PART I
-
PRELIMINARY
SECTION 1
1
SHORT TITLE
This Act may be cited as the
Income Tax Assessment Act 1936.
[
CCH Note:
The
Income Tax Assessment Act
comprises the
Income Tax Assessment Act 1936
as amended. For details of amending Acts, see the List of Amending Acts in the front of the Act. Each section or subsection that has been amended is followed by a history note which lists the Act or Acts which have amended the section or subsection. In the case of substantive amendments effected in the last five years, full details of the amendments are given.
"
This Act
"
also includes the
Income Tax Assessment Act 1997
, and Pt
IVC
of the
Taxation Administration Act 1953
-
see s 6(1) definition.]
History
Archived:
S 2 to 4 repealed as inoperative by
No 101 of 2006
, s 3 and Sch 1 item 5, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
. For former wording see the
CCH Australian Income Tax Legislation archive
.
FORMER SECTION 5
5
PARTS
(Repealed by No 164 of 1973)
SECTION 6
INTERPRETATION
6(1AA)
So far as a provision of the
Income Tax Assessment Act 1936
gives an expression a particular meaning, the provision does
not
also have effect for the purposes of the
Income Tax Assessment Act 1997
(the
1997 Act
), or for the purposes of Schedule
1
to the
Taxation Administration Act 1953
, except as provided in the 1997 Act or in that Schedule.
History
S 6(1AA) amended by No 178 of 1999 and inserted by No 39 of 1997.
6(1)
In this Act, unless the contrary intention appears:
100% subsidiary
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
100% subsidiary
"
inserted by No 46 of 1998.
accrued leave transfer payment
(Repealed by No 56 of 2010)
History
Definition of
"
accrued leave transfer payment
"
repealed by No 56 of 2010, s 3 and Sch 6 item 114, effective 3 June 2010. The definition formerly read:
accrued leave transfer payment
has the meaning given by section 6G.
Definition of
"
accrued leave transfer payment
"
inserted by No 17 of 1993.
adjusted fringe benefits total
, of a taxpayer for a year of income, has the meaning given by clause
4
of Schedule
3
to the
A New Tax System (Family Assistance) Act 1999
.
History
Definition of
"
adjusted fringe benefits total
"
substituted by No 55 of 2016, s 3 and Sch 15 item 2, effective 1 January 2017. No 55 of 2016, s 3 and Sch 15 items 5(8)
-
(12) contain the following application provisions:
5 Application provisions
…
Rebate for medical expenses
(8)
The amendments apply in relation to working out whether a taxpayer is entitled to a rebate of tax, and the amount of the rebate, under section
159P
of the
Income Tax Assessment Act 1936
in respect of a year of income beginning on or after 1 January 2017.
Rebate for low income aged persons and pensioners
(9)
The amendments apply in relation to working out whether a taxpayer is entitled to a rebate of tax under section
160AAAA
of the
Income Tax Assessment Act 1936
in respect of a year of income beginning on or after 1 January 2017.
(10)
The amendments apply in relation to working out whether a trustee is entitled to a rebate of tax under section
160AAAB
of the
Income Tax Assessment Act 1936
in respect of a year of income beginning on or after 1 January 2017.
Dependant (invalid and carer) tax offset
(11)
The amendments apply in relation to working out whether an individual is entitled to a tax offset, and the amount of the offset, under section
61-10
of the
Income Tax Assessment Act 1997
for an income year beginning on or 1 January 2017.
Dependant (non-student child under 21 or student) notional tax offset
(12)
The amendments apply in relation to working out the amount of an individual
'
s notional tax offset under Subdivision
961-A
of the
Income Tax Assessment Act 1997
for an income year beginning on or 1 January 2017.
The definition formerly read:
of a taxpayer for a year of income is the amount worked out using the formula:
Taxpayer
'
s reportable
fringe benefits total |
× |
(1
−
FBT rate) |
where:
FBT rate
is the rate of tax set by the
Fringe Benefits Tax Act 1986
for the FBT year (as defined in the
Fringe Benefits Tax Assessment Act 1986
) beginning on the 1 April just before the start of the year of income.
Definition of
"
adjusted fringe benefits total
"
inserted by No 27 of 2009, s 3 and Sch 3 item 1, applicable in relation to income years starting on or after 1 July 2009.
adjusted taxable income for rebates
means adjusted taxable income (within the meaning of the
A New Tax System (Family Assistance) Act 1999
, disregarding clauses
3
and
3A
of Schedule
3
to that Act).
History
Definition of
"
adjusted taxable income for rebates
"
inserted by No 84 of 2013, s 3 and Sch 5 item 1, applicable to assessments for the 2012-13 year of income and later years of income.
AFOF
means an Australian venture capital fund of funds within the meaning of subsection
118-410(3)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
AFOF
"
inserted by No 136 of 2002.
agent
: this Act applies to some entities (within the meaning of the
Income Tax Assessment Act 1997
) that are not agents in the same way as it applies to agents: see section
960-105
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
agent
"
substituted by No 56 of 2010, s 3 and Sch 6 item 118, effective 3 June 2010. No 56 of 2010, s 3 and Sch 6 item 119 contains the following transitional provision:
119 Transitional provision relating to agents
119
A declaration in force for the purposes of paragraph (b) of the definition of
agent
in subsection
6(1)
of the
Income Tax Assessment Act 1936
immediately before the repeal of that definition continues to have effect on and after that repeal as if it were a determination under subsection
960-105(2)
of the
Income Tax Assessment Act 1997
.
The definition formerly read:
agent
includes:
(a)
every person who in Australia, for or on behalf of any person out of Australia holds or has the control, receipt or disposal of any money belonging to that person; and
(b)
every person declared by the Commissioner to be an agent or the sole agent of any person for any of the purposes of this Act.
Agriculture Secretary
(Repealed by No 110 of 2014)
History
Definition of
"
Agriculture Secretary
"
repealed by No 110 of 2014, s 3 and Sch 5 item 7(a), effective 16 October 2014. The definition formerly read:
Agriculture Secretary
has the meaning given by the
Income Tax Assessment Act 1997
.
Definition of
"
Agriculture Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 21, effective 18 September 2009.
allowable deduction
has the same meaning as
deduction
has in the
Income Tax Assessment Act 1997
.
History
Definition of
"
allowable deduction
"
substituted by No 56 of 2010, s 3 and Sch 6 item 120, effective 3 June 2010. The definition formerly read:
allowable deduction
means a deduction allowable under this Act.
AMIT
(short for
attribution managed investment trust
) has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
AMIT
"
inserted by No 53 of 2016, s 3 and Sch 6 item 1, effective 5 May 2016. For application provision, see note under s
128AF
.
amount paid-up
on a share means the amount (if any), including any premium, paid on that share.
History
Definition of
"
amount paid-up
"
inserted by No 63 of 1998.
amount unpaid
on a share means the amount (if any) unpaid on that share.
History
Definition of
"
amount unpaid
"
inserted by No 63 of 1998.
apportionable deductions
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
approved form
has the meaning given by section
388-50
in Schedule
1
to the
Taxation Administration Act 1953
.
History
Definition of
"
approved form
"
inserted by No 91 of 2000.
approved stock exchange
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
approved stock exchange
"
inserted by No 114 of 2010, s 3 and Sch 1 item 1, effective 14 July 2010.
Arts Department
(Repealed by No 110 of 2014)
History
Definition of
"
Arts Department
"
repealed by No 110 of 2014, s 3 and Sch 5 item 7(b), effective 16 October 2014. The definition formerly read:
Arts Department
has the meaning given by the
Income Tax Assessment Act 1997
.
Definition of
"
Arts Department
"
inserted by No 88 of 2009, s 3 and Sch 5 item 22, effective 18 September 2009.
Arts Minister
(Repealed by No 110 of 2014)
History
Definition of
"
Arts Minister
"
repealed by No 110 of 2014, s 3 and Sch 5 item 7(c), effective 16 October 2014. The definition formerly read:
Arts Minister
has the meaning given by the
Income Tax Assessment Act 1997
.
Definition of
"
Arts Minister
"
inserted by No 88 of 2009, s 3 and Sch 5 item 23, effective 18 September 2009.
Arts Secretary
(Repealed by No 110 of 2014)
History
Definition of
"
Arts Secretary
"
repealed by No 110 of 2014, s 3 and Sch 5 item 7(d), effective 16 October 2014. The definition formerly read:
Arts Secretary
has the meaning given by the
Income Tax Assessment Act 1997
.
Definition of
"
Arts Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 24, effective 18 September 2009.
assessable income
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
assessment
means:
(a)
the ascertainment:
(i)
of the amount of taxable income (or that there is no taxable income); and
(ii)
of the tax payable on that taxable income (or that no tax is payable); and
(iii)
of the total of a taxpayer
'
s tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or
Note 1:
A taxpayer does not have a taxable income if the taxpayer
'
s deductions equal or exceed the taxpayer
'
s assessable income: see subsection
4-15(1)
of the
Income Tax Assessment Act 1997
.
Note 2:
A taxpayer may have no tax payable on an amount of taxable income if that income is below the tax-free threshold or if the taxpayer
'
s tax offsets reduce the taxpayer
'
s basic income tax liability to nil.
