Commonwealth: Income Tax (Transitional Provisions) Act 1997 (Cth)

Income Tax (Transitional Provisions) Act 1997 No. 40, 1997 Compilation No. 99 Compilation date: 1 July 2024 Includes amendments: Act No. 52, 2024 Registered: 11 July 2024 About this compilation This compilation This is a compilation of the Income Tax (Transitional Provisions) Act 1997 that shows the text of the law as amended and in force on 1 July 2024 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Chapter 1—Introduction and core provisions Part 1‑1—Preliminary Division 1—Preliminary 1‑1 Short title 1‑5 Commencement 1‑7 Administration of this Act 1‑10 Definitions and rules for interpreting this Act Part 1‑3—Core Provisions Division 4—How to work out the income tax payable on your taxable income 4‑1 Application of the Income Tax Assessment Act 1997 4‑11 Temporary budget repair levy Division 5—How to work out when to pay your income tax Subdivision 5‑A—How to work out when to pay your income tax 5‑5 Application of Division 5 of the Income Tax Assessment Act 1997 5‑7 References in tax sharing agreements to former section 204 5‑10 General interest charge liabilities under former subsection 204(3) 5‑15 Application of section 5‑15 of the Income Tax Assessment Act 1997 Division 6—Assessable income and exempt income 6‑2 Effect of this Division 6‑3 Assessable income for income years before 1997‑98 6‑20 Exempt income for income years before 1997‑98 Division 8—Deductions 8‑2 Effect of this Division 8‑3 Deductions for income years before 1997‑98 8‑10 No double deductions for income year before 1997‑98 and income year after 1996‑97 Chapter 2—Liability rules of general application Part 2‑1—Assessable income Division 15—Some items of assessable income 15‑1 General application provision 15‑10 Application of section 15‑10 of the Income Tax Assessment Act 1997 to bounties and subsidies 15‑15 Application of section 15‑15 of the Income Tax Assessment Act 1997 to profit‑making undertaking or plan 15‑20 Application of section 15‑20 of the Income Tax Assessment Act 1997 to royalties 15‑30 Application of section 15‑30 of the Income Tax Assessment Act 1997 to insurance or indemnity payments 15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax Division 20—Items included to reverse the effect of past deductions Subdivision 20‑A—Insurance, indemnity or recoupment for deductible expenses 20‑1 Application of Subdivision 20‑A of the Income Tax Assessment Act 1997 Subdivision 20‑B—Disposal of a car for which lease payments have been deducted 20‑100 Application of Subdivision 20‑B of the Income Tax Assessment Act 1997 20‑105 The cost of a car acquired in the 1996‑97 income year or an earlier income year 20‑110 The termination value of a car disposed of in the 1996‑97 income year or an earlier income year 20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it Part 2‑5—Rules about deductibility of particular kinds of amounts Division 25—Some amounts you can deduct 25‑1 Application of Division 25 of the Income Tax Assessment Act 1997 25‑40 Application of section 25‑40 of the Income Tax Assessment Act 1997 25‑45 Application of section 25‑45 of the Income Tax Assessment Act 1997 25‑50 Application of section 25‑90 of the Income Tax Assessment Act 1997 25‑65 Local government election expenses Division 26—Some amounts you cannot deduct, or cannot deduct in full 26‑1 Application of Division 26 of the Income Tax Assessment Act 1997 26‑30 Application of section 26‑30 of the Income Tax Assessment Act 1997 Division 30—Gifts or contributions 30‑1 Application of Division 30 of the Income Tax Assessment Act 1997 30‑5 Keeping in force old declarations and instruments 30‑25 Keeping in force the old gifts registers 30‑102 Fund, authorities and institutions taken to be endorsed Division 32—Entertainment expenses 32‑1 Application of Division 32 of the Income Tax Assessment Act 1997 Division 34—Non‑compulsory uniforms 34‑1 Application of Division 34 of the Income Tax Assessment Act 1997 34‑5 Things done under former section 51AL of the Income Tax Assessment Act 1936 Division 35—Deferral of losses from non‑commercial business activities 35‑10 Deductions for certain new business investment 35‑20 Application of Commissioner's decisions Division 36—Tax losses of earlier income years 36‑100 Tax losses for the 1997‑98 and later income years 36‑105 Tax losses for 1989‑90 to 1996‑97 income years 36‑110 Tax losses for 1957‑58 to 1988‑89 income years Part 2‑10—Capital allowances: rules about deductibility of capital expenditure Division 40—Capital allowances Subdivision 40‑B—Core provisions 40‑10 Plant 40‑12 Plant acquired after 30 June 2001 40‑13 Accelerated depreciation for split or merged plant 40‑15 Recalculating effective life 40‑20 IRUs 40‑25 Software 40‑30 Spectrum licences 40‑33 Datacasting transmitter licences 40‑35 Mining unrecouped expenditure 40‑37 Post‑30 June 2001 mining expenditure 40‑38 Mining cash bidding payments 40‑40 Transport expenditure 40‑43 Post‑30 June 2001 transport expenditure 40‑44 No additional decline in certain cases 40‑45 Intellectual property 40‑47 IRUs 40‑50 Forestry roads and timber mill buildings 40‑55 Environmental impact assessment 40‑60 Pooling under Subdivision 42‑L of the former Act 40‑65 Substituted accounting periods 40‑67 Methods for working out decline in value 40‑70 References to amounts deducted and reductions in deductions 40‑72 New diminishing value method not to apply in some cases 40‑75 Mining expenditure incurred after 1 July 2001 on an asset 40‑77 Mining, quarrying or prospecting rights or information held before 1 July 2001 40‑80 Other expenditure incurred after 1 July 2001 on a depreciating asset 40‑100 Commissioner's determination of effective life 40‑105 Calculations of effective life Subdivision 40‑BA—Backing business investment 40‑120 Backing business investment—accelerated decline in value for businesses with turnover less than $500 million 40‑125 Backing business investment—when an asset of yours qualifies 40‑130 Method for working out accelerated decline in value 40‑135 Division 40 of the Income Tax Assessment Act 1997 applies to later years 40‑137 Choice to not apply this Subdivision to an asset Subdivision 40‑BB—Temporary full expensing of depreciating assets 40‑140 Definitions 40‑145 Interaction with other provisions 40‑150 When an asset of yours qualifies for full expensing 40‑155 Businesses with turnover under $5 billion 40‑157 Corporate tax entities with income under $5 billion 40‑160 Full expensing of first and second element of cost for post‑2020 budget assets 40‑165 Exclusions—entities covered by section 40‑155 or 40‑157 40‑167 Exclusions—entities covered by section 40‑157 40‑170 Full expensing of eligible second element of cost 40‑175 When is an amount included in the eligible second element 40‑180 Division 40 of the Income Tax Assessment Act 1997 applies to later years 40‑185 Balancing adjustment for assets not used or located in Australia 40‑190 Choice to not apply this Subdivision to an asset for an income year Subdivision 40‑C—Cost 40‑230 Car limit Subdivision 40‑D—Balancing adjustments 40‑285 Balancing adjustments 40‑287 Disposal of pre‑1 July 2001 mining depreciating asset to associate 40‑288 Disposal of pre‑1 July 2001 mining non‑depreciating asset to associate 40‑289 Surrendered firearms 40‑290 Reduction of deductions under former Act etc. 40‑292 Balancing adjustment—assets used for both general tax purposes and R&D activities 40‑293 Balancing adjustment—partnership assets used for both general tax purposes and R&D activities 40‑295 Later year relief 40‑340 Roll‑overs 40‑345 Balancing adjustments for depreciating assets that retain CGT indexation 40‑365 Involuntary disposals Subdivision 40‑E—Low‑value and software development pools 40‑420 