INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 80AC   LIMITATIONS ON NET EXEMPT INCOME TO BE TAKEN INTO ACCOUNT IN RESPECT OF LOSS DEDUCTIONS  

80AC(1)   [Net exempt income applied against losses]  

Where, but for this section, a taxpayer's net exempt income (within the meaning of sections 79E and 80 ) of a year of income would be taken into account for the purposes of any 2 or more of the following paragraphs:

(a) paragraph 79E(3)(b) ;

(b) paragraph 79F(6)(b) ;

(c) paragraph 80(2)(b) ;

(d) paragraph 80AAA(7)(b) ;

(e) paragraph 80AA(4)(b) ;

then the net exempt income is to be so taken into account in accordance with the following principles:

(f) first, the amount is to be taken into account to the extent (if any) necessary for the purposes of paragraph 80AAA(7)(b) ;

(g) the amount, to the extent (if any) not so taken into account, is then to be taken into account to the extent (if any) necessary for the purposes of paragraph 80(2)(b) ;

and so on successively for the purposes of paragraphs 79F(6)(b) , 80AA(4)(b) and 79E(3)(b) .

80AC(2)   [Net exempt income applied against debts paid]  

Where, but for this section, a taxpayer's net exempt income (within the meaning of sections 79E and 80 ) of a year of income would be taken into account for the purposes of any 2 or more of the following paragraphs:

(a) paragraph 79E(10)(c) ;

(b) paragraph 79F(10)(c) ;

(c) paragraph 80(4B)(c) ;

(d) paragraph 80AAA(11)(c) ;

(e) paragraph 80AA(8)(c) ;

then the net exempt income is to be so taken into account in accordance with the following principles:

(f) first, the amount is to be taken into account to the extent (if any) necessary for the purposes of paragraph 80AAA(11)(c) ;

(g) the amount, to the extent (if any) not so taken into account, is then to be taken into account to the extent (if any) necessary for the purposes of paragraph 80(4B)(c) ;

and so on successively for the purposes of paragraphs 79F(10)(c) , 80AA(8)(c) and 79E(10)(c) .