(b)
(Repealed by No 53 of 2016)
(c)
for a taxpayer that is the trustee of a unit trust that is a public trading trust (within the meaning of section
102R
)
-
the ascertainment:
(i)
of the net income of the trust (within the meaning of section
102M
) (or that there is no net income); and
(ii)
of the tax payable on that net income (or that no tax is payable); and
(iii)
of the total of a taxpayer
'
s tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or
(d)
for a taxpayer that is the trustee of a trust estate (other than a trustee to which paragraph (b) or (c) applies or the trustee of a complying superannuation fund, a non-complying superannuation fund, a complying approved deposit fund, a non-complying approved deposit fund or a pooled superannuation trust)
-
the ascertainment:
(i)
of so much of the net income of the trust estate as is net income in respect of which the trustee is liable to pay tax (or that there is no net income in respect of which the trustee is so liable); and
(ii)
of the tax payable on that net income (or that no tax is payable); and
(iii)
of the total of a taxpayer
'
s tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or
(e)
the ascertainment of the amount of interest payable under section
102AAM
(about distributions from non-resident trust estates); or
(f)
(Repealed by No 15 of 2017)
(g)
(Repealed by No 4 of 2018)
(h)
the ascertainment of the amount of income tax payable on the no-TFN contributions income as defined by section
295-610
of the
Income Tax Assessment Act 1997
(or that no tax is payable); or
(i)
(Repealed by No 70 of 2015)
(j)
the ascertainment of the amount payable (or that no amount is payable) under the following:
(i)
subsection
276-105(2)
of the
Income Tax Assessment Act 1997
(AMIT trustee taxed on amounts attributed to foreign resident members);
(ii)
subsection
276-340(2)
of that Act (AMIT trustee taxed on trust component deficit of character relating to tax offset);
(iii)
subsection
276-405(2)
of that Act (AMIT trustee taxed on shortfall in determined member components of character relating to assessable income);
(iv)
subsection
276-410(2)
of that Act (AMIT trustee taxed on excess in determined member components of character relating to tax offset);
(v)
subsection
276-415(2)
of that Act (AMIT trustee taxed on amounts of determined trust component that are not reflected in member components);
(vi)
subsection
276-420(2)
of that Act (AMIT trustee taxed on amounts of under of character relating to assessable income not properly carried forward);
(vii)
subsection
276-425(2)
of that Act (AMIT trustee taxed on amounts of over of character relating to tax offset not properly carried forward); or
(k)
the ascertainment of the amount payable under subsection
177P(1)
(diverted profits tax).
History
Definition of
"
assessment
"
amended by No 4 of 2018, s 3 and Sch 6 item 4, by repealing para (g), effective 21 February 2018. For application provisions, see note under Pt III Div
16L
heading. Para (g) formerly read:
(g)
the ascertainment of an amount of tax under section 159GZZZZH; or
Definition of
"
assessment
"
amended by No 27 of 2017, s 3 and Sch 1 item 2, by inserting para (k), applicable in relation to DPT tax benefits for a year of income that starts on or after 1 July 2017 (whether or not the DPT tax benefit arises in connection with a scheme that was entered into, or was commenced to be carried out, before 1 July 2017).
Definition of
"
assessment
"
amended by No 15 of 2017, s 3 and Sch 4 item 20, by repealing para (f), effective 1 April 2017. Para (f) formerly read:
(f)
the ascertainment of an amount of additional tax under section 128TE; or
Definition of
"
assessment
"
amended by No 53 of 2016, s 3 and Sch 6 item 2, by inserting para (j), effective 5 May 2016. For application provision, see note under s
128AF
.
Definition of
"
assessment
"
amended by No 53 of 2016, s 3 and Sch 5 item 6, by repealing para (b), applicable to assessments for income years starting on or after 1 July 2016. For transitional provision, see note under Pt III Div
6B
heading. Para (b) formerly read:
(b)
for a taxpayer that is the trustee of a unit trust that is a corporate unit trust (within the meaning of section 102J)
-
the ascertainment:
(i)
of the net income of the trust (within the meaning of section 102D) (or that there is no net income); and
(ii)
of the tax payable on that net income (or that no tax is payable); and
(iii)
of the total of the taxpayer
'
s tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or
Definition of
"
assessment
"
amended by No 70 of 2015, s 3 and Sch 1 items 47 and 48, by substituting
"
payable).
"
for
"
payable); or
"
in para (h) and repealing para (i), effective 1 July 2015. Para (i) formerly read:
(i)
the ascertainment of an amount of FHSA misuse tax (within the meaning of the
Income Tax Assessment Act 1997
) (or that no tax is payable).
Definition of
"
assessment
"
amended by No 88 of 2013, s 3 and Sch 5 item 11, by substituting paras (a) to (d), applicable to assessments made on or after 1 July 2013 for the 2013-14 income year or later income years. The paras formerly read:
(a)
the ascertainment of the amount of taxable income (or that there is no taxable income) and of the tax payable on that taxable income (or that no tax is payable); or
Note 1:
A taxpayer does not have a taxable income if the taxpayer
'
s deductions equal or exceed the taxpayer
'
s assessable income: see subsection
4-15(1)
of the
Income Tax Assessment Act 1997
.
Note 2:
A taxpayer may have no tax payable on an amount of taxable income if that income is below the tax-free threshold or if the taxpayer
'
s tax offsets reduce the taxpayer
'
s basic income tax liability to nil.
(b)
for a taxpayer being the trustee of a unit trust that is a corporate unit trust within the meaning of section
102J
-
the ascertainment of the net income of the trust as defined by section
102D
(or that there is no net income) and of the tax payable on that net income (or that no tax is payable); or
(c)
for a taxpayer being the trustee of a unit trust that is a public trading trust within the meaning of section
102R
-
the ascertainment of the net income of the trust as defined by section
102M
(or that there is no net income) and of the tax payable on that net income (or that no tax is payable); or
(d)
for any other taxpayer that is the trustee of a trust estate but excluding a taxpayer that is the trustee of a complying superannuation fund, a non-complying superannuation fund, a complying approved deposit fund, a non-complying approved deposit fund or a pooled superannuation trust
-
the ascertainment of so much of the net income of the trust estate as is net income in respect of which the trustee is liable to pay tax (or that there is no net income in respect of which the trustee is so liable) and of the tax payable on that net income (or that no tax is payable); or
Definition of
"
assessment
"
amended by No 45 of 2008, s 3 and Sch 1 item 2, by inserting para (i) at the end, effective 26 June 2008.
Definition of
"
assessment
"
amended by No 15 of 2007, s 3 and Sch 1 item 22, by substituting
"
a complying superannuation fund, a non-complying superannuation fund, a complying approved deposit fund, a non-complying approved deposit fund or a pooled superannuation trust
"
for
"
a fund or unit trust referred to in paragraph (a), (b) or (c) of the definition of
eligible entity
in subsection
267(1)
"
in para (d), applicable to the 2007-2008 income year and later years.
Definition of
"
assessment
"
amended by
No 9 of 2007
, s 3 and Sch 1 item 3, by inserting para (h), applicable to the 2007-2008 income year and later years.
Definition of
"
assessment
"
substituted by No 161 of 2005; amended by No 11 of 1999; No 169 of 1995; No 5 of 1991; No 20 of 1990 and No 123 of 1984.
attribution managed investment trust
: see
AMIT
.
History
Definition of
"
attribution managed investment trust
"
inserted by No 53 of 2016, s 3 and Sch 6 item 3, effective 5 May 2016. For application provision, see note under s
128AF
.
Australia
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
Australia
"
inserted by No 2 of 2015, s 3 and Sch 4 item 9, applicable to an income year, a year of income or a tax period that commences on or after 1 July 2015.
Australian superannuation fund
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
Australian superannuation fund
"
inserted by No 15 of 2007, s 3 and Sch 1 item 23, applicable to the 2007-2008 income year and later years.
bank
or
banker
includes, but is not limited to, a body corporate that is an ADI (authorised deposit-taking institution) for the purposes of the
Banking Act 1959
.
History
Definition of
"
bank
"
or
"
banker
"
inserted by No 48 of 1998.
base interest rate
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
base interest rate
"
inserted by
No 101 of 2006
, s 3 and Sch 2 item 120, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
basic income tax liability
has the meaning given by section
4-10
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
basic income tax liability
"
inserted by No 43 of 2011, s 3 and Sch 2 item 1, applicable to assessments for the 2011-12 income year and later income years.
Board of Referees
(Repealed by No 216 of 1973)
business
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
capital gain
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
capital gain
"
substituted by No 46 of 1998 and inserted by No 147 of 1997.
capital loss
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
capital loss
"
substituted by No 46 of 1998 and inserted by No 147 of 1997.
capital proceeds
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
capital proceeds
"
inserted by No 46 of 1998.
CGT asset
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
CGT asset
"
inserted by No 46 of 1998.
CGT event
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
CGT event
"
inserted by No 46 of 1998.
Chief Executive Centrelink
has the same meaning as in the
Human Services (Centrelink) Act 1997
.
History
Definition of
"
Chief Executive Centrelink
"
inserted by No 32 of 2011, s 3 and Sch 4 item 282, effective 1 July 2011. For transitional provisions see note under s
202CB(6)
.
child
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
Commissioner
means the Commissioner of Taxation.
Commonwealth education or training payment
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
Commonwealth securities
(Repealed by No 64 of 2020)
History
Definition of
"
Commonwealth securities
"
repealed by No 64 of 2020, s 3 and Sch 3 item 203, effective 1 October 2020. For transitional provisions, see note under s
130
. The definition formerly read:
Commonwealth securities
means bonds, debentures, stock or other securities issued under an Act, but does not include:
(a)
securities (not being securities to which paragraph (b) applies) issued in respect of a loan raised outside Australia unless there is in force a declaration by the Minister, published in the
Gazette
, that those securities shall be Commonwealth securities for the purposes of this Act; or
(b)
securities issued after 12 April 1976 by a bank.
Definition of
"
Commonwealth securities
"
amended by No 110 of 2014, s 3 and Sch 5 item 8, by substituting
"
Minister
"
for
"
Treasurer
"
in para (a), effective 16 October 2014.
Definition of
"
Commonwealth securities
"
substituted by No 50 of 1976.
Former definition inserted by No 17 of 1961.
company
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
complying approved deposit fund
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
complying approved deposit fund
"
inserted by No 15 of 2007, s 3 and Sch 1 item 24, applicable to the 2007-2008 income year and later years.
complying superannuation fund
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
complying superannuation fund
"
inserted by No 15 of 2007, s 3 and Sch 1 item 25, applicable to the 2007-2008 income year and later years.