Low‑value pools under Division 42 continue 40‑430 Allocating assets to low‑value pools 40‑450 Software development pools Subdivision 40‑F—Primary production depreciating assets 40‑515 Water facilities, grapevines and horticultural plants 40‑520 Special rule for water facilities you no longer hold 40‑525 Amounts deducted for water facilities Subdivision 40‑G—Capital expenditure of primary producers and other landholders 40‑645 Electricity supply and telephone lines 40‑650 Special rule for land that you no longer hold 40‑670 Farm consultants Subdivision 40‑I—Capital expenditure that is deductible over time 40‑825 Genuine prospectors 40‑832 New method not to apply in some cases Subdivision 40‑J—Ships depreciated under section 57AM of the Income Tax Assessment Act 1936 40‑840 Ships depreciated under section 57AM of the Income Tax Assessment Act 1936 Division 43—Deductions for capital works 43‑100 Application of Division 43 to quasi‑ownership rights over land 43‑105 Application of subsections 43‑50(1) and (2) to hotel buildings and apartment buildings 43‑110 Application of subsection 43‑75(3) Division 45—Disposal of leases and leased plant 45‑1 Application of Division 45 of the Income Tax Assessment Act 1997 45‑3 Application of Division 45 to disposals between February 1999 and September 1999 45‑40 Application of Division to plant formerly owned by exempt entities Part 2‑15—Non‑assessable income Division 50—Exempt entities 50‑1 Application of Division 50 of the Income Tax Assessment Act 1997 50‑50 Charities established prior to 1 July 1997 Division 51—Exempt amounts 51‑1 Application of Division 51 of the Income Tax Assessment Act 1997 Division 52—Certain pensions, benefits and allowances are exempt from income tax 52‑1 Application of Division 52 of the Income Tax Assessment Act 1997 Division 53—Various exempt payments 53‑1 Application of Division 53 of the Income Tax Assessment Act 1997 Division 54—Exemption for certain payments made under structured settlements and structured orders 54‑1 Application of Division 54 of the Income Tax Assessment Act 1997 Division 55—Payments that are not exempt from income tax 55‑1 Application of Division 55 of the Income Tax Assessment Act 1997 Division 59—Particular amounts of non‑assessable non‑exempt income Subdivision 59‑N—Native title benefits 59‑50 Indigenous holding entities Part 2‑20—Tax offsets Division 61—Generally applicable tax offsets Subdivision 61‑L—Tax offset for Medicare levy surcharge (lump sum payments in arrears) 61‑575 Application of Subdivision 61‑L of the Income Tax Assessment Act 1997 Part 2‑25—Trading stock Division 70—Trading stock 70‑1 Application of Division 70 of the Income Tax Assessment Act 1997 70‑10 Accounting for your disposal of items that stop being trading stock because of the change of definition 70‑20 Application of section 70‑20 of the Income Tax Assessment Act 1997 to trading stock bought on or after 1 July 1997 70‑55 Cost of live stock acquired by natural increase 70‑70 Valuing interests in FIFs on hand at the start of 1991‑92 70‑90 Application of sections 70‑90 and 70‑95 of the Income Tax Assessment Act 1997 to disposals of trading stock outside the ordinary course of business 70‑100 Application of section 70‑100 of the Income Tax Assessment Act 1997 to disposals of trading stock outside ordinary course of business 70‑105 Application of section 70‑105 of the Income Tax Assessment Act 1997 to deaths on or after 1 July 1997 70‑115 Application of section 70‑115 of the Income Tax Assessment Act 1997 to insurance and indemnity payments in 1997‑98 and later income years Part 2‑40—Rules affecting employees and other taxpayers receiving PAYG withholding payments Division 82—Pre‑10 May 2006 entitlements to life benefit termination payments Subdivision 82‑A—Application of Division 82‑10 Pre‑10 May 2006 entitlements—transitional termination payments Subdivision 82‑B—Transitional termination payments: general 82‑10A Recipient has reached preservation age 82‑10B Lower cap amount 82‑10C Recipient under preservation age 82‑10D Upper cap amount Subdivision 82‑C—Pre‑payment statements 82‑10E Transitional termination payments—pre‑payment statements Subdivision 82‑D—Directed termination payments made to superannuation and other entities 82‑10F Directed termination payments 82‑10G Directed termination payments not assessable income and not exempt income Subdivision 82‑E—Pre‑10 May 2006 entitlements and employment termination payments made after 1 July 2012 82‑10H Transitional termination payments may reduce ETP cap amount for payments under section 82‑10 after 1 July 2012 Division 83A—Employee share schemes Subdivision 83A‑A—Application of Division 83A of the Income Tax Assessment Act 1997 83A‑5 Application of Division 83A of the Income Tax Assessment Act 1997 Subdivision 83A‑B—Application of former provisions of the Income Tax Assessment Act 1936 83A‑10 Savings—continued operation of former provisions 83A‑15 Indeterminate rights Chapter 3—Specialist liability rules Part 3‑1—Capital gains and losses: general topics Division 102—Application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 102‑1 Application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 102‑5 Working out capital gains and capital losses 102‑15 Applying net capital losses 102‑20 Net capital gains, capital gains and capital losses for income years before 1998‑99 102‑25 Transitional capital gains tax provisions for certain Cocos (Keeling) Islands and Norfolk Island assets Division 104—CGT events Subdivision 104‑C—End of a CGT asset 104‑25 Cancellation, surrender and similar endings Subdivision 104‑D—Bringing into existence a CGT asset 104‑40 Granting an option Subdivision 104‑E—Trusts 104‑70 Capital payment before 18 December 1986 for trust interest Subdivision 104‑G—Shares 104‑135 Capital payment for shares Subdivision 104‑I—Australian residency ends 104‑165 Choices made under subsection 104‑165(2) of the Income Tax Assessment Act 1997 104‑166 Subsection 104‑165(1) still applies if you continue to be a short term Australian resident Subdivision 104‑J—CGT events relating to roll‑overs 104‑175 Company ceasing to be member of wholly‑owned group after roll‑over 104‑185 Change of status of replacement asset for a roll‑over under Division 17A of former Part IIIA of the 1936 Act or Division 123 of the 1997 Act Subdivision 104‑K—Other CGT events 104‑205 Partial realisation of intellectual property 104‑235 CGT event K7: asset used for old law R&D activities Division 108—CGT assets Subdivision 108‑A—What a CGT asset is 108‑5 CGT assets Subdivision 108‑B—Collectables 108‑15 Sets of collectables Subdivision 108‑D—Separate CGT assets 108‑75 Capital improvements to CGT assets for which a roll‑over may be available 108‑85 Improvement threshold Division 109—Acquisition of CGT assets Subdivision 109‑A—Operative rules 109‑5 General acquisition rules Division 110—Cost base and reduced cost base Subdivision 110‑A—Cost base 110‑25 Cost base of CGT asset of life insurance company or registered organisation 110‑35 Incidental costs Division 112—Modifications to cost base and reduced cost base Subdivision 112‑A—General rules 112‑20 Market value substitution rule Subdivision 112‑B—Special rules 112‑100 Effect of terminated gold mining exemptions Division 114—Indexation of cost base 114‑5 When indexation relevant Division 118—Exemptions Subdivision 118‑A—General exemptions 118‑10 Interests in collectables 118‑24A Pilot plant Subdivision 118‑B—Main residence 118‑110 Foreign residents 118‑195 Exemption—dwelling acquired from deceased estate Subdivision 118‑C—Goodwill 118‑260 Business exemption threshold Division 121—Record keeping 121‑15 Retaining records under Division 121 121‑25 Records for mergers between qualifying superannuation funds Part 3‑3—Capital gains and losses: special topics Division 124—Replacement‑asset roll‑overs Subdivision 124‑C—Statutory licences 124‑140 New statutory licence—ASGE licence etc. 124‑141 ASGE licence etc.