Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 25 - Some amounts you can deduct  

Operative provisions  

SECTION 25-115   Deduction for payment of rent from land investment by operating entity to asset entity in relation to approved economic infrastructure facility  

25-115(1)  
An entity that is an *operating entity in relation to a *cross staple arrangement can deduct an amount, for an income year, of *rent from land investment if:


(a) another entity derives or receives the amount from the operating entity:


(i) in the income year; and

(ii) on or after 27 March 2018; and


(b) the cross staple arrangement was entered into in relation to:


(i) a facility that is covered by section 12-439 in Schedule 1 to the Taxation Administration Act 1953 at a time in the income year; or

(ii) an improvement to a facility that is covered by that section at a time in the income year; and


(c) the other entity is an *asset entity in relation to the cross staple arrangement; and


(d) apart from this subsection, the operating entity could otherwise deduct the amount under this Act; and


(e) the amount is *excepted MIT CSA income of the asset entity for the income year; and


(f) each entity that is a *stapled entity in relation to the cross staple arrangement has made a choice in accordance with subsection (3).

25-115(2)  
If the *asset entity is not a *managed investment trust in relation to the income year, for the purposes of paragraph (1)(e), treat it as a managed investment trust in relation to the income year.

25-115(3)  
An entity makes a choice in accordance with this subsection if:


(a) the entity makes the choice in the *approved form; and


(b) the entity makes the choice before:


(i) the start of the income year in which the asset is first put to use; or

(ii) a later time allowed by the Commissioner; and


(c) the entity gives the choice to the Commissioner within 60 days after the entity makes the choice.

25-115(4)  
The choice cannot be revoked.


 

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