"concessional deductions"
(Repealed by No 107 of 1989)
History
Definition of
"
concessional deductions
"
omitted by No 107 of 1989 and amended by No 108 of 1981; No 117 of 1975; No 126 of 1974 and No 51 of 1973.
consolidated group
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
consolidated group
"
inserted by No 117 of 2002.
constituent document
, in relation to a company, means the memorandum and articles of association of the company, or any rules or other document constituting the company or governing its activities.
corporate limited partnership
has the meaning given by section
94D
.
History
Definition of
"
corporate limited partnership
"
inserted by No 75 of 2010, s 3 and Sch 1 item 1, applicable in relation to: (a) payments made; and (b) loans made; and (c) debts forgiven; on or after 1 July 2009.
corporate tax entity
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
corporate tax entity
"
inserted by No 23 of 2005.
corporate tax rate
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
corporate tax rate
"
inserted by No 23 of 2005.
cost base
of a CGT asset has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
cost base
"
inserted by No 46 of 1998.
creditable acquisition
has the meaning given by section 195-1 of the GST Act.
History
Definition of
"
creditable acquisition
"
inserted by No 176 of 1999.
"daughter"
(Repealed by No 135 of 1990)
debenture
, in relation to a company, includes debenture stock, bonds, notes and any other securities of the company, whether constituting a charge on the assets of the company or not.
History
Definition of
"
debenture
"
inserted by No 54 of 1971.
debt interest
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
debt interest
"
inserted by No 163 of 2001.
deductible gift recipient
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
deductible gift recipient
"
inserted by No 169 of 2012, s 3 and Sch 2 item 1, effective 3 December 2012.
Defence Department
(Repealed by No 145 of 2010)
History
Definition of
"
Defence Department
"
repealed by No 145 of 2010, s 3 and Sch 3 item 1, effective 17 December 2010. The definition formerly read:
Defence Department
means the Department that:
(a)
deals with matters arising under section 1 of the
Defence Act 1903
; and
(b)
is administered by the Defence Minister.
Definition of
"
Defence Department
"
inserted by No 88 of 2009, s 3 and Sch 5 item 25, effective 18 September 2009.
Defence Minister
(Repealed by No 145 of 2010)
History
Definition of
"
Defence Minister
"
repealed by No 145 of 2010, s 3 and Sch 3 item 2, effective 17 December 2010. The definition formerly read:
Defence Minister
has the meaning given by the
Income Tax Assessment Act 1997
.
Definition of
"
Defence Minister
"
inserted by No 88 of 2009, s 3 and Sch 5 item 26, effective 18 September 2009.
Defence Secretary
(Repealed by No 145 of 2010)
History
Definition of
"
Defence Secretary
"
repealed by No 145 of 2010, s 3 and Sch 3 item 3, effective 17 December 2010. The definition formerly read:
Defence Secretary
means the Secretary of the Defence Department.
Definition of
"
Defence Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 27, effective 18 September 2009.
demerged entity
has the meaning given by section
125-70
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
demerged entity
"
inserted by No 90 of 2002.
demerger
has the meaning given by section
125-70
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
demerger
"
inserted by No 90 of 2002.
demerger allocation
means:
(a)
the total market value of the allocation represented by the ownership interests issued by the demerged entity in itself under a demerger to the owners of ownership interests in the head entity of the demerger group; or
(b)
the total market value of the allocation represented by the ownership interests disposed of by a member of a demerger group under a demerger to the owners of ownership interests in the head entity; or
(c)
the total of both of those market values.
History
Definition of
"
demerger allocation
"
inserted by No 90 of 2002.
demerger dividend
means that part of a demerger allocation that is assessable as a dividend under subsection
44(1)
or that would be so assessable apart from subsections
44(3) and (4)
.
History
Definition of
"
demerger dividend
"
inserted by No 90 of 2002.
demerger group
has the meaning given by section
125-65
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
demerger group
"
inserted by No 90 of 2002.
demerger subsidiary
has the meaning given by section
125-65
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
demerger subsidiary
"
inserted by No 90 of 2002.
demerging entity
has the meaning given by section
125-70
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
demerging entity
"
inserted by No 90 of 2002.
depreciating asset
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
depreciating asset
"
inserted by No 77 of 2001.
Deputy Commissioner
means a Deputy Commissioner of Taxation.
distribution
, when used in a franking context, has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
distribution
"
inserted by No 23 of 2005.
diverted profits tax
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
diverted profits tax
"
inserted by No 27 of 2017, s 3 and Sch 1 item 3, applicable in relation to DPT tax benefits for a year of income that starts on or after 1 July 2017 (whether or not the DPT tax benefit arises in connection with a scheme that was entered into, or was commenced to be carried out, before 1 July 2017).
dividend
includes:
(a)
any distribution made by a company to any of its shareholders, whether in money or other property; and
(b)
any amount credited by a company to any of its shareholders as shareholders;
(c)
(Repealed by No 63 of 1998)
but does not include:
(d)
moneys paid or credited by a company to a shareholder or any other property distributed by a company to shareholders (not being moneys or other property to which this paragraph, by reason of subsection (4), does not apply or moneys paid or credited, or property distributed for the redemption or cancellation of a redeemable preference share), where the amount of the moneys paid or credited, or the amount of the value of the property, is debited against an amount standing to the credit of the share capital account of the company; or
(e)
moneys paid or credited, or property distributed, by a company for the redemption or cancellation of a redeemable preference share if:
(i)
the company gives the holder of the share a notice when it redeems or cancels the share; and
(ii)
the notice specifies the amount paid-up on the share immediately before the cancellation or redemption; and
(iii)
the amount is debited to the company
'
s share capital account;
except to the extent that the amount of those moneys or the value of that property, as the case may be, is greater than the amount specified in the notice as the amount paid-up on the share; or
(f)
a reversionary bonus on a life assurance policy.
Note:
Subsection (4) sets out when paragraph (d) of this definition does not apply.
History
Definition of
"
dividend
"
amended by No 41 of 2011, s 3 and Sch 5 item 61, by inserting a note at the end, effective 27 June 2011.
Definition of
"
dividend
"
amended by No 83 of 2004, s 3 and Sch 1 item 108, by substituting
"
a life assurance policy
"
for
"
a policy of life-assurance
"
in para (f), applicable in relation to amounts received or derived by a taxpayer under or in relation to a life assurance policy after 25 June 2004.
Definition of
"
dividend
"
amended by No 63 of 1998; No 51 of 1973 and substituted by No 85 of 1967.
dividend (withholding) tax
(Repealed by No 85 of 1967)
Division 230 financial arrangement
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
Division 230 financial arrangement
"
inserted by
No 15 of 2009
, s 3 and Sch 1 item 31, effective 26 March 2009.
dual resident investment company
has the meaning given by section
6F
.
History
Definition of
"
dual resident investment company
"
inserted by No 35 of 1990.
dwelling
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
dwelling
"
inserted by No 75 of 2010, s 3 and Sch 1 item 2, applicable in relation to: (a) payments made; and (b) loans made; and (c) debts forgiven; on or after 1 July 2009.
Education Department
(Repealed by No 110 of 2014)
History
Definition of
"
Education Department
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(a), effective 16 October 2014. The definition formerly read:
Education Department
has the meaning given by the
Income Tax Assessment Act 1997
.
Definition of
"
Education Department
"
inserted by No 88 of 2009, s 3 and Sch 5 item 28, effective 18 September 2009.
Education Secretary
(Repealed by No 15 of 2017)
History
Definition of
"
Education Secretary
"
repealed by No 15 of 2017, s 3 and Sch 4 item 21, effective 1 April 2017. The definition formerly read:
Education Secretary
has the meaning given by the
Income Tax Assessment Act 1997
.
Definition of
"
Education Secretary
"
substituted by No 145 of 2010, s 3 and Sch 3 item 4, effective 17 December 2010. The definition formerly read:
Education Secretary
means the Secretary of the Education Department.
Definition of
"
Education Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 29, effective 18 September 2009.
eligible taxable income
has the meaning given by section
102AD
.
History
Definition of
"
eligible taxable income
"
inserted by No 43 of 2011, s 3 and Sch 2 item 2, applicable to assessments for the 2011-12 income year and later income years.
Employment Department
(Repealed by No 41 of 2011)
History
Definition of
"
Employment Department
"
repealed by No 41 of 2011, s 3 and Sch 5 item 15, effective 27 June 2011. The definition formerly read:
Employment Department
means the Department that:
(a)
deals with matters arising under section 1 of the
Fair Work Act 2009
; and
(b)
is administered by the Employment Minister.
Definition of
"
Employment Department
"
inserted by No 88 of 2009, s 3 and Sch 5 item 30, effective 18 September 2009.
Employment Minister
(Repealed by No 41 of 2011)
History
Definition of
"
Employment Minister
"
repealed by No 41 of 2011, s 3 and Sch 5 item 16, effective 27 June 2011. The definition formerly read:
Employment Minister
means the Minister administering section 1 of the
Fair Work Act 2009
.
Definition of
"
Employment Minister
"
inserted by No 88 of 2009, s 3 and Sch 5 item 31, effective 18 September 2009.
Employment Secretary
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
Employment Secretary
"
substituted by No 41 of 2011, s 3 and Sch 5 item 17, effective 27 June 2011. The definition formerly read:
Employment Secretary
means the Secretary of the Employment Department.
Definition of
"
Employment Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 32, effective 18 September 2009.
employment termination payment
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
employment termination payment
"
inserted by No 15 of 2007, s 3 and Sch 1 item 26, applicable to the 2007-2008 income year and later years.
equity holder
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
equity holder
"
inserted by No 163 of 2001.
equity interest
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
equity interest
"
inserted by No 163 of 2001.