—cost base of ineligible part 124‑142 ASGE licence etc.—cost base of aquifer access licence etc. Subdivision 124‑I—Change of incorporation 124‑510 Application of Subdivision 124‑I of the Income Tax Assessment Act 1997 Division 125—Demerger relief Subdivision 125‑B—Consequences for owners of interests 125‑75 Employee share schemes Division 126—Roll‑overs Subdivision 126‑A—Merger of qualifying superannuation funds 126‑100 Merger of qualifying superannuation funds Subdivision 126‑B—Transfer of life insurance business 126‑150 Roll‑over on transfer of life insurance business 126‑160 Effects of roll‑over 126‑165 References to Subdivision 126‑B of the Income Tax Assessment Act 1997 Division 128—Effect of death 128‑15 Effect on the legal personal representative or beneficiary Division 130—Investments Subdivision 130‑A—Bonus shares and units 130‑20 Issue of bonus shares or units Subdivision 130‑B—Rights 130‑40 Exercise of rights Subdivision 130‑C—Convertible notes 130‑60 Shares or units acquired by converting a convertible note Division 134—Options 134‑1 Exercise of options Division 136—Foreign residents Subdivision 136‑A—Making a capital gain or loss 136‑25 When an asset is taxable Australian property Division 137—Granny flat arrangements Subdivision 137‑A—Granny flat arrangements Operative provisions 137‑10 Applicable CGT events Division 140—Share value shifting Subdivision 140‑A—When is there share value shifting? 140‑7 Pre‑1994 share value shifts irrelevant 140‑15 Off‑market buy backs Division 149—When an asset stops being a pre‑CGT asset 149‑5 Assets that stopped being pre‑CGT assets under old law Division 152—Small business relief 152‑5 Small business roll‑over chosen but no capital gain returned 152‑10 Small business roll‑over not chosen and time remains to acquire a replacement asset 152‑15 Amendment of assessments Part 3‑5—Corporate taxpayers and corporate distributions Division 165—Income tax consequences of changing ownership or control of a company Subdivision 165‑CA—Applying net capital losses of earlier income years 165‑95 Application of Subdivision 165‑CA of the Income Tax Assessment Act 1997 Subdivision 165‑CB—Working out the net capital gain and the net capital loss for the income year of the change 165‑105 Application of Subdivision 165‑CB of the Income Tax Assessment Act 1997 Subdivision 165‑CC—Change of ownership or control of company that has an unrealised net loss 165‑115E Choice to use global method to work out unrealised net loss Subdivision 165‑CD—Reductions after alterations in ownership or control of loss company 165‑115U Choice to use global method to work out adjusted unrealised loss 165‑115ZC..............When certain notices to be given 165‑115ZDAdjustment (or further adjustment) for interest realised at a loss after global method has been used Subdivision 165‑C—Deducting bad debts 165‑135 Application of Subdivision 165‑C of the Income Tax Assessment Act 1997 Division 166—Income tax consequences of changing ownership or control of a listed public company Subdivision 166‑C—Deducting bad debts 166‑40 Application of Subdivision 166‑C of the Income Tax Assessment Act 1997 Division 167—Companies whose shares carry unequal rights to dividends, capital distributions or voting power 167‑1 Application of provisions Division 170—Treatment of company groups for income tax purposes Subdivision 170‑A—Transfer of tax losses within certain wholly‑owned groups of companies 170‑45 Special rules affecting utilisation of losses in a bundle do not affect the amount of a tax loss that can be transferred 170‑55 Ordering rule for losses previously transferred under Subdivision 707‑A of the Income Tax Assessment Act 1997 Subdivision 170‑B—Transfer of net capital losses within certain wholly‑owned groups of companies 170‑101 Application of Subdivision 170‑B of the Income Tax Assessment Act 1997 170‑145 Special rules affecting utilisation of losses in a bundle do not affect the amount of a net capital loss that can be transferred 170‑155 Ordering rule for losses previously transferred under Subdivision 707‑A of the Income Tax Assessment Act 1997 Subdivision 170‑C—Provisions applying to both transfers of tax losses and transfers of net capital losses within wholly‑owned groups of companies 170‑220 Direct and indirect interests in the loss company 170‑225 Direct and indirect interests in the gain company Subdivision 170‑D—Transfer of life insurance business 170‑300 Transfer of life insurance business Division 175—Use of a company's losses, deductions or bad debts to avoid income tax Subdivision 175‑CA—Tax benefits from unused net capital losses of earlier income years 175‑40 Application of Subdivision 175‑CA of the Income Tax Assessment Act 1997 Subdivision 175‑CB—Tax benefits from unused capital losses of the current year 175‑55 Application of Subdivision 175‑CB of the Income Tax Assessment Act 1997 Subdivision 175‑C—Tax benefits from unused bad debt deductions 175‑78 Application of Subdivision 175‑C of the Income Tax Assessment Act 1997 Division 197—Tainted share capital accounts Subdivision 197‑A—Definitions 197‑1 Definitions Subdivision 197‑B—General application provision 197‑5 Application of new Division 197 Subdivision 197‑C—Special provisions about companies whose share capital accounts were tainted when old Division 7B was closed off 197‑10 Subdivision applies to companies whose share capital accounts were tainted when old Division 7B was closed off 197‑15 Account taken to have ceased to be tainted when old Division 7B was closed off 197‑20 After introduction day, account taken to have become tainted under new Division 197 to extent of previous tainting 197‑25 Special provisions if company chooses to untaint after introduction day Part 3‑6—The imputation system Division 201—Object and application of Part 3‑6 201‑1 Estimated debits Division 203—Benchmark rule 203‑1 Franking periods straddling 1 July 2002 Division 205—Franking accounts 205‑1 Order of events provision 205‑5 Washing estimated debits out of the franking account before conversion 205‑10 Converting the franking account balance to a tax paid basis—companies whose 2001‑02 franking year ends on 30 June 2002 205‑15 Converting the franking account balance to a tax paid basis—companies whose 2001‑02 franking year ends before 30 June 2002 205‑20 A late balancing company may elect to have its FDT liability determined on 30 June 205‑25 Franking deficit tax 205‑30 Deferring franking deficit 205‑35 No franking deficit tax if franking account in deficit at the close of the 2001‑02 income year of a late balancing entity 205‑70 Tax offset arising from franking deficit tax liabilities 205‑71 Modification of franking deficit tax offset rules 205‑75 Working out the tax offset for the first income year 205‑80 Application of Subdivision C of Division 5 of former Part IIIAA of the Income Tax Assessment Act 1936 Division 208—Exempting entities and former exempting entities 208‑111 Converting former exempting company's exempting account balance on 30 June 2002 Division 210—Venture capital franking 210‑1 Order of events provision 210‑5 Washing estimated venture capital debits out of the old sub‑account before conversion 210‑10 Converting the venture capital sub‑account balance to a tax paid basis—PDFs whose 2001‑02 franking year ends on 30 June 2002 210‑15 Converting the venture capital sub‑account balance to a tax paid basis—PDFs whose 2001‑02 franking year ends before 30 June 2002 Division 214—Administering the imputation system 214‑1 Application 214‑5 Entity must give a franking return 