulations under an Act covered by any of the preceding paragraphs.
foreign IIR tax
means tax that:
(a) is payable under a *foreign law; and
(b) satisfies the requirements of the IIR (within the meaning of the *GloBE Rules).
foreign income tax
has the meaning given by section
770-15
.
foreign income tax deduction
has the meaning given by section
832-120
.
foreign investment fund
(Repealed by No 114 of 2010)
foreign law
means a law of a foreign country.
Note:
Foreign country is defined in section 2B of the Acts Interpretation Act 1901 .
foreign life insurance company
means a company that is a foreign resident, and whose sole or principal business is life insurance.
foreign pension fund
has the meaning given by subsection
840-805(4B)
.
foreign public official
has the same meaning as in section 70.1 of the
Criminal Code
.
foreign resident
means a person who is not a resident of Australia for the purposes of the
Income Tax Assessment Act 1936
.
Note:
Foreign resident is not asterisked in this Act.
foreign resident life insurance policy
means a
*
life insurance policy that:
(a) was issued by a company in the course of carrying on a * business at or through the * permanent establishment of the company in a foreign country; and
(b) is held by an entity that is neither an * associate of the company nor a Part X Australian resident (within the meaning of Part X of the Income Tax Assessment Act 1936 ).
foreign revenue claim
has the meaning given by section
263-10
in Schedule
1
to the
Taxation Administration Act 1953
.
foreign service of document request
has the meaning given by section
263-60
in Schedule
1
to the
Taxation Administration Act 1953
.
foreign superannuation fund
(Repealed by No 58 of 2006).
foreign superannuation fund
:
(a)
a
*
superannuation fund is a
foreign superannuation fund
at a time if the fund is not an
*
Australian superannuation fund at that time; and
(b) a superannuation fund is a foreign superannuation fund for an income year if the fund is not an Australian superannuation fund for the income year.
foreign tax
(Repealed by
No 143 of 2007
)
foreign tax period
, in relation to an entity, in relation to a foreign tax imposed by a tax law of a foreign country, means the accounting period used by the entity for the purposes of determining the tax base under that law.
foreign trust for CGT purposes
means a trust that is not a
*
resident trust for CGT purposes.
foreign UTPR tax
means tax that:
(a) is payable under a *foreign law; and
(b) satisfies the requirements of the UTPR (within the meaning of the *GloBE Rules).
foreign venture capital fund of funds
has the meaning given by subsections
118-420(4)
and
(5)
.
forestry interest
in a
*
forestry managed investment scheme has the meaning given by subsection
394-15(3)
.
forestry managed investment scheme
has the meaning given by subsection
394-15(1)
.
forestry manager
of a
*
forestry managed investment scheme has the meaning given by subsection
394-15(2)
.
forestry road
has the meaning given by section
43-72
.
forex cost base
has the meaning given by section
775-85
.
forex entitlement base
has the meaning given by section
775-90
.
forex realisation event
means any of the forex realisation events described in Division
775
.
forex realisation gain
:
for each
*
forex realisation event a
forex realisation gain
is worked out in the way described in the event.
forex realisation loss
:
for each
*
forex realisation event a
forex realisation loss
is worked out in the way described in the event.
forgive
a debt has the meaning given by sections
245-35
,
245-36
and
245-37
.
Note:
Subdivisions 245-C to 245-G (about forgiveness of commercial debts) apply to certain arrangements as if the arrangements were forgiveness of debts: see section 245-45 .
forgiveness income year
,
in relation to a debt that is *forgiven, means the income year in which the debt is forgiven.
form approved by Industry Innovation and Science Australia
has the same meaning as in section
33-5
of the
Venture Capital Act 2002
.
form approved by the Venture Capital Registration Board
(Repealed by
No 164 of 2007
)
form approved by the PDF Board
(Repealed by
No 78 of 2007
)
former exempting entity
has the meaning given by section
208-50
.
fourth element expenditure
has the meaning given by section
104-185
.
frankable distribution
has the meaning given by section
202-40
.
frankable with a venture capital credit
has the meaning given by section
210-50
.
franked distribution
:
a
*
distribution is franked if an entity
*
franks it in accordance with section
202-5
.
franked part
of a
*
distribution has the meaning given by section
976-1
.
franking account
means an account that arises under section
205-10
.