ESVCLP
means an early stage venture capital limited partnership within the meaning of subsection
118-407(4)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
ESVCLP
"
inserted by
No 78 of 2007
, s 3 and Sch 8 item 86, effective 21 June 2007.
exempt entity
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
exempt entity
"
inserted by No 46 of 1998.
exempt income
has the meaning given by section
6-20
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
exempt income
"
substituted by No 39 of 1997.
exploration credit
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
exploration credit
"
inserted by No 21 of 2015, s 3 and Sch 6 item 3, applicable in relation to the 2015-16, 2016-17 and 2017-18 income years, but not in relation to any later income years.
exploration development incentive tax offset
(Repealed by No 15 of 2018)
History
Definition of
"
exploration development incentive tax offset
"
repealed by No 15 of 2018, s 3 and Sch 1 item 7, effective 1 April 2018. For application and transitional provisions, see note under s
177F(3)
. The definition formerly read:
exploration development incentive tax offset
means a tax offset under Subdivision 418-B of the
Income Tax Assessment Act 1997
.
Definition of
"
exploration development incentive tax offset
"
inserted by No 21 of 2015, s 3 and Sch 6 item 3, applicable in relation to the 2015-16, 2016-17 and 2017-18 income years, but not in relation to any later income years.
Families Secretary
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
Families Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 33, effective 18 September 2009.
family tier 1 threshold
(Repealed by No 11 of 2014)
History
Definition of
"
family tier 1 threshold
"
repealed by No 11 of 2014, s 3 and Sch 3 item 3(a), effective 1 July 2019. The definition formerly read:
family tier 1 threshold
has the meaning given by the
A New Tax System (Medicare Levy Surcharge
-
Fringe Benefits) Act 1999
.
Definition of
"
family tier 1 threshold
"
inserted by No 84 of 2013, s 3 and Sch 5 item 2, applicable to assessments for the 2012-13 year of income and later years of income.
farm management deposit
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
farm management deposit
"
inserted by
No 79 of 2010
, s 3 and Sch 4 item 9, effective 1 July 2010.
FHSA
(Repealed by No 70 of 2015)
History
Definition of
"
FHSA
"
repealed by No 70 of 2015, s 3 and Sch 1 item 49, effective 1 July 2015. The definition formerly read:
FHSA
has the meaning given by the
First Home Saver Accounts Act 2008.
Definition of
"
FHSA
"
inserted by No 92 of 2008, s 3 and Sch 1 item 5, applicable from 1 October 2008.
FHSA trust
(Repealed by No 70 of 2015)
History
Definition of
"
FHSA trust
"
repealed by No 70 of 2015, s 3 and Sch 1 item 50, effective 1 July 2015. The definition formerly read:
FHSA trust
has the meaning given by the
First Home Saver Accounts Act 2008
.
Definition of
"
FHSA trust
"
inserted by No 45 of 2008, s 3 and Sch 1 item 3, effective 26 June 2008.
FMD provider
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
FMD provider
"
inserted by
No 79 of 2010
, s 3 and Sch 4 item 10, effective 1 July 2010.
foreign superannuation fund
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
foreign superannuation fund
"
substituted by No 15 of 2007, s 3 and Sch 1 item 27, applicable to the 2007-2008 income year and later years. The definition formerly read:
foreign superannuation fund
means a provident, benefit, superannuation or retirement fund:
(a)
that was established in a country outside Australia;
(b)
that was established, and is maintained and applied, for the sole purpose of providing superannuation benefits for persons other than persons who are, or would ordinarily be or become, residents of Australia or residents of a Territory (even if pensions are paid out of the fund to the latter persons); and
(c)
the central management and control of which is carried on outside Australia by persons none of whom is a resident of Australia or a resident of a Territory;
not being a fund for which an amount has been set aside, or to which an amount has been paid, by a taxpayer that is an amount that has been allowed or is allowable as a deduction, or in respect of which a rebate of tax has been allowed or is allowable, under any provision of this Act.
Definition of
"
foreign superannuation fund
"
amended by
No 101 of 2006
, s 3 and Sch 2 items 125 and 126, by amending references to repealed inoperative provisions, and adding
"
(even if pensions are paid out of the fund to the latter persons)
"
after
"
Territory
"
in para (b), effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
Definition of
"
foreign superannuation fund
"
amended by No 181 of 1994, No 117 of 1975, No 216 of 1973 and inserted by No 85 of 1967.
foreign tax
has the meaning given by section
6AB
.
History
Definition of
"
foreign tax
"
inserted by No 75 of 2010, s 3 and Sch 1 item 3, applicable in relation to: (a) payments made; and (b) loans made; and (c) debts forgiven; on or after 1 July 2009.
frankable distribution
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
frankable distribution
"
inserted by No 23 of 2005.
franked part
of a distribution has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
franked part
"
inserted by No 16 of 2003.
franking credit
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
franking credit
"
inserted by No 23 of 2005.
franking debit
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
franking debit
"
inserted by No 23 of 2005.
franking deficit tax
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
franking deficit tax
"
inserted by No 23 of 2005.
franking surplus
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
franking surplus
"
inserted by No 23 of 2005.
franks with an exempting credit
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
franks with an exempting credit
"
inserted by No 23 of 2005.
friendly society
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
friendly society dispensary
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
friendly society dispensary
"
substituted by No 56 of 2010, s 3 and Sch 6 item 121, effective 3 June 2010. The definition formerly read:
friendly society dispensary
means an approved pharmaceutical chemist within the meaning of Part VII of the
National Health Act 1953
, being a friendly society, or a friendly society body, within the meaning of that Part.
Definition of
"
friendly society dispensary
"
substituted by No 103 of 1983 and inserted by No 154 of 1981.
fringe benefit
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
fringe benefit
"
inserted by
No 101 of 2006
, s 3 and Sch 2 item 128, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
full self-assessment taxpayer
, for a year of income (the
current year
), means any of the following:
(a)
a company;
(b)
(Repealed by No 53 of 2016)
(c)
the trustee of a trust that is a public trading trust in relation to the current year for the purposes of Division
6C
of Part
III
;
(d)
the trustee of a complying approved deposit fund or a non-complying approved deposit fund in relation to the current year;
(e)
the trustee of a complying superannuation fund or a non-complying superannuation fund in relation to the current year;
(f)
the trustee of a pooled superannuation trust in relation to the current year.
(g)
(Repealed by No 70 of 2015)
Note:
A corporate limited partnership is taken to be a company under section
94J
, so it will fall within paragraph (a) of this definition.
History
Definition of
"
full self-assessment taxpayer
"
amended by No 53 of 2016, s 3 and Sch 5 item 7, by repealing para (b), applicable to assessments for income years starting on or after 1 July 2016. For transitional provision, see note under Pt III Div
6B
heading. Para (b) formerly read:
(b)
the trustee of a trust that is a corporate unit trust in relation to the current year for the purposes of Division 6B of Part III;
Definition of
"
full self-assessment taxpayer
"
amended by No 70 of 2015, s 3 and Sch 1 items 51 and 52, by substituting
"
year.
"
for
"
year;
"
in para (f) and repealing para (g). Para (g) formerly read:
(g)
the trustee of an FHSA trust in relation to the current year.
Definition of
"
full self-assessment taxpayer
"
amended by No 88 of 2009, s 3 and Sch 5 item 306, by inserting para (g) at the end, applicable in relation to:
(a) the 2009-10 year of income; and
(b) later years of income.
Definition of
"
full self-assessment taxpayer
"
amended by No 15 of 2007, s 3 and Sch 1 item 28, by substituting paras (d), (e) and (f), applicable to the 2007-2008 income year and later years. Paras (d), (e) and (f) formerly read:
(d)
the trustee of a fund that is an eligible ADF (as defined in section
267
) in relation to the current year;
(e)
the trustee of a fund that is an eligible superannuation fund (as defined in section
267
) in relation to the current year;
(f)
the trustee of a fund that is a pooled superannuation trust (as defined in section
267
) in relation to the current year.
Definition of
"
full self-assessment taxpayer
"
inserted by No 179 of 1999.
fund payment
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
fund payment
"
inserted by
No 79 of 2007
, s 3 and Sch 10 item 3, applicable to the first income year starting on or after the first 1 July after 21 June 2007 and later income years.
general insurance company
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
general insurance company
"
inserted by No 97 of 2002.
general insurance policy
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
general insurance policy
"
inserted by No 97 of 2002.
general interest charge
means the charge worked out under Part
IIA
of the
Taxation Administration Act 1953
.
History
Definition of
"
general interest charge
"
amended by
No 101 of 2006
, s 3 and Sch 2 item 1023, by omitting the reference to a repealed inoperative division, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
Definition of
"
general interest charge
"
inserted by No 11 of 1999.
general partner
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
GST Act
means the
A New Tax System (Goods and Services Tax) Act 1999
.
History
Definition of
"
GST Act
"
inserted by No 176 of 1999.
head company
of a consolidated group or a MEC group has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
head company
"
inserted by No 117 of 2002.
head entity
of a demerger group has the meaning given by section
125-65
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
head entity
"
inserted by No 90 of 2002.
Health Department
(Repealed by No 110 of 2014)
History
Definition of
"
Health Department
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(b), effective 16 October 2014. The definition formerly read:
Health Department
has the meaning given by the
Income Tax Assessment Act 1997
.
Definition of
"
Health Department
"
substituted by No 145 of 2010, s 3 and Sch 3 item 5, effective 17 December 2010. The definition formerly read:
Health Department
means the Department that:
(a)
deals with matters arising under section 1 of the
National Health Act 1953
; and
(b)
is administered by the Health Minister.
Definition of
"
Health Department
"
inserted by No 88 of 2009, s 3 and Sch 5 item 34, effective 18 September 2009.
Health Minister
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
Health Minister
"
substituted by No 145 of 2010, s 3 and Sch 3 item 6, effective 17 December 2010. The definition formerly read:
Health Minister
means the Minister administering section 1 of the
National Health Act 1953
.
Definition of
"
Health Minister
"
inserted by No 88 of 2009, s 3 and Sch 5 item 35, effective 18 September 2009.
