Income Tax Assessment Act 1997



Division 230 - Taxation of financial arrangements  

Subdivision 230-A - Core rules  

General rules

SECTION 230-70   Apportionment when financial benefit received or right ceases  

Apply subsection (2) in working out whether you make, or will make, a gain or loss (and the amount of the gain or loss) at a time when:

(a) you receive a particular *financial benefit under a *financial arrangement; or

(b) one of your rights under a financial arrangement ceases.

The gain or loss is to be calculated in nominal (and not *present value) terms.


You must have regard to the extent to which the *financial benefits that you have provided, or are to provide or might provide, under the *financial arrangement are reasonably attributable, at the time mentioned in subsection (1), to the benefit or right referred to in paragraph (1)(a) or (b).

Any attribution made under subsection (2) must reflect appropriate and commercially accepted valuation principles that properly take into account:

(a) the nature of the rights and obligations under the *financial arrangement; and

(b) the risks associated with each *financial benefit, right and obligation under the arrangement; and

(c) the time value of money.

(Repealed by No 85 of 2013)


Generally, no financial benefit you have provided, or are to provide or might provide, under a financial arrangement is reasonably attributable to an amount you receive that is in the nature of interest.


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