Income Tax Assessment Act 1997



Division 716 - Miscellaneous special rules  

Subdivision 716-Z - Other  

SECTION 716-850   Grossing up threshold amounts for periods of less than 365 days  


Under some provisions of this Act, something that is relevant to working out:

(a) an entity ' s taxable income (if any); or

(b) the income tax (if any) payable on an entity ' s taxable income; or

(c) an entity ' s loss (if any) of a particular * sort;

is determined on the basis of a comparison between an amount worked out for an income year, or an amount *derived from 2 or more such amounts, and another amount.


The other amount assumes an income year of 365 days.

This section affects how such a provision (the threshold provision ) operates for the purposes of subsection 701-30(3) , which requires each thing covered by paragraph (1)(a), (b) or (c) of this section to be worked out for an entity for a non-membership period (under section 701-30 ) during an income year.


A non-membership period is a period (of less than an income year) when the entity is not a subsidiary member of any consolidated group.

An amount that would otherwise be worked out for the non-membership period, for the purposes of the comparison under the threshold provision, is instead:

(a) to be worked out by reference to the period (the reference period ) starting at the start of the income year and ending at the end of the non-membership period; and

(b) then to be grossed up by multiplying it by this fraction:

Number of days in reference period


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