Tax Laws Amendment (2012 Measures No. 2) Act 2012 (99 of 2012)

Schedule 3  

Part 3   Prospective rules

Income Tax Assessment Act 1997

33   Section 701-63

Repeal the section, substitute:

701-63 Right to future income and WIP amount asset

(5) A right to future income is a valuable right (including a contingent right) to receive an amount if:

(a) the valuable right forms part of a contract or agreement; and

(b) the *market value of the valuable right (taking into account all the obligations and conditions relating to the right) is greater than nil; and

(c) the valuable right is neither a *Division 230 financial arrangement nor a part of a Division 230 financial arrangement; and

(d) it is reasonable to expect that an amount attributable to the right will be included in the assessable income of any entity at a later time.

(6) WIP amount asset means an asset that is in respect of work (but not goods) that has been partially performed by a recipient mentioned in paragraph 25-95(3)(b) for a third entity but not yet completed to the stage where a recoverable debt has arisen in respect of the completion or partial completion of the work.