Health Secretary
(Repealed by No 110 of 2014)
History
Definition of
"
Health Secretary
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(c), effective 16 October 2014. The definition formerly read:
Health Secretary
means the Secretary of the Health Department.
Definition of
"
Health Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 36, effective 18 September 2009.
hold
, in relation to an RSA, has the same meaning as in the
Retirement Savings Accounts Act 1997
.
History
Definition of
"
hold
"
inserted by No 62 of 1997.
holder
, in relation to an RSA, has the same meaning as in the
Retirement Savings Accounts Act 1997
.
History
Definition of
"
holder
"
inserted by No 62 of 1997.
Housing Secretary
(Repealed by No 110 of 2014)
History
Definition of
"
Housing Secretary
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(d), effective 16 October 2014. The definition formerly read:
Housing Secretary
has the meaning given by the
Income Tax Assessment Act 1997
.
Definition of
"
Housing Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 37, effective 18 September 2009.
Immigration Department
(Repealed by No 110 of 2014)
History
Definition of
"
Immigration Department
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(e), effective 16 October 2014. The definition formerly read:
Immigration Department
means the Department that:
(a)
deals with matters arising under section 1 of the
Migration Act 1958
; and
(b)
is administered by the Immigration Minister.
Definition of
"
Immigration Department
"
inserted by No 88 of 2009, s 3 and Sch 5 item 38, effective 18 September 2009.
Immigration Minister
(Repealed by No 110 of 2014)
History
Definition of
"
Immigration Minister
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(f), effective 16 October 2014. The definition formerly read:
Immigration Minister
means the Minister administering section 1 of the
Migration Act 1958
.
Definition of
"
Immigration Minister
"
inserted by No 88 of 2009, s 3 and Sch 5 item 39, effective 18 September 2009.
Immigration Secretary
(Repealed by No 110 of 2014)
History
Definition of
"
Immigration Secretary
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(g), effective 16 October 2014. The definition formerly read:
Immigration Secretary
means the Secretary of the Immigration Department.
Definition of
"
Immigration Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 40, effective 18 September 2009.
income from personal exertion
or
income derived from personal exertion
means income consisting of earnings, salaries, wages, commissions, fees, bonuses, pensions, superannuation allowances, retiring allowances and retiring gratuities, allowances and gratuities received in the capacity of employee or in relation to any services rendered, the proceeds of any business carried on by the taxpayer either alone or as a partner with any other person, any amount received as a bounty or subsidy in carrying on a business, any amount that is included in the assessable income of the taxpayer by reason of section
393-10
of the
Income Tax Assessment Act 1997
, the income from any property where that income forms part of the emoluments of any office or employment of profit held by the taxpayer, and any profit arising from the sale by the taxpayer of any property acquired by the taxpayer for the purpose of profit-making by sale or from the carrying on or carrying out of any profit-making undertaking or scheme, but does not include:
(a)
interest, unless the taxpayer
'
s principal business consists of the lending of money, or unless the interest is received in respect of a debt due to the taxpayer for goods supplied or services rendered by the taxpayer in the course of the taxpayer
'
s business; or
(b)
rents, dividends or non-share dividends.
History
Definition of
"
income from personal exertion
"
or
"
income derived from personal exertion
"
amended by No 41 of 2011, s 3 and Sch 5 Pt 27, by removing gender-specific language, effective 27 June 2011.
Definition of
"
income from personal exertion
"
or
"
income derived from personal exertion
"
amended by
No 79 of 2010
, s 3 and Sch 4 item 11, by substituting
"
section 393-10 of the
Income Tax Assessment Act 1997
"
for
"
section 393-15 of Schedule 2G
"
, effective 1 July 2010.
Definition of
"
income from personal exertion
"
or
"
income derived from personal exertion
"
amended by
No 101 of 2006
, s 3 and Sch 2 item 130, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
Definition of
"
income from personal exertion
"
or
"
income derived from personal exertion
"
amended by No 163 of 2001.
Definition of
"
income from personal exertion
"
or
"
income derived from personal exertion
"
amended by No 85 of 1998; No 138 of 1994; No 205 of 1976 and No 126 of 1974.
income from property
or
income derived from property
means all income not being income from personal exertion.
income tax
means income tax imposed as such by any Act, as assessed under this Act, but, except in section
260
, does not include mining withholding tax or withholding tax.
History
Definition of
"
income tax
"
inserted by No 110 of 2014, s 3 and Sch 5 item 96, effective 16 October 2014.
income tax or tax
(Repealed by No 110 of 2014)
History
Definition of
"
income tax or tax
"
repealed by No 110 of 2014, s 3 and Sch 5 item 95, effective 16 October 2014. The definition formerly read:
income tax or tax
means income tax imposed as such by any Act, as assessed under this Act, but, except in section
260
, does not include mining withholding tax or withholding tax.
Definition of
"
income tax
"
or
"
tax
"
amended by
No 101 of 2006
, s 3 and Sch 2 item 131, by adding
"
, but, except in section 260, does not include mining withholding tax or withholding tax
"
after
"
this Act
"
, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
Definition of
"
income tax
"
or
"
tax
"
substituted by No 39 of 1997.
Indigenous land
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
Indigenous land
"
inserted by No 84 of 2013, s 3 and Sch 1 item 10, effective 28 June 2013.
Indigenous person
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
Indigenous person
"
inserted by No 84 of 2013, s 3 and Sch 1 item 11, effective 28 June 2013.
industrial, commercial or scientific equipment
means industrial, commercial or scientific equipment to the extent that an amount paid or credited as consideration for the use of the equipment, or for the right to use the equipment, is not rent from land (including rent from an interest in land or rent from fixtures on land).
History
Definition of
"
industrial, commercial or scientific equipment
"
inserted by No 34 of 2019, s 3 and Sch 1 item 15, effective 1 July 2019. No 34 of 2019, s 3 and Sch 1 item 16 contains the following application provision:
16 Application
(1)
The amendments made by this Schedule apply to a fund payment made by a managed investment trust in relation to an income year if:
(a)
the fund payment is made on or after 1 July 2019; and
(b)
the income year is the 2019-20 income year or a later income year.
(2)
To avoid doubt, the amendments made by this Schedule also apply for the purposes of working out the MIT cross staple arrangement income of a managed investment trust for a previous income year as mentioned in section
12-438
in Schedule
1
to the
Taxation Administration Act 1953
(as inserted by this Schedule).
…
(5)
Despite subitem (1), the amendment made by item 15 of this Schedule (which relates to the definition of
industrial, commercial or scientific equipment
in the
Income Tax Assessment Act 1936
) applies in relation to amounts paid or credited on or after 1 July 2019.
insurance business
has the same meaning as in the
Insurance Act 1973
.
History
Definition of
"
insurance business
"
inserted by No 97 of 2002.
insurance funds
, in relation to a company, means all the Australian statutory funds of the company and all other funds maintained by the company in respect of the life assurance business of the company.
History
Definition of
"
insurance funds
"
substituted by No 41 of 2005; inserted by No 89 of 2000.
interest income
, in relation to a taxpayer, means income consisting of interest, or a payment in the nature of interest, in respect of:
(a)
money lent, advanced or deposited; or
(b)
credit given; or
(c)
any other form of debt or liability;
whether security is given or not, other than:
(d)
an amount to the extent to which it is a return on an equity interest in a company; or
(e)
interest derived by the taxpayer from a transaction directly related to the active conduct of a trade or business; or
(f)
interest derived by the taxpayer from carrying on a banking business or any other business whose income is principally derived from the lending of money; or
(g)
interest received by the taxpayer during a year of income from a foreign company, where:
(i)
at any time during the year of income, the taxpayer had (or would have had, if the taxpayer were a company and a resident), a voting interest, within the meaning of section
334A
, amounting to at least 10% of the voting power, within the meaning of that section, in that company; and
(ii)
during the year of income or the preceding year of income, the company has not derived an amount of interest income exceeding 10% of the total profits derived by the company during the same year.
History
Definition of
"
interest income
"
inserted by
No 143 of 2007
, s 3 and Sch 1 item 18, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007.
intermediary
(Repealed by
No 32 of 2008
)
History
Definition of
"
intermediary
"
repealed by
No 32 of 2008
, s 3 and Sch 1 item 4, applicable to fund payments made in relation to the first income year starting on or after the first 1 July after 23 June 2008 and later income years. The definition formerly read:
intermediary
has the same meaning as in the
Income Tax Assessment Act 1997
.
Definition of
"
intermediary
"
inserted by
No 79 of 2007
, s 3 and Sch 10 item 4, applicable to the first income year starting on or after the first 1 July after 21 June 2007 and later income years.
international tax sharing treaty
(Repealed by No 101 of 2013)
History
Definition of
"
international tax sharing treaty
"
repealed by No 101 of 2013, s 3 and Sch 2 item 8, applicable: (a) in respect of tax other than withholding tax
-
in relation to income years starting on or after the date mentioned in subsection
815-15(2)
of the
Income Tax (Transitional Provisions) Act 1997
, as inserted; and (b) in respect of withholding tax
-
in relation to income derived, or taken to be derived, in income years starting on or after that date. The definition formerly read:
international tax sharing treaty
:
(a)
means an agreement between Australia and another country under which Australia and the other country share tax revenues from activities undertaken in an area identified by or under the agreement; and
(b)
does not include an agreement within the meaning of the
International Tax Agreements Act 1953
.
Definition of
"
international tax sharing treaty
"
inserted by
No 58 of 2006
, s 3 and Sch 7 item 35, effective 22 June 2006.
junior minerals exploration incentive tax offset
means a tax offset under Subdivision
418-B
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
junior minerals exploration incentive tax offset
"
inserted by No 15 of 2018, s 3 and Sch 1 item 8, effective 1 April 2018. For application and transitional provisions, see note under s
177F(3)
.
life assurance company
has the meaning given to
life insurance company
by the
Income Tax Assessment Act 1997
.
History
Definition of
"
life assurance company
"
inserted by No 89 of 2000.
life assurance policy
has the meaning given to
life insurance policy
by the
Income Tax Assessment Act 1997
.