Note 1:
Section 205-15 sets out when a credit arises in that account.
Note 2:
Section 205-30 sets out when a debit arises in that account.
franking account balance
has the meaning given by section
214-30
.
franking assessment
has the meaning given by subsection
214-60(1)
and affected by section
214-100
.
franking credit
has the meaning given by section
205-15
.
franking debit
has the meaning given by section
205-30
.
franking deficit
has the meaning given by subsection
205-40(2)
.
franking deficit tax
means tax imposed under the
New Business Tax System (Franking Deficit Tax) Act 2002
.
Note:
That Act imposes tax where it is payable under section 205-45 of this Act.
franking entity
has the meaning given by section
202-15
.
franking percentage
has the meaning given by section
203-35
.
franking period
has the meaning given by sections
203-40
and
203-45
.
franking return
means a return required under Subdivision
214-A
.
franking surplus
has the meaning given by subsection
205-40(1)
.
franking tax
has the meaning given by section
214-40
.
franks with an exempting credit
has the meaning given by section
208-60
.
frank with a venture capital credit
has the meaning given by section
210-30
.
free carbon unit
(Repealed by No 83 of 2014)
(a) a body that is a friendly society for the purposes of the Life Insurance Act 1995 ; or
(b) a body that is registered or incorporated as a friendly society under a *State law or a *Territory law; or
(c) a body that is permitted, by a *State law or a *Territory law, to assume or use the expression friendly society ; or
(d) a body that, immediately before the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 , was registered or incorporated as a friendly society under a *State law or a *Territory law.
friendly society dispensary
means an approved pharmacist (within the meaning of Part VII of the
National Health Act 1953
) that is:
(a) a * friendly society; or
(b) a body carrying on * business for the benefit of members of a * friendly society.
(a) a fringe benefit as defined by subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 ; and
(b) a benefit that would be a fringe benefit (as defined by subsection 136(1) of that Act) if paragraphs (d) and (e) of the definition of employer in that subsection of that Act were omitted.
fringe benefits taxable amount
has the meaning given by section
5B
of the
Fringe Benefits Tax Assessment Act 1986
.
fringe benefits tax law
means a provision of an Act or regulations under which the extent of liability for tax imposed by the
Fringe Benefits Tax Act 1986
is worked out.
FRT disallowed amount
: see
fixed ratio test disallowed amount
.
FS assessment debt
means an FS assessment debt under:
(a) subsection 19AB(2) of the Social Security Act 1991 ; or
(b) the Student Assistance Act 1973 as in force at a time on or after 1 July 1998.
FTB amount
for an income year means an amount of family tax benefit (within the meaning of the
A New Tax System (Family Assistance) (Administration) Act 1999
) to which an individual is entitled in respect of the income year.
fuel tax credit
has the meaning given by section
110-5
of the
Fuel Tax Act 2006
.
fuel tax law
has the meaning given by section
110-5
of the
Fuel Tax Act 2006
.
fuel tax return
means a return under the
Fuel Tax Act 2006
.
fuel tax return period
has the meaning given by section
61-20
of the
Fuel Tax Act 2006
.
full self-assessment taxpayer
(Repealed by
No 79 of 2010
)
full year amounts
has the meaning given by section
165-60
.
full year car deduction
(Repealed by No 162 of 2015)
full year deductions
has the meaning given by subsections
165-55(5)
and
(6)
.
fund payment
has the meaning given by sections
12-405
and
12A-110
in Schedule
1
to the
Taxation Administration Act 1953
.
fund-raising event
has the meaning given by section
40-165
of the
*
GST Act, as modified by the omission of subparagraph
40-165(1)(b)(i)
of that Act.
funeral policy
means a
*
life insurance policy issued by a
*
friendly society for the sole purpose of providing benefits to pay for the funeral of the insured person.