214‑10 Notice to a specific corporate tax entity 214‑15 Effect of a refund on franking returns 214‑20 Franking returns for the income year 214‑25 Commissioner may make a franking assessment 214‑30 Commissioner taken to have made a franking assessment on first return 214‑35 Amendments within 3 years of the original assessment 214‑40 Amended assessments are treated as franking assessments 214‑45 Further return as a result of a refund affecting a franking deficit tax liability 214‑50 Later amendments—on request 214‑55 Later amendments—failure to make proper disclosure 214‑60 Later amendments—fraud or evasion 214‑65 Further amendment of an amended particular 214‑70 Other later amendments 214‑75 Amendment on review etc. 214‑80 Notice of amendments 214‑85 Validity of assessment 214‑90 Objections 214‑100 Due date for payment of franking tax 214‑105 General interest charge 214‑110 Refunds of amounts overpaid 214‑120 Record keeping 214‑125 Power of Commissioner to obtain information 214‑135 Interpretation Division 219—Imputation for life insurance companies 219‑40 Reversing and replacing (on tax paid basis) certain franking credits that arose before 1 July 2002 219‑45 Reversing (on tax paid basis) certain franking debits that arose before 1 July 2002 Division 220—Imputation for NZ resident companies and related companies 220‑1 Application to things happening on or after 1 April 2003 220‑5 Residency requirement for income year including 1 April 2003 220‑10 NZ franking company cannot frank before 1 October 2003 220‑35 Extended time to make NZ franking choice 220‑501 Franking and exempting accounts of new former exempting entities Part 3‑10—Financial transactions Division 235—Particular financial transactions Subdivision 235‑I—Instalment trusts 235‑810 Application of Subdivision 235‑I of the Income Tax Assessment Act 1997 Division 242—Leases of luxury cars 242‑10 Application 242‑20 Balancing adjustments Division 245—Forgiveness of commercial debts Subdivision 245‑A—Application of Division 245 of the Income Tax Assessment Act 1997 245‑5 Application and saving 245‑10 Pre‑28 June 1996 arrangements etc. Division 247—Capital protected borrowings Subdivision 247‑A—Interim apportionment methodology 247‑5 Interim apportionment methodology 247‑10 Products listed on the Australian Stock Exchange that have explicit put options 247‑15 Other capital protected products 247‑20 The indicator method 247‑25 The percentage method Subdivision 247‑B—Other transitional provisions 247‑75 Post‑July 2007 capital protected borrowings 247‑80 Capital protected borrowings in existence on 1 July 2013 247‑85 Extensions and other changes Division 253—Financial claims scheme for account‑holders with insolvent ADIs Subdivision 253‑A—Tax treatment of entitlements under financial claims scheme 253‑5 Application of section 253‑5 of the Income Tax Assessment Act 1997 253‑10 Application of sections 253‑10 and 253‑15 of the Income Tax Assessment Act 1997 Part 3‑25—Particular kinds of trusts Division 275—Australian managed investment trusts Subdivision 275‑A—Choice for capital treatment of MIT gains and losses 275‑10 Consequences of making choice—Commissioner cannot make certain amendments to previous assessments Subdivision 275‑L—Modification for non‑arm's length income 275‑605 Trustee taxed on amount of non‑arm's length income of managed investment trust—not applicable for pre‑introduction scheme where amount derived before start of 2018‑19 income year Division 276—Attribution managed investment trusts Subdivision 276‑A—Application 276‑5 Application of Division 276 Subdivision 276‑B—Starting income year 276‑25 Starting income year Subdivision 276‑T—Becoming an AMIT: unders and overs 276‑700 Application of Subdivision to MIT that becomes AMIT 276‑705 Accounting for unders and overs for base years before becoming an AMIT Subdivision 276‑U—Becoming an AMIT: CGT treatment of payment by trustee of AMIT 276‑750 Payment by trustee on or after 1 July 2011—certain CGT provisions etc. apply for the purposes of working out non‑assessable part for first income year of AMIT 276‑755 Payment by trustee before 1 July 2011—limit on amendment of assessment Part 3‑30—Superannuation Division 290—Contributions 290‑10 Directed termination payments not deductible etc. 290‑15 Early balancers—deduction limits from end of 2006‑2007 income year to 1 July 2007 Division 291—Excess concessional contributions Subdivision 291‑A—Application of Division 291 of the Income Tax Assessment Act 1997 291‑10 Application of Division 291 of the Income Tax Assessment Act 1997 Subdivision 291‑C—Modifications for defined benefit interests 291‑170 Transitional rules for notional taxed contributions Division 292—Excess non‑concessional contributions tax 292‑80 Application of excess non‑concessional contributions tax from 10 May 2006 to 1 July 2007 292‑80A Transitional release authority 292‑80B Giving a transitional release authority to a superannuation provider 292‑80C Superannuation provider given transitional release authority must pay amount 292‑85 Non‑concessional contributions cap for a financial year 292‑90 Non‑concessional contributions for a financial year Division 293—Sustaining the superannuation contribution concession Subdivision 293‑A—Application of Division 293 tax rules 293‑10 Application of Division 293 of the Income Tax Assessment Act 1997 Division 294—Transfer balance cap Subdivision 294‑A—Application of Division 294 of the Income Tax Assessment Act 1997 294‑10 Application of Division 294 of the Income Tax Assessment Act 1997 294‑30 Minor excess transfer balances disregarded if remedied in first 6 months 294‑55 Repayment of limited recourse borrowing arrangements 294‑80 Structured settlement contributions made before 1 July 2017—debit increased to match credits Subdivision 294‑B—CGT relief 294‑100 Object 294‑105 Interpretation 294‑110 Segregated current pension assets 294‑115 Superannuation funds using the proportionate method—deemed sale and purchase of CGT asset 294‑120 Superannuation funds using the proportionate method—disregard initial capital gain but recognise deferred notional gain 294‑125 Pooled superannuation trust using proportionate or alternative exemption method—deemed sale and purchase of CGT asset 294‑130 Pooled superannuation trusts using proportionate or alternative exemption method—disregard initial capital gain but recognise deferred notional gain Division 295—Taxation of superannuation entities Subdivision 295‑B—Modifications of the Income Tax Assessment Act 1997 for 30 June 1988 assets 295‑75 Application of Subdivision 295‑80 Meaning of 30 June 1988 asset 295‑85 Cost base of 30 June 1988 asset 295‑90 Market value of stock exchange listed assets 295‑95 Adjustment of cost base as at 30 June 1988—return of capital 295‑100 Exercise of rights Subdivision 295‑C—Notices relating to contributions 295‑190 Deductions for personal contributions Subdivision 295‑F—Exempt income 295‑390 Fixed interest complying ADFs—exemption of income attributable to certain 25 May 1988 deposits Subdivision 295‑G—Deductions 295‑465 Complying funds—deductions for insurance premiums Subdivision 295‑I—No‑TFN contributions income 295‑610 No‑TFN contributions income Division 301—Superannuation member benefits paid from complying plans etc. 301‑5 Extended application to certain foreign superannuation funds 301‑85 Extended meaning of disability superannuation benefit for superannuation income stream 301‑90 Application of Subdivision 301‑F of the Income Tax Assessment Act 1997 301‑95 Amendment of assessments to give effect to Subdivision 301‑F of the Income Tax Assessment Act 1997 etc. 301‑100 Amendment of assessments—transitional rule for permanent incapacity benefits, etc. 301‑105 Transitional rules for Schedule 9 to the Treasury