History
Definition of
"
life assurance policy
"
inserted by No 89 of 2000.
life assurance premium
has the meaning given to
life insurance premium
by the
Income Tax Assessment Act 1997
.
History
Definition of
"
life assurance premium
"
inserted by No 89 of 2000.
limited partner
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
limited partner
"
substituted by No 83 of 2004, s 3 and Sch 3 item 1, applicable to things done on or after 2 December 2003. Act No 83 of 2004, s 3 and Sch 3 item 7 also contains the following transitional provision:
7 Transitional
(1)
This item applies to a limited partnership:
(a)
that was formed as a legal entity on or after 2 December 2003 and before the day on which this Act received the Royal Assent; and
(b)
in respect of which an application has been made to the PDF Board for registration as a VCLP or an AFOF under the
Venture Capital Act 2002
; and
(c)
that could not be registered or conditionally registered as a VCLP or an AFOF before the day on which this Act received the Royal Assent only because it has a legal personality separate from that of its members.
(2)
If the PDF Board decided, before the day on which this Act received the Royal Assent, that it would have registered or conditionally registered a limited partnership to which this item applies as a VCLP or an AFOF under the
Venture Capital Act 2002
had this Act received the Royal Assent before that decision was made:
(a)
the PDF Board is taken to have granted registration or conditional registration of the limited partnership as a VCLP or an AFOF under that Act on the day on which that decision was made; and
(b)
that registration is taken to have been in force for the purposes of section 13-10 of that Act from that day.
The definition formerly read:
limited partner
means a partner of a limited partnership whose liability in relation to the partnership is limited.
Definition of
"
limited partner
"
inserted by No 136 of 2002, s 3 and Sch 2 item 3, applicable to the 2002-2003 income year and later income years.
limited partnership
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
limited partnership
"
substituted by No 83 of 2004, s 3 and Sch 3 item 2, applicable to things done on or after 2 December 2003. For transitional provision, see note under definition of
"
limited partner
"
. The definition formerly read:
limited partnership
means a partnership where the liability of at least one of the partners is limited.
Definition of
"
limited partnership
"
inserted by No 136 of 2002, s 3 and Sch 2 item 4, applicable to the 2002-2003 income year and later income years.
liquidator
means the person who, whether or not appointed as liquidator, is the person required by law to carry out the winding-up of a company.
listed public company
has the same meaning as in the
Income Tax Assessment Act 1997
.
Note:
For the meaning of
listed public company
in Schedule
2F
to this Act, see section
272-135
in that Schedule.
History
Definition of
"
listed public company
"
inserted by No 101 of 2023, s 3 and Sch 4 item 10, effective 1 January 2024.
live stock
(Repealed by No 101 of 2006)
History
Definition of
"
live stock
"
repealed by No 101 of 2006, s 3 and Sch 3 item 2, effective 1 January 2008. The definition formerly read:
live stock
does not include animals used as beasts of burden or working beasts in a business other than a business of primary production.
loss carry back tax offset
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
loss carry back tax offset
"
inserted by No 92 of 2020, s 3 and Sch 2 item 4, effective 1 January 2021.
Former definition of
"
loss carry back tax offset
"
repealed by No 96 of 2014, s 3 and Sch 2 item 3, effective 30 September 2014 and applicable to assessments for the income year before the income year in which this Schedule commences, for the income year in which this Schedule commences and for later income years. For transitional and saving provision see note under s
177C(1)
. The definition formerly read:
loss carry back tax offset
has the same meaning as in the
Income Tax Assessment Act 1997
.
Former definition of
"
loss carry back tax offset
"
inserted by No 88 of 2013, s 3 and Sch 5 item 28, effective 29 June 2013.
loss year
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
loss year
"
inserted by No 39 of 1997.
managed investment trust
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
managed investment trust
"
inserted by
No 79 of 2007
, s 3 and Sch 10 item 5, applicable to the first income year starting on or after the first 1 July after 21 June 2007 and later income years.
MEC group
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
MEC group
"
inserted by No 117 of 2002.
medical expense rebate higher phase-in limit
(Repealed by No 11 of 2014)
History
Definition of
"
medical expense rebate higher phase-in limit
"
repealed by No 11 of 2014, s 3 and Sch 3 item 3(b), effective 1 July 2019. The definition formerly read:
medical expense rebate higher phase-in limit
has the meaning given by subsection 159Q(5).
Definition of
"
medical expense rebate higher phase-in limit
"
inserted by No 84 of 2013, s 3 and Sch 5 item 3, applicable to assessments for the 2012-13 year of income and later years of income.
medical expense rebate lower phase-in limit
(Repealed by No 11 of 2014)
History
Definition of
"
medical expense rebate lower phase-in limit
"
repealed by No 11 of 2014, s 3 and Sch 3 item 3(c), effective 1 July 2019. The definition formerly read:
medical expense rebate lower phase-in limit
has the meaning given by subsection 159Q(6).
Definition of
"
medical expense rebate lower phase-in limit
"
inserted by No 84 of 2013, s 3 and Sch 5 item 4, applicable to assessments for the 2012-13 year of income and later years of income.
Medicare levy
means Medicare levy imposed as such by any Act as assessed under this Act.
History
Definition of
"
Medicare levy
"
inserted by No 12 of 2012, s 3 and Sch 6 item 219, effective 21 March 2012.
Medicare levy (fringe benefits) surcharge
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
Medicare levy (fringe benefits) surcharge
"
inserted by No 12 of 2012, s 3 and Sch 6 item 220, effective 21 March 2012.
member
of a consolidated group or MEC group has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
member
"
inserted by No 117 of 2002.
member of a family tax benefit (Part B) family without shared care
: a taxpayer is a
member of a family tax benefit (Part B) family without shared care
if:
(a)
the taxpayer, or the taxpayer
'
s spouse while being the taxpayer
'
s partner (within the meaning of the
A New Tax System (Family Assistance) Act 1999
), is eligible for family tax benefit at the Part B rate (within the meaning of that Act); and
(b)
clause
31
of Schedule
1
to that Act does not apply in respect of the Part B rate.
History
Definition of
"
member of a family tax benefit (Part B) family without shared care
"
inserted by No 105 of 2010, s 3 and Sch 1 item 37, effective 1 October 2010.
minerals
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
mining withholding tax
means income tax payable in accordance with section
128V
.
History
Definition of
"
mining withholding tax
"
inserted by No 27 of 1979.
mortgage
includes any charge, lien or encumbrance to secure the repayment of money.
mutual life assurance company
means a life assurance company the profits of which are divisible only among the policy holders.
History
Definition of
"
mutual life assurance company
"
substituted by No 101 of 2004, s 3 and Sch 11 item 44, effective 1 July 2000. The definition formerly read:
mutual life assurance company
has the same meaning as in Division
8
of Part
III
(as in force immediately before 1 July 2000).
Definition of
"
mutual life assurance company
"
inserted by No 89 of 2000.
natural resource
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
necessary connection with Australia
(Repealed by
No 168 of 2006
)
History
Definition of
"
necessary connection with Australia
"
repealed by
No 168 of 2006
, s 3 and Sch 4 item 14, applicable to CGT events that happen on or after 12 December 2006. The definition formerly read:
necessary connection with Australia
has the same meaning as in the
Income Tax Assessment Act 1997
.
Definition of
"
necessary connection with Australia
"
inserted by No 46 of 1998.
net capital gain
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
net capital gain
"
substituted by No 46 of 1998 and inserted by No 147 of 1997.
net capital loss
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
net capital loss
"
substituted by No 46 of 1998 and inserted by No 147 of 1997.
net GST
has the meaning given by section
995-1
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
net GST
"
inserted by No 176 of 1999.
net input tax credit
has the meaning given by section
995-1
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
net input tax credit
"
inserted by No 176 of 1999.
non-assessable non-exempt income
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
non-assessable non-exempt income
"
inserted by No 66 of 2003.
non-complying approved deposit fund
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
non-complying approved deposit fund
"
inserted by No 15 of 2007, s 3 and Sch 1 item 29, applicable to the 2007-2008 income year and later years.
non-complying superannuation fund
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
non-complying superannuation fund
"
inserted by No 15 of 2007, s 3 and Sch 1 item 30, applicable to the 2007-2008 income year and later years.
non-entity joint venture
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
non-entity joint venture
"
inserted by No 92 of 2000.
non-equity share
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
non-equity share
"
substituted by
No 58 of 2006
, s 3 and Sch 7 item 36, effective 22 June 2006. The definition formerly read:
non-equity share
means a share that is not an equity interest in the company.
Note:
A share will not be an equity interest if it is characterised as, or forms part of a larger interest that is characterised as, a debt interest under Subdivision
974-B
of the
Income Tax Assessment Act 1997
.
Definition of
"
non-equity share
"
inserted by No 163 of 2001. For application provisions, see note under s
6AB(5B)
.
non-resident
means a person who is not a resident of Australia.
"non-resident dividend income"
(Repealed by No 85 of 1967)
non-resident superannuation fund
(Repealed by No 15 of 2007)
History
Definition of
"
non-resident superannuation fund
"
repealed by No 15 of 2007, s 3 and Sch 1 item 31, applicable to the 2007-2008 income year and later years. The definition formerly read:
non-resident superannuation fund
has the meaning given by section
6E
.
Definition of
"
non-resident superannuation fund
"
inserted by No 181 of 1994.
non-share capital account
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
non-share capital account
"
inserted by No 163 of 2001.
non-share capital return
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
non-share capital return
"
inserted by No 163 of 2001.
non-share distribution
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
non-share distribution
"
inserted by No 163 of 2001.
non-share dividend
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
non-share dividend
"
inserted by No 163 of 2001.
non-share equity interest
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
non-share equity interest
"
inserted by No 163 of 2001.
once-only deduction
:
a deduction in a year of income in respect of a percentage of expenditure is a
once-only deduction
, in relation to the expenditure, if no deduction is allowable in respect of a percentage of the expenditure in any other year of income.