Future Fund Board
means the Future Fund Board of Guardians established by section 34 of the
Future Fund Act 2006
.
gainfully employed
means employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment.
gaining entity
for an
*
indirect value shift has the meaning given by section
727-150
.
GDP-adjusted notional tax
has the meaning given by section
45-405
in Schedule
1
to the
Taxation Administration Act 1953
.
GDP amount
for a *quarter has the meaning given by section
45-405
in Schedule
1
to the
Taxation Administration Act 1953
.
general class investor
has the meaning given by subsections
820-46(2)
and
820-583(1)
.
general company tax rate
(Repealed by No 97 of 2008)
general deduction
has the meaning given by section
8-1
.
general insurance company
means a body corporate that carries on
*
insurance business.
general insurance policy
means a policy of insurance that is not a
*
life insurance policy or an
*
annuity instrument.
general interest charge
means the charge worked out under Part
IIA
of the
Taxation Administration Act 1953
.
general partner
means a partner of a *limited partnership whose liability in relation to the partnership is not limited.
general small business pool
has the meaning given by section
328-185
.
general STS pool
(Repealed by
No 80 of 2007
)
general transfer balance cap
has the meaning given by section
294-35
.
genuine prospector
(Repealed by No 77 of 2001)
genuine redundancy payment
has the meaning given by section
83-175
.
geothermal energy extraction
has the meaning given by subsection
15-40(4)
.
geothermal energy extraction right
(Repealed by No 96 of 2014)
geothermal energy resources
means matter occurring naturally within the Earth and containing energy as heat.
geothermal exploration information
has the meaning given by subsection
15-40(3)
.
geothermal exploration right
(Repealed by No 96 of 2014)
global financial statements
has the meaning given by section
960-570
.
global GST amount
has the meaning given by section 195-1 of the
*
GST Act.
(a) of working out whether a company has an unrealised net loss at a particular time, has the meaning given by section 165-115E ; and
(b) of working out whether a company has an adjusted unrealised loss at a particular time, has the meaning given by section 165-115U .
global parent entity
has the meaning given by section
960-560
.
GloBE Entity
means an Entity (within the meaning of the *Minimum Tax Act).
GloBE Excluded Entity
means an Excluded Entity (within the meaning of the *Minimum Tax Act).
GloBE Implementation Framework
:
(a) means the GloBE Implementation Framework (within the meaning of the *Minimum Tax Rules); or
(b) if the expression GloBE Implementation Framework is not used in the Minimum Tax Rules - has the meaning given by the regulations.
GloBE Information Return
has the meaning given by section
127-5
in Schedule
1
to the
Taxation Administration Act 1953
.
(a) means an Investment Entity (within the meaning of the *Minimum Tax Rules); or
(b) if the expression Investment Entity is not used in the Minimum Tax Rules - has the meaning given by the regulations.
GloBE Joint Venture
means a Joint Venture (within the meaning of the *Minimum Tax Act).
GloBE JV Subsidiary
means a JV Subsidiary (within the meaning of the *Minimum Tax Act).
GloBE located
: a *GloBE Entity or *GloBE Permanent Establishment is
GloBE located
in a jurisdiction for a *Fiscal Year if the GloBE Entity or GloBE Permanent Establishment is located in that jurisdiction for the Fiscal Year for the purposes of the *Minimum Tax Act.
GloBE Main Entity
, in respect of a *GloBE Permanent Establishment, means the Main Entity (within the meaning of the *Minimum Tax Act) in respect of the GloBE Permanent Establishment.
GloBE partnership
has the meaning given by subsection
128-20(6)
in Schedule
1
to the
Taxation Administration Act 1953
.
GloBE Permanent Establishment
means a Permanent Establishment (within the meaning of the *Minimum Tax Act).
GloBE Rules
has the same meaning as in the *Minimum Tax Act.
GloBE Securitisation Entity
means a Securitisation Entity (within the meaning of the *Minimum Tax Act).