Laws Amendment (2022 Measures No. 4) Act 2023 Division 302—Superannuation death benefits paid from complying plans etc. 302‑5 Extended application to certain foreign superannuation funds 302‑195 Extended meaning of death benefits dependant for superannuation income stream 302‑195A Meaning of death benefits dependant for 2008‑2009 income year Division 303—Superannuation benefits paid in special circumstances 303‑10 Superannuation lump sum member benefit paid to member having a terminal medical condition 303‑15 Superannuation lump sum member benefit paid to member on compassionate ground relating to the coronavirus Division 304—Superannuation benefits in breach of legislative requirements etc. 304‑15 Excess payments from release authorities Division 305—Superannuation benefits paid from non‑complying superannuation plans Subdivision 305‑B—Superannuation benefits from foreign superannuation funds 305‑80 Lump sums paid into complying superannuation plans post‑FIF abolition Division 306—Roll‑overs etc. 306‑10 Roll‑over superannuation benefit—directed termination payment Division 307—Key concepts relating to superannuation benefits 307‑125 Treatment of tax free component of existing pension payments etc. 307‑127 Extension—income stream replacing an earlier one because of an involuntary roll‑over 307‑230 Total superannuation balance—modification for transfer balance just before 1 July 2017 307‑231 Total superannuation balance—limited recourse borrowing arrangements 307‑290 Taxed and untaxed elements of death benefit superannuation lump sums 307‑345 Low rate component—Effect of rebate under the Income Tax Assessment Act 1936 Part 3‑32—Co‑operatives and mutual entities Division 316—Demutualisation of friendly society health or life insurers Subdivision 316‑A—Application 316‑1 Application of Division 316 of the Income Tax Assessment Act 1997 Part 3‑35—Insurance business Division 320—Life insurance companies Operative provisions Subdivision 320‑A—Preliminary 320‑5 Life insurance companies that are friendly societies Subdivision 320‑C—Deductions and capital losses 320‑85 Deduction for increase in value of liabilities under risk components of life insurance policies Subdivision 320‑D—Taxable income and tax loss of life insurance companies 320‑100 Savings—tax losses of previous income years Subdivision 320‑F—Virtual PST 320‑170 Transfer of part of an asset to a virtual PST 320‑175 Transfers of assets to virtual PST 320‑180 Deferred annuities purchased before 1 July 2007 Subdivision 320‑H—Segregation of assets for the purpose of discharging exempt life insurance policies 320‑225 Transfer of part of an asset to segregated exempt assets 320‑230 Transfers of assets to segregated exempt assets Division 322—Assistance for policyholders with insolvent general insurers Subdivision 322‑B—Tax treatment of entitlements under financial claims scheme 322‑25 Application of section 322‑25 of the Income Tax Assessment Act 1997 322‑30 Application of section 322‑30 of the Income Tax Assessment Act 1997 Part 3‑45—Rules for particular industries and occupations Division 328—Small business entities 328‑1 Definitions 328‑110 Working out whether you are a small business entity for the 2007‑08 or 2008‑09 income year—turnover for earlier income years 328‑111 Access to certain small business concessions for former STS taxpayers that are winding up a business 328‑112 Working out whether you are a small business entity for certain small business concessions—entities connected with you 328‑115 When you stop using the STS accounting method 328‑120 Continuing to use the STS accounting method 328‑125 Meaning of STS accounting method 328‑175 Choices made in relation to depreciating assets used in primary production business 328‑180 Increased access to accelerated depreciation from 12 May 2015 to 30 June 2024 328‑181 Full expensing—2020 budget time to 30 June 2023 328‑182 Backing business investment 328‑185 Depreciating assets allocated to STS pools 328‑195 Opening pool balances for 2007‑08 income year 328‑200 General small business pool for the 2012‑13 income year 328‑440 Taxpayers who left the STS on or after 1 July 2005 328‑445 Bonus deduction for upskilling employees of small business entities etc. 328‑450 Expenditure eligible for the bonus deduction for upskilling employees of small business entities etc. 328‑455 Technology investment boost deduction 328‑460 What expenditure qualifies for the technology investment boost 328‑465 Energy incentive 328‑470 What expenditure qualifies for the energy incentive Division 355—Research and Development Subdivision 355‑D—Registration for activities before 2011‑12 income year 355‑200 Registration for activities before 2011‑12 income year Subdivision 355‑E—Balancing adjustments for decline in value deductions for assets used in R&D activities 355‑320 Balancing adjustment—assets only used for R&D activities 355‑325 Balancing adjustment—R&D partnership assets only used for R&D activities 355‑340 Balancing adjustment—tax exempt entities that become taxable Subdivision 355‑F—Integrity rules 355‑415 Expenditure reduced to reflect group mark‑ups Subdivision 355‑K—Modified application of the old R&D law 355‑550 Prepayments of R&D expenditure extending into the 2011‑12 income year Subdivision 355‑M—Undeducted core technology expenditure 355‑600 Scope 355‑605 Core technology that is a depreciating asset 355‑610 Core technology that is not a depreciating asset Division 375—Australian films Subdivision 375‑G—Film losses 375‑100 Film component of tax loss for 1997‑98 or later income year 375‑105 Film component of tax loss for 1989‑90 to 1996‑97 income years 375‑110 Film loss for 1989‑90 or later income year Division 392—Long‑term averaging of primary producers' tax liability 392‑1 Application of Division 392 of the Income Tax Assessment Act 1997 392‑25 Transitional provision—election under section 158A of the Income Tax Assessment Act 1936 Division 393—Farm management deposits Subdivision 393‑A—Tax consequences of farm management deposits 393‑1 Application of Division 393 of the Income Tax Assessment Act 1997 393‑5 Unrecouped FMD deduction 393‑10 Unrecouped FMD deduction for deposits made as a result of section 25B of the Loan (Income Equalization Deposits) Act 1976 393‑27 Trustee may choose that a beneficiary is a chosen beneficiary of the trust 393‑30 Unclaimed moneys Subdivision 393‑B—Meaning of farm management deposit and owner 393‑40 The day the deposit was made for deposits made as a result of section 25B of the Loan (Income Equalization Deposits) Act 1976 Division 410—Copyright collecting societies 410‑1 Application of section 51‑43 of the Income Tax Assessment Act 1997 Division 415—Designated infrastructure projects Subdivision 415‑B—Application of Subdivision 415‑B of the Income Tax Assessment Act 1997 415‑10 Application of Subdivision 415‑B of the Income Tax Assessment Act 1997 Part 3‑50—Climate change Division 420—Registered emissions units Subdivision 420‑A—General application provision 420‑1 Application of Division 420 of the Income Tax Assessment Act 1997 Part 3‑80—Roll‑overs applying to assets generally Division 615—Roll‑overs for business restructures Subdivision 615‑A—Modifications for roll‑overs between the 2011 and 2012 Budget times 615‑5 Roll‑overs between the 2011 and 2012 Budget times 615‑10 Modifications—when additional consequences can apply 615‑15 Modifications—trading stock 615‑20 Modifications—revenue assets Division 620—Assets of wound‑up corporation passing to corporation with not significantly different ownership Subdivision 620‑A—Corporations covered by Subdivision 124‑I 620‑10 Application of Subdivision 620‑A of the Income Tax Assessment Act 1997 Part 3‑90—Consolidated groups Division 700—Application of Part 3‑90 of