Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 16E - Accruals assessability, etc., in respect of certain security payments  

SECTION 159GQA   ACCRUAL PERIOD  

159GQA(1)   Taxpayer's maximum term to be divided into accrual periods.  

The taxpayer's maximum term for the qualifying security is divided into accrual periods in accordance with this section.

159GQA(2)   Whole year of income.  

If a year of income is wholly taken up by any of the taxpayer's maximum term, the year of income is divided into 2 accrual periods of 6 months.

159GQA(3)   Beginning of taxpayer's maximum term.  

If the taxpayer's maximum term begins after the beginning of the year of income:

(a) if it begins less than 6 months after the beginning of the year of income - the period from the beginning of the taxpayer's maximum term until the middle of the year of income is an accrual period and the second 6 months of the year of income is an accrual period; and

(b) in any other case - the part of the year of income taken up by the taxpayer's maximum term is an accrual period.

159GQA(4)   End of taxpayer's maximum term.  

If the taxpayer's maximum term ends before the end of a year of income:

(a) if it ends no later than 6 months after the beginning of the year of income - the part of the year of income taken up by the taxpayer's maximum term is an accrual period; and

(b) in any other case - the first 6 months of the year of income is an accrual period and the period from the middle of the year of income until the end of the taxpayer's maximum term is an accrual period.

159GQA(5)   Example.  

For example, if the taxpayer's year of income is a financial year and a security with a 2 year term is issued to the taxpayer on 1 April, the accrual periods will be as follows: