Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013 (85 of 2013)

Schedule 8   Taxation of financial arrangements

Part 2   Accruals/realisation methods

Division 5   Re-estimations

Income Tax Assessment Act 1997

26   After subsection 230-190(3)

Insert:

(3A) You also re-estimate a gain or loss from a *financial arrangement under subsection (5) if:

(a) the gain or loss is spread using the method referred to in paragraph 230-135(2)(b) in accordance with section 230-140 (effective interest method); and

(b) you recalculate the effective interest rate in accordance with that method; and

(c) the terms and conditions of the arrangement provide for reset dates to occur no more than 12 months apart; and

(d) the maximum life of the arrangement (as determined under the terms and conditions of the arrangement) is more than 12 months.

(3B) You must re-estimate the gain or loss at the relevant reset date if subsection (3A) applies.