History
Definition of
"
once-only deduction
"
inserted by No 75 of 2010, s 3 and Sch 3 item 4, applicable in relation to: (a) payments made; and (b) loans made; and (c) debts forgiven; on or after 1 July 2009.
ordinary class
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
ordinary class
"
inserted by No 89 of 2000.
ordinary income
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
ordinary income
"
inserted by No 46 of 1998.
outstanding claims
(Repealed by
No 79 of 2010
)
History
Definition of
"
outstanding claims
"
repealed by
No 79 of 2010
, s 3 and Sch 5 item 3, applicable to the first income year starting on or after 1 July 2010 and later income years. The definition formerly read:
outstanding claims
at the end of a year of income under general insurance policies issued by a general insurance company has the same meaning as in the
Income Tax Assessment Act 1997
.
Definition of
"
outstanding claims
"
inserted by No 97 of 2002.
over-franking tax
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
over-franking tax
"
inserted by No 23 of 2005.
owner
of a farm management deposit has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
owner
"
inserted by
No 79 of 2010
, s 3 and Sch 4 item 12, effective 1 July 2010.
Definition of
"
owner
"
inserted by
No 79 of 2010
, s 3 and Sch 4 item 12, effective 1 July 2010.
ownership interest
has the meaning given by section
125-60
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
ownership interest
"
inserted by No 90 of 2002.
paid
in relation to dividends or non-share dividends includes credited or distributed.
History
Definition of
"
paid
"
amended by No 163 of 2001.
paid-up share capital
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
paid-up share capital
"
substituted by No 56 of 2010, s 3 and Sch 6 item 122, effective 3 June 2010. The definition formerly read:
paid-up share capital
of a company means the amount standing to the credit of the company
'
s share capital account reduced by the amount (if any) that represents amounts unpaid on shares.
Definition of
"
paid-up share capital
"
substituted by No 56 of 2010.
parent
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
parent
"
inserted by No 144 of 2008, s 3 and Sch 14 item 7, applicable in relation to the 2009-2010 year of income and later years of income.
part of a distribution that is franked with an exempting credit
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
part of a distribution that is franked with an exempting credit
"
inserted by No 16 of 2003.
part of a distribution that is franked with a venture capital credit
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
part of a distribution that is franked with a venture capital credit
"
inserted by No 16 of 2003.
partnership
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
partnership
"
substituted by No 83 of 2004, s 3 and Sch 3 item 3, applicable to things done on or after 2 December 2003. For transitional provision, see note under definition of
"
limited partner
"
. The definition formerly read:
'partnership'
means an association of persons carrying on business as partners or in receipt of income jointly, but does not include a company;
passive commodity gain
, in relation to a taxpayer, in relation to a year of income, means a gain realised by the taxpayer in a year of income from disposing of a forward contract or a futures contract, or a right or option in respect of a forward contract or a futures contract, in respect of any thing (a
commodity
):
(a)
that is capable of delivery under an agreement for its delivery; and
(b)
that is not an instrument creating or evidencing a chose in action;
unless the contract, right or option relates to the carrying on by the taxpayer of a business:
(c)
of producing or processing the commodity; or
(d)
that involves the use of the commodity as a raw material in a production process.
History
Definition of
"
passive commodity gain
"
inserted by
No 143 of 2007
, s 3 and Sch 1 item 19, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007.
passive income
, in relation to a taxpayer, in relation to a year of income means:
(a)
dividends (within the meaning of this section) and non-share dividends paid to the taxpayer in the year of income; or
(b)
unit trust dividends (within the meaning of Division
6C
) paid to the taxpayer in the year of income; or
(c)
a distribution made to the taxpayer in the year of income that is taken to be a dividend because of section
47
; or
(d)
an amount that is taken to be a dividend paid to the taxpayer in the year of income because of section
47A
or
108
or Division
7A
of Part
III
; or
(e)
interest income derived by the taxpayer in the year of income; or
(f)
annuities derived by the taxpayer in the year of income; or
(g)
income derived by the taxpayer by way of rent (within the meaning of Part
X
) in the year of income; or
(h)
royalties derived by the taxpayer in the year of income; or
(i)
an amount derived by the taxpayer in the year of income as consideration for the assignment, in whole or in part, of any copyright, patent, design, trade mark or other like property or right;or
(j)
profits of a capital nature that accrued to the taxpayer in the year of income; or
(k)
passive commodity gains that accrued to the taxpayer in the year of income; or
(l)
an amount included in the assessable income of the taxpayer of the year of income under section
102AAZD
,
456
,
457
or
459A
;
but does not include:
(m)
an amount that arose from an asset necessarily held by the taxpayer in connection with an insurance business actively carried on by the taxpayer; or
(n)
an amount included in the taxpayer
'
s assessable income under Division
83A
of the
Income Tax Assessment Act 1997
(about employee share schemes).
History
Definition of
"
passive income
"
amended by No 53 of 2016, s 3 and Sch 5 item 8, by omitting
"
6B or
"
before
"
6C
"
from para (b), applicable to assessments for income years starting on or after 1 July 2016. For transitional provision, see note under Pt III Div
6B
heading.
Definition of
"
passive income
"
amended by No 114 of 2010, s 3 and Sch 1 item 2, by substituting
"
or 459A
"
for
"
, 459A or 529
"
in para (l), applicable in relation to the 2010-11 year of income for a taxpayer and later years of income.
Definition of
"
passive income
"
amended by No 133 of 2009, s 3 and Sch 1 item 9, by substituting
"
Division 83A of the
Income Tax Assessment Act 1997
(about employee share schemes)
"
for
"
Division
13A
"
in para (n), applicable in relation to the ESS interests mentioned in subsections
83A-5(1)
and
(2)
of the
Income Tax (Transitional Provisions) Act 1997
.
Definition of
"
passive income
"
inserted by
No 143 of 2007
, s 3 and Sch 1 item 20, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007.
PDF
(pooled development fund) means a company that is a PDF within the meaning of the
Pooled Development Funds Act 1992
, but does not include such a company in the capacity of a trustee.
History
Definition of
"
PDF
"
inserted by No 98 of 1992.
PDF component
, in relation to a company that becomes a PDF during the year of income and is still a PDF at the end of the year of income, means:
(a)
in a case where the amount that, if:
(i)
the period beginning at the start of the year of income and ending immediately before the company becomes a PDF were a year of income of the company; and
(ii)
the period (
the PDF notional year
) beginning when the company becomes a PDF and ending at the end of the year of income were a year of income of the company; and
(iii)
paragraph (c) of the definition of
taxable income
were omitted;
would be the company
'
s taxable income of the PDF notional year is $1 or more
-
that amount; or
(b)
otherwise
-
a nil amount.
History
Definition of
"
PDF component
"
inserted by No 98 of 1992.
permanent establishment
,
in relation to a person (including the Commonwealth, a State or an authority of the Commonwealth or a State), means a place at or through which the person carries on any business and, without limiting the generality of the foregoing, includes:
(a)
a place where the person is carrying on business through an agent;
(b)
a place where the person has, is using or is installing substantial equipment or substantial machinery;
(c)
a place where the person is engaged in a construction project; and
(d)
where the person is engaged in selling goods manufactured, assembled, processed, packed or distributed by another person for, or at or to the order of, the first-mentioned person and either of those persons participates in the management, control or capital of the other person or another person participates in the management, control or capital of both of those persons
-
the place where the goods are manufactured, assembled, processed, packed or distributed;
but does not include:
(e)
a place where the person is engaged in business dealings through a
bona fide
commission agent or broker who, in relation to those dealings, acts in the ordinary course of his or her business as a commission agent or broker and does not receive remuneration otherwise than at a rate customary in relation to dealings of that kind, not being a place where the person otherwise carries on business;
(f)
a place where the person is carrying on business through an agent:
(i)
who does not have, or does not habitually exercise, a general authority to negotiate and conclude contracts on behalf of the person; or
(ii)
whose authority extends to filling orders on behalf of the person from a stock of goods or merchandise situated in the country where the place is located, but who does not regularly exercise that authority;
not being a place where the person otherwise carries on business; or
(g)
a place of business maintained by the person solely for the purpose of purchasing goods or merchandise.
Note:
Subsection (6) treats a person as carrying on, at or through a permanent establishment that is a place described in paragraph (d) of this definition, the business of selling the goods manufactured, assembled, processed, packed or distributed by the other person as described in that paragraph.
History
Definition of
"
permanent establishment
"
amended by No 41 of 2011, s 3 and Sch 5 Pt 27, by removing gender-specific language, effective 27 June 2011.
Definition of
"
permanent establishment
"
amended by No 41 of 2011, s 3 and Sch 5 item 62, by inserting a note at the end, effective 27 June 2011.
Definition of
"
permanent establishment
"
inserted by No 4 of 1968.
person
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
person
"
substituted by No 56 of 2010, s 3 and Sch 6 item 123, effective 3 June 2010. The definition formerly read:
person
includes a company.
petroleum exploration company
(Repealed by No 80 of 1975)
History
Definition of
"
petroleum exploration company
"
inserted by No 69 of 1963.
pooled superannuation trust
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
pooled superannuation trust
"
inserted by No 15 of 2007, s 3 and Sch 1 item 32, applicable to the 2007-2008 income year and later years.
post FIF abolition credit
means a post FIF abolition credit arising under:
(a)
subsection
23AK(6)
; and
(b)
subsection
717-220(2)
of the
Income Tax Assessment Act 1997
; and
(c)
subsection
717-255(2)
of that Act.
History
Definition of
"
post FIF abolition credit
"
inserted by No 114 of 2010, s 3 and Sch 1 item 3, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income.
post FIF abolition debit
means a post FIF abolition debit arising under:
(a)
subsection
23AK(2)
; and
(b)
subsection
23B(1)
; and
(c)
subsection
717-220(3)
of the
Income Tax Assessment Act 1997
; and
(d)
subsection
717-255(3)
of that Act.