GloBE Transition Year
, of an *Applicable MNE Group:
(a) means the Applicable MNE Group ' s Transition Year (within the meaning of the *Minimum Tax Rules) for Australia; or
(b) if the expression Transition Year is not used in the Minimum Tax Rules - has the meaning given by the regulations.
GloBE Ultimate Parent Entity
, of an *Applicable MNE Group, means the Ultimate Parent Entity (within the meaning of the *Minimum Tax Act, as affected by section 28 of that Act) of the Applicable MNE Group.
goes for at least 4 hours
, in relation to a
*
seminar, has the meaning given by subsection
32-65(2)
.
government entity
(Repealed by No 41 of 2005)
government entity
†
has the meaning given by section
41
of the
A New Tax System (Australian Business Number) Act 1999
.
[ † CCH Note: This second definition of " government entity " was inserted by Act No 91 of 2000.]
Government FHSA contribution
(Repealed by No 70 of 2015)
GR group
has the meaning given by section
820-53
.
GR group member
has the meaning given by section
820-53
.
GR group net third party interest expense
has the meaning given by section
820-54
.
GR group parent
has the meaning given by section
820-53
.
granny flat interest
has the meaning given by subsection
137-10(1)
.
greater benefit from franking credits
has a meaning affected by subsections
204-30(7)
and (8).
(a) under an * indirect value shift, has the meaning given by subsection 727-150(3) ; and
(b) under a * presumed indirect value shift, has the meaning given by subsection 727-855(1) .
greenfields minerals expenditure
has the meaning given by section
418-80
.
greenfields minerals explorer
has the meaning given by section
418-75
.
gross averaging amount
has the meaning given by section
392-70
.
gross forgiven amount
has the meaning given by section
245-75
.
gross vehicle mass
of a vehicle means:
(a) the road weight specified by the manufacturer of the vehicle as the maximum design weight capacity of the vehicle; or
(b) in the absence of such a specification, the sum of:
(i) the weight of the vehicle; and
(ii) the weight of the maximum load for which the vehicle was designed (including the weight of the driver and a full tank of fuel, if applicable).
group EBITDA
has the meaning given by section
820-55
.
Group Entity
, of an *Applicable MNE Group, has the same meaning as in the *Minimum Tax Act.
group heading
has the meaning given by section
950-100
.
group ratio
has the meaning given by section
820-53
.
group ratio earnings limit
has the meaning given by section
820-51
.
group turnover
(Repealed by
No 80 of 2007
)
group turnover
†
(Repealed by No 41 of 2005)
GST
has the meaning given by section
195-1
of the
*
GST Act.
GST Act
means the
A New Tax System (Goods and Services Tax) Act 1999
.
GST-free
has the meaning given by section
195-1
of the
*
GST Act.
GST group
has the meaning given by section
195-1
of the
*
GST Act.
GST inclusive market value
has the meaning given by section
195-1
of the
*
GST Act.
GST joint venture
has the meaning given by section
51-5
of the
*
GST Act.
GST joint venture
†
(Repealed by
No 143 of 2007
)
[ † CCH Note: This second definition of " GST joint venture " was inserted by No 176 of 1999.]
GST law
has the meaning given by section
195-1
of the
*
GST Act.
GST return
has the same meaning as in section
195-1
of the
*
GST Act.
GST turnover
has the meaning given by section
195-1
of the
*
GST Act.
guaranteed residual value
for an asset that is put to a tax preferred use has the meaning given by subsection
250-85(3)
.
guarantee period
, for an annuity provided under a *structured settlement or a *structured order, has the meaning given by subsection
54-35(2)
.
Guide
has the meaning given by section
950-150
.
harm prevention charity
(Repealed by No 40 of 2023)
(a) in relation to a * consolidated group or * consolidatable group - has the meaning given by section 703-15 ; and
(b) of a * MEC group - has the meaning given by section 719-75 .
head entity
of a demerger group has the meaning given by section
125-65
.
Health Department
(Repealed by No 110 of 2014)
Health Minister
means the Minister administering the
National Health Act 1953
.