Income Tax Assessment Act 1997 700‑1 Application of Part 3‑90 of Income Tax Assessment Act 1997 Division 701—Modified application of provisions of Income Tax Assessment Act 1997 for certain consolidated groups formed in 2002‑3 and 2003‑4 financial years Subdivision 701‑A—Preliminary 701‑1 Transitional group and transitional entity 701‑5 Chosen transitional entity 701‑7 Working out the cost base or reduced cost base of a pre‑CGT asset after certain roll‑overs 701‑10 Interpretation Subdivision 701‑B—Modified application of provisions 701‑15 Tax cost and trading stock value not set for assets of chosen transitional entities 701‑20 Working out allocable cost amount on formation for subsidiary members other than chosen transitional entities 701‑25 No operation of value shifting and loss transfer provisions to membership interests in chosen transitional entities 701‑32 No adjustment of amount of liabilities required in working out allocable cost amount 701‑35 Act, transaction or event giving rise to CGT event for pre‑formation roll‑over after 16 May 2002 to be disregarded if cost base etc. would be different 701‑40 When entity leaves transitional group, head company may choose, for purposes of transitional group's allocable cost amount, to increase terminating values of over‑depreciated assets 701‑45 When entity leaves transitional group, head company may choose, for purposes of transitional group's allocable cost amount, to use formation time market values, instead of terminating values, for certain pre‑CGT assets 701‑50 Increased allocable cost amount for leaving entity if it takes privatised asset brought into group by chosen transitional entity Division 701A—Modified application of provisions of Income Tax Assessment Act 1997 for entities with continuing majority ownership from 27 June 2002 until joining a consolidated group 701A‑1 Continuing majority‑owned entity, designated group etc. 701A‑5 Modified application of Part 3‑90 of Income Tax Assessment Act 1997 to trading stock of continuing majority‑owned entity 701A‑7 Modified application of Part 3‑90 of Income Tax Assessment Act 1997 to registered emissions units of continuing majority‑owned entity 701A‑10 Modified application of Part 3‑90 of Income Tax Assessment Act 1997 to certain internally generated assets of continuing majority‑owned entity Division 701B—Modified application of provisions of Income Tax Assessment Act 1997 relating to CGT event L1 701B‑1 Modified application of CGT Consolidation provisions to allow immediate availability of capital loss for CGT event L1 Division 701C—Modified application etc. of provisions of Income Tax Assessment Act 1997: transitional foreign‑held membership structures Subdivision 701C‑A—Overview 701C‑1 Overview Subdivision 701C‑B—Membership rules allowing foreign holding 701C‑10 Additional membership rules where entities are interposed between the head company and a subsidiary member—case where an interposed entity is a foreign resident and the subsidiary member is a company 701C‑15 Additional membership rules where entities are interposed between the head company and a subsidiary member—case where an interposed entity is a foreign resident and the subsidiary member is a trust or partnership 701C‑20 Transitional foreign‑held subsidiaries and transitional foreign‑held indirect subsidiaries Subdivision 701C‑C—Modifications of tax cost setting rules Application and object 701C‑25 Application and object of this Subdivision Basic modification 701C‑30 Transitional foreign‑held subsidiary to be treated as part of head company Other modifications 701C‑35 Trading stock value not set for assets of transitional foreign‑held subsidiaries 701C‑40 Cost setting rules for exit cases—modification of core rules 701C‑50 Cost setting rules for exit cases—reference to modification of core rule Division 701D—Transitional foreign loss makers Subdivision 701D‑A—Object of this Division 701D‑1 Object of this Division Subdivision 701D‑B—Rules allowing transitional foreign loss makers to remain outside consolidated group 701D‑10 Transitional foreign loss maker not member of group if certain conditions satisfied 701D‑15 Choice to apply transitional rules to entity Division 702—Modified application of this Act to assets that an entity brings into a consolidated group 702‑1 Modified application of section 40‑77 of this Act to assets that an entity brings into a consolidated group 702‑4 Extended operation of subsection 40‑285(3) 702‑5 Modified application of subsection 40‑285(6) of this Act after entity brings assets into consolidated group Division 703—Consolidated groups and their members 703‑30 Debt interests that are not membership interests 703‑35 Employee share schemes Division 705—Tax cost setting amount for assets where entities become members of consolidated groups Subdivision 705‑E—Expenditure relating to exploration, mining or quarrying 705‑300 Application and object of this Subdivision 705‑305 Rules affecting depreciating assets 705‑310 Adjustable value of head company's notional assets Division 707—Losses for head companies when entities become members etc. Subdivision 707‑A—Transfer of losses to head company 707‑145 Certain choices to cancel the transfer of a loss may be revoked Subdivision 707‑C—Amount of transferred losses that can be utilised 707‑325 Increasing the available fraction for a bundle of losses by increasing the real loss‑maker's modified market value 707‑326 Events involving only value donor and real loss‑maker not covered by rule against inflation of modified market value 707‑327 Choosing available fraction to apply to value donor's loss 707‑328 Income year and conditions for possible transfer under Division 170 of the Income Tax Assessment Act 1997 707‑328A Some events involving only group members not covered by rule against inflation of modified market value 707‑329 Modified market value at a time before 8 December 2004 707‑350 Alternative loss utilisation regime to Subdivision 707‑C of the Income Tax Assessment Act 1997 707‑355 Ignore certain losses in working out when a choice can be made under this Subdivision Subdivision 707‑D—Special rules about losses 707‑405 Special rules about losses referable to part of income year Division 709—Other rules applying when entities become subsidiary members etc. Subdivision 709‑D—Deducting bad debts 709‑200 Application of Subdivision 709‑D of the Income Tax Assessment Act 1997 Division 712—Certain rules for where entities cease to be subsidiary members of consolidated groups Subdivision 712‑E—Expenditure relating to exploration, mining or quarrying 712‑305 Reducing adjustable value of head company's notional asset Division 713—Rules for particular kinds of entities Subdivision 713‑L—Transitional relief for certain transactions relating to life insurance companies 713‑500 Object of Subdivision 713‑505 When this Subdivision applies (first case) 713‑510 When this Subdivision applies (second case) 713‑515 Entities must choose the relief 713‑520 Conditions 713‑525 Time of transfer 713‑530 What the relief is 713‑535 Subsequent consequences 713‑540 Requirement to notify happening of new event 713‑545 Discount capital gain in certain cases Subdivision 713‑M—General insurance companies 713‑700 Application Division 715—Interactions between the consolidation rules and other areas of the income tax law Subdivision 715‑F—Interactions with Division 230 (financial arrangements) 715‑380 Exit history rule not to affect certain matters related to Division 230 financial arrangements Subdivision 715‑J—Entry history rule and choices 715‑658 Application 715‑659 Extension of time for making choice if joining time was before commencement Subdivision 715‑K—Exit history rule and choices 715‑698 Application 715‑699 Extension of