INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 67A   EXPENSES OF DISCHARGE OF MORTGAGE  

67A(1)   [When expenses are allowable deduction]  

Where a taxpayer incurs expenditure (not including payments of principal or interest) in the year of income in connexion with the discharge of a mortgage given by him as security for the repayment of money borrowed by him or the payment by him of the whole or a part of the purchase price of property purchased by him:

(a) if the money or property was used by him wholly for the purpose of producing assessable income - the whole of the expenditure; or

(b) if the money or property was used by him only partly for that purpose - such part of the expenditure as the Commissioner determines,

shall be an allowable deduction.

67A(2)   [No application 1997/98 income year onwards]  

This section does not apply to the 1997-98 year of income or a later year of income.

Note:

Section 25-30 (Expenses of discharging a mortgage) of the Income Tax Assessment Act 1997 deals with the deductibility of expenses related to discharging mortgages.