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 25-75   Rates and land taxes on premises used to produce mutual receipts  

25-75(1)    
An entity can deduct these amounts it pays for premises:

(a) rates which are annually assessed;

(b) land tax imposed under a ^* State law or ^* Territory law.

But only if it uses the premises:

(c) for the purpose of producing mutual receipts; or

(d) in carrying on a ^* business for the purpose of producing mutual receipts; or

(e) for the purpose of producing amounts to which section 59-35 applies (amounts that would be mutual receipts but for prohibition on distributions to members or issue of MCIs); or

(f) in carrying on a ^* business for the purpose of producing amounts to which section 59-35 applies.

Note:

If the entity receives an amount as recoupment of the rates or land tax, the amount may be included in its assessable income: see Subdivision 20-A

When premises used only for deductible purposes

25-75(2)    
The entity can deduct the whole of the rates or land tax if it uses the premises only in one or more of these ways:

(a) for the purpose of producing mutual receipts;

(b) in carrying on a ^* business for the purpose of producing mutual receipts;

(c) for the ^* purpose of producing assessable income.

When premises used partly for deductible purposes

25-75(3)    
If the entity uses the premises partly in one or more of the ways referred to in subsection (2) and partly in some other way, it can deduct the rates or land tax to the extent that it uses the premises in one or more of the ways referred to in that subsection.

No deduction under section 8-1

25-75(4)    
The entity cannot deduct the rates or land tax under section 8-1 (which is about general deductions).