time for making choice if leaving time was before commencement Division 716—Miscellaneous special rules Subdivision 716‑G—Software development pools 716‑340 Expenditure incurred before 1 July 2001 and allocated to a software pool Division 719—MEC rules Subdivision 719‑A—Modified application of Part 3‑90 to MEC groups 719‑2 Modified application of Part 3‑90 to MEC groups Subdivision 719‑B—MEC groups and their members 719‑5 Debt interests that are not membership interests 719‑10 Effect of Division 701C 719‑15 Modified effect of subsection 701D‑10(2) 719‑30 Employee share schemes Subdivision 719‑C—Cost setting 719‑160 Transitional cost setting rules on joining have effect with modifications 719‑161 Modified effect of section 701‑1 719‑163 Modified effect of section 701‑35 719‑165 Modified effect of paragraph 701‑45(1)(b) Subdivision 719‑F—Losses 719‑305 Available fraction for bundle of losses not affected by concessional rules 719‑310 Certain choices may be revoked Subdivision 719‑I—Bad debts 719‑450 Application of Subdivision 719‑I of the Income Tax Assessment Act 1997 Division 721—Liability for payment of tax where head company fails to pay on time Subdivision 721‑A—Application of Division 721‑25 References in tax sharing agreements to former table item 25 Part 3‑95—Value shifting Division 723—Direct value shifting by creating right over non‑depreciating asset 723‑1 Application of Division 723 Division 725—Direct value shifting affecting interests in companies and trusts 725‑1 Application of Division 725 Division 727—Indirect value shifting affecting interests in companies and trusts, and arising from non‑arm's length dealings 727‑1 Application of Division 727 727‑230 Transitional exclusion for certain indirect value shifts relating mainly to services 727‑470 Affected interests do not include equity or loan interests owned by entity that is eligible to be an STS taxpayer Chapter 4—International aspects of income tax Part 4‑5—General Division 815—Cross‑border transfer pricing Subdivision 815‑A—Cross‑border transfer pricing 815‑1 Application of Subdivision 815‑A of the Income Tax Assessment Act 1997 815‑5 Cross‑border transfer pricing guidance 815‑10 Scheme penalty applies in pre‑commencement period as if only the old law applied 815‑15 Application of Subdivisions 815‑B, 815‑C and 815‑D of the Income Tax Assessment Act 1997 Division 820—Application of the thin capitalisation rules 820‑10 Application of Division 820 of the Income Tax Assessment Act 1997 820‑12 Application of Division 974 of the Income Tax Assessment Act 1997 for the purposes of Division 820 of that Act 820‑45 Transitional provision—accounting standards and prudential standards Division 830—Application of the foreign hybrid rules 830‑1 Standard application 830‑15 Modified version of income tax law to apply for certain past income years 830‑20 Modifications of income tax law Division 832—Hybrid mismatch rules Subdivision 832‑A—Application of Division 832 of the Income Tax Assessment Act 1997 832‑10 Application of Division 832 of the Income Tax Assessment Act 1997 (other than imported hybrid mismatch rule) 832‑15 Application of imported hybrid mismatch rule Division 840—Withholding taxes Subdivision 840‑M—Managed investment trust amounts 840‑805 Managed investment trust amounts 840‑810 Payment of tax under section 840‑805 Subdivision 840‑S—Labour mobility program withholding tax 840‑905 Application of Subdivision 840‑S of the Income Tax Assessment Act 1997 Division 842—Exempt Australian source income and gains of foreign residents Subdivision 842‑I—Investment manager regime 842‑207 Application of replacement version of Subdivision 842‑I 842‑208 Modified meaning of IMR foreign fund for the purposes of earlier income years 842‑209 Residence of corporate limited partnerships 842‑210 Treatment of IMR foreign fund that is a corporate tax entity 842‑215 Treatment of foreign resident beneficiary that is not a trust or partnership 842‑220 Treatment of foreign resident partner that is not a trust or partnership 842‑225 Treatment of trustee of an IMR foreign fund 842‑230 Pre‑2012 IMR deduction 842‑235 Pre‑2012 IMR capital loss 842‑240 Pre‑2012 non‑IMR net income, pre‑2012 non‑IMR Division 6E net income and pre‑2012 non‑IMR net capital gain 842‑245 Pre‑2012 non‑IMR partnership net income and pre‑2012 non‑IMR partnership loss Division 880—Sovereign entities and activities 880‑1 Application of Division 880 of the Income Tax Assessment Act 1997 880‑5 Certain income of sovereign entity in respect of a scheme is non‑assessable non‑exempt income if covered by a private ruling 880‑10 Certain amounts of sovereign entity in respect of a scheme are not deductible if covered by a private ruling 880‑15 Sovereign entity's capital gain from membership interest etc.—gain disregarded 880‑20 Sovereign entity's capital loss from membership interest etc.—loss disregarded 880‑25 Asset of sovereign entity—deemed sale and purchase Chapter 5—Administration Part 5‑35—Miscellaneous Division 909—Regulations 909‑1 Regulations Chapter 6—The Dictionary Part 6‑1—Concepts and topics Division 960—General Subdivision 960‑B—Utilisation of tax attributes 960‑20 Utilisation—corporate loss carry back Subdivision 960‑E—Entities 960‑100 Effect of this Subdivision 960‑105 Entities, and members of entities, benefiting from the application of this Subdivision 960‑110 No taxation consequences to result from changes to managed investment scheme 960‑115 Certain entities treated as agents Subdivision 960‑M—Indexation 960‑262 Application of Subdivision 960‑M of the Income Tax Assessment Act 1997 960‑275 Indexation factor Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act setting out application and transitional provisions for the Income Tax Assessment Act 1997 Chapter 1—Introduction and core provisions Part 1‑1—Preliminary Division 1—Preliminary Table of sections 1‑1 Short title 1‑5 Commencement 1‑7 Administration of this Act 1‑10 Definitions and rules for interpreting this Act 1‑1 Short title This Act may be cited as the Income Tax (Transitional Provisions) Act 1997. 1‑5 Commencement This Act commences on 1 July 1997. 1‑7 Administration of this Act The Commissioner has the general administration of this Act. Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953. 1‑10 Definitions and rules for interpreting this Act (1) In this Act, an expression has the same meaning as in the Income Tax Assessment Act 1997. (2) Division 950 of the Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to this Act as if the provisions of this Act were provisions of that Act. Part 1‑3—Core Provisions Division 4—How to work out the income tax payable on your taxable income Table of sections 4‑1 Application of the Income Tax Assessment Act 1997 4‑11 Temporary budget repair levy 4‑1 Application of the Income Tax Assessment Act 1997 The Income Tax Assessment Act 1997, as originally enacted, applies to assessments for the 1997‑98 income year and later income years. Note: For the application of amendments of that Act (including new provisions inserted in it), see the Acts making the amendments. 4‑11 Temporary budget repair levy Temporary budget repair levy (1) You must pay extra income tax (temporary budget repair levy) for a financial year if: (a) you are an individual; and (b) your taxable income for the corresponding income year exceeds $180,000; and (c) the financial year is a temporary budget repair levy year. Note: This section will also affect the income tax payable by some trustees who are taxed as if certain trust income were income of individuals. See sections 98 and 99 of the Income Tax Assessment Act 1936. Amount of temporary budget repair levy (2) Your temporary budget repair levy is worked out by reference to your taxable income for the corresponding income year using the rate or rates that apply to you. Interaction with other provisions (3) For the purpose of working out your income tax for the financial year: (a) section 4‑10 of the Income Tax Assessment Act 1997 has effect as if it made you liable to pay the extra tax mentioned in subsection (1) of this section; and (b) subsection 4‑10(3) of that Act has effect as if step 4 of the method statement in that subsection were omitted and the following were substituted: Step 3A. Subtract your tax offsets from your basic income tax liability. For the list of tax offsets, see section 13‑1. Step 3B. Add the extra income tax you must pay as mentioned in subsection 4‑11(1) of the Income Tax (Transitional Provisions) Act 1997. Step 4. If an amount of your tax offset for foreign income tax under Division 770 remains after applying section 63‑10, subtract the remaining amount from the result of step 3B. The result is how much income tax you owe for the financial year. (4) To avoid doubt, temporary budget repair levy is not included in your basic income tax liability. Note: As a result, you cannot apply any tax offsets against temporary budget repair levy under Part 2‑20 of the Income Tax Assessment Act 1997 (apart from the foreign income tax offset applied under step 4 of the method statement in subsection (3)). Meaning of temporary budget repair levy year (5) Each of the following is a temporary budget repair levy year: (a) the 2014‑15 financial year; (b) the 2015‑16 financial year; (c) the 2016‑17 financial year. Division 5—How to work out when to pay your income tax Table of Subdivisions 5‑A How to work out when to pay your income tax Subdivision 5‑A—How to work out when to pay your income tax Table of sections 5‑5 Application of Division 5 of the Income Tax Assessment Act 1997 5‑7 References in tax sharing agreements to former section 204 5‑10 General interest charge liabilities under former subsection 204(3) 5‑15 Application of section 5‑15 of the Income Tax Assessment Act 1997 5‑5 Application of Division 5 of the Income Tax Assessment Act 1997 Subject to section 5‑15 of this Act, Division 5 of the Income Tax Assessment Act 1997, as originally enacted, applies in relation to income tax or shortfall interest charge you must pay for: (a) the 2010‑11 financial year; or (b) a later financial year. 5‑7 References in tax sharing agreements to former section 204 (1) A reference in an agreement to section 204 of the Income Tax Assessment Act 1936 is taken, from the commencement of this section, to be a reference to section 5‑5 of the Income Tax Assessment Act 1997, if: (a) paragraph 721‑25(1)(a) of the Income Tax Assessment Act 1997 applies to the agreement; and (b) the agreement was in force just before the commencement of this section. (2) This section applies in relation to tax to which Division 5 of the Income Tax Assessment Act 1997 applies. 5‑10 General interest charge liabilities under former subsection 204(3) (1) This section applies if, just before the commencement of this section, you were liable, under subsection 204(3) (the old provision) of the Income Tax Assessment Act 1936, to pay the general interest charge on an unpaid amount (the liability) of any tax or shortfall interest charge. (2) On that commencement, the old provision ceases to apply to the liability. (3) From that commencement, section 5‑15 (the new provision) of the Income Tax Assessment Act 1997, as originally enacted, applies to the liability as if: (a) the liability remained unpaid at that time; and (b) so much of the charge under the old provision as remained unpaid at that time had been imposed under the new provision and remained unpaid at that time. 5‑15 Application of section 5‑15 of the Income Tax Assessment Act 1997 (1) Section 5‑15 of the Income Tax Assessment Act 1997 (General interest charge payable on unpaid income tax or shortfall interest charge), as originally enacted, applies to an amount of income tax or shortfall interest charge you must pay for a financial year, if the income tax or shortfall interest charge is due to be paid on or after the commencement of that section. (2) For the purposes of subsection (1), it does not matter whether the financial year ended before, on or after the commencement of that section. Division 6—Assessable income and exempt income Table of sections 6‑2 Effect of this Division 6‑3 Assessable income for income years before 1997‑98 6‑20 Exempt income for income years before 1997‑98 6‑2 Effect of this Division This Division has effect for the purposes of the Income Tax Assessment Act 1997 and of this Act. 6‑3 Assessable income for income years before 1997‑98 For the 1996‑97 income year or an earlier income year, assessable income means all the amounts that under the Income Tax Assessment Act 1936 are included in the assessable income. 6‑20 Exempt income for income years before 1997‑98 For the 1996‑97 income year or an earlier income year, exempt income means income which is exempt from tax and includes income which is not assessable income. Division 8—Deductions Table of sections 8‑2 Effect of this Division 8‑3 Deductions for income years before 1997‑98 8‑10 No double deductions for income year before 1997‑98 and income year after 1996‑97 8‑2 Effect of this Division This Division has effect for the purposes of the Income Tax Assessment Act 1997 and of this Act. 8‑3 Deductions for income years before 1997‑98 For the 1996‑97 income year or an earlier income year, deduction means a deduction allowable under the Income Tax Assessment Act 1936. 8‑10 No double deductions for income year before 1997‑98 and income year after 1996‑97 If: (a) a provision of the Income Tax Assessment Act 1936 allows you a deduction in respect of an amount for the 1996‑97 income year or an earlier income year; and (b) a different provision of that Act, or a provision of the Income Tax Assessment Act 1997, allows you a deduction in respect of the same amount for the 1997‑98 income year or a later income year; you can deduct only under the provision that is most appropriate. Chapter 2—Liability rules of general application Part 2‑1—Assessable income Division 15—Some items of assessable income Table of sections 15‑1 General application provision 15‑10 Application of section 15‑10 of the Income Tax Assessment Act 1997 to bounties and subsidies 15‑15 Application of section 15‑15 of the Income Tax Assessment Act 1997 to profit‑making plans 15‑20 Application of section 15‑20 of the Income Tax Assessment Act 1997 to royalties 15‑30 Application of section 15‑30 of the Income Tax Assessment Act 1997 to insurance or indemnity payments 15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax 15‑1 General application provision (1) Division 15 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years. (2) However, the sections of that Act listed in the table apply in accordance with the corresponding sections of this Act. Application provisions for specific sections This section of the Income Tax Assessment Act 1997 ... Applies as described in this section of this Act ... Item 1 15‑10 15‑10 2 15‑15 15‑15 3 15‑20 15‑20 4 15‑30 15‑30 5 15‑35 15‑35 15‑10 Application of section 15‑10 of the Income Tax Assessment Act 1997 to bounties and subsidies Section 15‑10 (Bounties and subsidies) of the Income Tax Assessment Act 1997 applies to a bounty or subsidy received in the 1997‑98 income year or a later income year. 15‑15 Application of section 15‑15 of the Income Tax Assessment Act 1997 to profit‑making undertaking or plan Section 15‑15 (Profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 applies to a profit arising in the 1997‑98 income year or a later income year, even if the undertaking or plan was entered into, or began to be carried on or carried