Health Secretary
means the Secretary of the Department administered by the *Health Minister.
HECS-HELP benefit
(Repealed by No 55 of 2016)
hedged item
has the meaning given by subsections
230-335(10)
and
(11)
.
hedging financial arrangement
has the meaning given by subsections
230-335(1)
to
(9)
and sections
230-340
and
230-345
.
hedging financial arrangement election
has the meaning given by section
230-315
.
Heritage Department
(Repealed by No 110 of 2014)
Heritage Minister
(Repealed by No 110 of 2014)
Heritage Secretary
means the Secretary of the Department administered by the Minister administering the
Australian Heritage Council Act 2003
.
HIH company
has the meaning given by section
322-5
.
HIH Trust
has the meaning given by section
322-5
.
hire purchase agreement
means:
(a) a contract for the hire of goods where:
(i) the hirer has the right, obligation or contingent obligation to buy the goods; and
Note:
An example of a contingent obligation is a put option.
(ii) the charge that is or may be made for the hire, together with any other amount payable under the contract (including an amount to buy the goods or to exercise an option to do so), exceeds the price of the goods; and
(iii) title in the goods does not pass to the hirer until the option referred to in subparagraph (a)(i) is exercised; or
(b) an agreement for the purchase of goods by instalments where title in the goods does not pass until the final instalment is paid.
(a) hold a car for the purposes of Division 28 has the meaning given by section 28-90 ; and
(b) hold a * depreciating asset has the meaning given by section 40-40 ; and
(c) hold a *registered emissions unit has the meaning given by section 420-12 .
(d) (Repealed by No 96 of 2014)
horse opening value
has the meaning given by subsection
70-65(1)
.
horse reduction amount
has the meaning given by subsection
70-65(2)
.
horticultural plant
has the meaning given by section
40-520
.
horticulture
has the meaning given by section
40-535
.
horticulture business
(Repealed by No 77 of 2001)
hotel building
has the meaning given by section
43-95
.
(a) residential accommodation; or
(b) health, education, recreation or similar facilities, or facilities for meals; or
(c) works carried out directly in connection with such accommodation or facilities, including works for providing water, light, power, access or communications.
Housing Department
(Repealed by No 110 of 2014)
Housing Minister
(Repealed by No 110 of 2014)
Housing Secretary
means the Secretary of the Department administered by the Minister administering the
National Rental Affordability Scheme Act 2008
.
hybrid financial instrument mismatch
has the meaning given by section
832-200
.
hybrid mismatch
has the meaning given by sections
832-215
,
832-230
,
832-310
,
832-400
,
832-475
,
832-545
and
832-620
.
hybrid payer
has the meaning given by section
832-320
.
hybrid payer mismatch
has the meaning given by section
832-305
.
hypothetical tax position
has the meaning given by section
45-615
in Schedule
1
to the
Taxation Administration Act 1953
.
IGIS official
(short for Inspector-General of Intelligence and Security official) means:
(a) the Inspector-General of Intelligence and Security; or
(b) any other person covered by subsection 32(1) of the Inspector-General of Intelligence and Security Act 1986 .
immediate annuity
means an
*
annuity that is presently payable.
Immigration Department
means the Department administered by the Minister administering the
Migration Act 1958
.
Immigration Minister
(Repealed by No 110 of 2014)
Immigration Secretary
means the Secretary of the *Immigration Department.
import
has the meaning given by section
195-1
of the
*
GST Act.
import declaration
has the meaning given by the
Customs Act 1901
.
import declaration advice
has the meaning given by the
Customs Act 1901
.
imported hybrid mismatch
has the meaning given by section
832-615
.
importing payment
, in relation to an *offshore hybrid mismatch, has the meaning given by section
832-625
.
improvement threshold
has the meaning given by section
108-85
.
imputation benefit
has the meaning given by subsection
204-30(6)
.
imputation system
means the rules in Part
3-6
.
IMR capital gain
(Repealed by No 70 of 2015)