History
Definition of
"
post FIF abolition debit
"
inserted by No 114 of 2010, s 3 and Sch 1 item 4, applicable in relation to the 2010-11 year of income for a taxpayer and lateryears of income.
post FIF abolition surplus
has the meaning given by section
23AK
.
History
Definition of
"
post FIF abolition surplus
"
inserted by No 114 of 2010, s 3 and Sch 1 item 5, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income.
prescribed dual resident
means a company that satisfies either of the following conditions:
(a)
the first condition is that:
(i)
the company is a resident of Australia within the meaning of subsection
6(1)
; and
(ii)
there is an agreement (within the meaning of the
International Tax Agreements Act 1953
) in force in respect of a foreign country; and
(iii)
the agreement contains a provision that is expressed to apply where, apart from the provision, the company would, for the purposes of the agreement, be both a resident of Australia and a resident of the foreign country; and
(iv)
that provision has the effect that the company is, for the purposes of the agreement, a resident solely of the foreign country;
(b)
the alternative condition is that the company:
(i)
is a resident of Australia within the meaning of subsection
6(1)
for no other reason than that it carries on business in Australia and has its central management and control in Australia; and
(ii)
it is also a resident of another country; and
(iii)
its central management and control is in another country.
History
Definition of
"
prescribed dual resident
"
inserted by No 95 of 1997.
present war
(Repealed by No 216 of 1973)
primary production business
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
primary production business
"
inserted by
No 101 of 2006
, s 3 and Sch 2 item 135, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
principal beneficiary
of a special disability trust has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
principal beneficiary
"
inserted by No 90 of 2010, s 3 and Sch 4 item 1, applicable to assessments for the 2008-09 income year and later income years.
private ancillary fund
(Repealed by No 147 of 2011)
History
Definition of
"
private ancillary fund
"
repealed by No 147 of 2011, s 3 and Sch 8 item 42, effective 29 November 2011. The definition formerly read:
private ancillary fund
has the meaning given by section 426-105 in Schedule 1 to the
Taxation Administration Act 1953
.
Definition of
"
private ancillary fund
"
inserted by No 88 of 2009, s 3 and Sch 2 item 2, effective 1 October 2009.
private company
, in relation to a year of income, means a company that is a private company in relation to that year of income for the purposes of Division
7
of Part III.
proclaimed superannuation standards day
means 1 July 1990.
History
Definition of
"
proclaimed superannuation standards day
"
amended by No 82 of 1993 and inserted by No 138 of 1987.
provider
, in relation to an RSA, has the same meaning as in the
Retirement Savings Accounts Act 1997
.
History
Definition of
"
provider
"
inserted by No 62 of 1997.
prudential standards
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
prudential standards
"
inserted by No 163 of 2001.
rebatable benefit
has the meaning given by subsection
160AAA(1)
.
History
Definition of
"
rebatable benefit
"
inserted by No 159 of 2011, s 3 and Sch 3 item 1, applicable to the 2012-13 year of income and later years of income.
rebatable medical expense amount
(Repealed by No 11 of 2014)
History
Definition of
"
rebatable medical expense amount
"
repealed by No 11 of 2014, s 3 and Sch 3 item 3(d), effective 1 July 2019. The definition formerly read:
rebatable medical expense amount
has the meaning given by subsections 159P(1) and (3).
Definition of
"
rebatable medical expense amount
"
inserted by No 84 of 2013, s 3 and Sch 5 item 5, applicable to assessments for the 2012-13 year of income and later years of income.
rebate income
of an individual for a year of income is the sum of:
(a)
the individual
'
s taxable income for the year of income, disregarding the individual
'
s assessable FHSS released amount (within the meaning of the
Income Tax Assessment Act 1997
) for the year of income; and
(b)
the individual
'
s reportable superannuation contributions for the year of income; and
(c)
the individual
'
s total net investment loss for the year of income; and
(d)
the individual
'
s adjusted fringe benefits total for the year of income.
History
Definition of
"
rebate income
"
amended by No 132 of 2017, s 3 and Sch 1 item 26, by inserting
"
, disregarding the individual
'
s assessable FHSS released amount (within the meaning of the
Income Tax Assessment Act 1997
) for the year of income
"
in para (a), effective 1 July 2018.
Definition of
"
rebate income
"
inserted by No 27 of 2009, s 3 and Sch 3 item 2, applicable in relation to income years starting on or after 1 July 2009.
recognised large credit union
has the meaning given by section
6H
.
History
Definition of
"
recognised large credit union
"
inserted by No 57 of 1993.
recognised medium credit union
has the meaning given by section
6H
.
History
Definition of
"
recognised medium credit union
"
inserted by No 57 of 1993.
recognised small credit union
has the meaning given by section
6H
.
History
Definition of
"
recognised small credit union
"
inserted by No 57 of 1993.
reduced cost base
of a CGT asset has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
reduced cost base
"
inserted by No 46 of 1998.
registered tax agent
(Repealed by No 114 of 2009)
History
Definition of
"
registered tax agent
"
repealed by No 114 of 2009, s 3 and Sch 1 item 5, effective 1 March 2010. The definition formerly read:
registered tax agent
has the meaning given by section
251A
.
Definition of
"
registered tax agent
"
inserted by No 174 of 1997.
relative
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
reportable fringe benefits total
(Repealed by No 55 of 2016)
History
Definition of
"
reportable fringe benefits total
"
repealed by No 55 of 2016, s 3 and Sch 15 item 3, effective 1 January 2017. For application provisions, see note under the definition of
"
adjusted fringe benefits total
"
. The definition formerly read:
reportable fringe benefits total
has the same meaning as in the
Fringe Benefits Tax Assessment Act 1986
.
Definition of
"
reportable fringe benefits total
"
substituted by No 27 of 2009, s 3 and Sch 3 item 3, applicable in relation to income years starting on or after 1 July 2009. The definition formerly read:
reportable fringe benefits total
for a year of income for a person who is an employee (within the meaning of the
Fringe Benefits Tax Assessment Act 1986
) means the employee
'
s reportable fringe benefits total (as defined in that Act) for the year of income.
Definition of
"
reportable fringe benefits total
"
inserted by No 17 of 1999.
reportable superannuation contributions
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
reportable superannuation contributions
"
inserted by No 27 of 2009, s 3 and Sch 3 item 4, applicable in relation to income years starting on or after 1 July 2009.
Research Department
(Repealed by No 110 of 2014)
History
Definition of
"
Research Department
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(h), effective 16 October 2014. The definition formerly read:
Research Department
means the Department that:
(a)
deals with matters arising under section 1 of the
Australian Research Council Act 2001
; and
(b)
is administered by the Research Minister.
Definition of
"
Research Department
"
inserted by No 88 of 2009, s 3 and Sch 5 item 41, effective 18 September 2009.
Research Minister
(Repealed by No 110 of 2014)
History
Definition of
"
Research Minister
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(i), effective 16 October 2014. The definition formerly read:
Research Minister
means the Minister administering section 1 of the
Australian Research Council Act 2001
.
Definition of
"
Research Minister
"
inserted by No 88 of 2009, s 3 and Sch 5 item 42, effective 18 September 2009.
Research Secretary
(Repealed by No 110 of 2014)
History
Definition of
"
Research Secretary
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(j), effective 16 October 2014. The definition formerly read:
Research Secretary
means the Secretary of the Research Department.
Definition of
"
Research Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 43, effective 18 September 2009.
resident
or
resident of Australia
means:
(a)
a person, other than a company, who resides in Australia and includes a person:
(i)
whose domicile is in Australia, unless the Commissioner is satisfied that the person
'
s permanent place of abode is outside Australia;
(ii)
who has actually been in Australia, continuously or intermittently, during more than one-half of the year of income, unless the Commissioner is satisfied that the person
'
s usual place of abode is outside Australia and that the person does not intend to take up residence in Australia; or
(iii)
who is:
(A)
a member of the superannuation scheme established by deed under the
Superannuation Act 1990
; or
(B)
an eligible employee for the purposes of the
Superannuation Act 1976
; or
(C)
the spouse, or a child under 16, of a person covered by sub-subparagraph (A) or (B); and
(b)
a company which is incorporated in Australia, or which, not being incorporated in Australia, carries on business in Australia, and has either its central management and control in Australia, or its voting power controlled by shareholders who are residents of Australia.
History
Definition of
"
resident
"
or
"
resident of Australia
"
amended by No 41 of 2011, s 3 and Sch 5 Pt 27, by removing gender-specific language, effective 27 June 2011.
Definition of
"
resident
"
or
"
resident of Australia
"
amended by No 80 of 1992 and No 205 of 1976.
resident superannuation fund
(Repealed by No 15 of 2007)
History
Definition of
"
resident superannuation fund
"
repealed by No 15 of 2007, s 3 and Sch 1 item 33, applicable to the 2007-2008 income year and later years. The definition formerly read:
resident superannuation fund
has the meaning given by section
6E
.
Definition of
"
resident superannuation fund
"
inserted by No 181 of 1994.
resident trust for CGT purposes
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
resident trust for CGT purposes
"
inserted by No 46 of 1998.
return
on a debt interest or equity interest has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
return
"
inserted by No 163 of 2001.
return of income
means a return of income, or of profits or gains of a capital nature, or of both income and such profits or gains.
History
Definition of
"
return of income
"
inserted by No 52 of 1986.
royalty
or
royalties
includes any amount paid or credited, however described or computed, and whether the payment or credit is periodical or not, to the extent to which it is paid or credited, asthe case may be, as consideration for:
(a)
the use of, or the right to use, any copyright, patent, design or model, plan, secret formula or process, trade mark, or other like property or right;
(b)
the use of, or the right to use, any industrial, commercial or scientific equipment;
(c)
the supply of scientific, technical, industrial or commercial knowledge or information;
(d)
the supply of any assistance that is ancillary and subsidiary to, and is furnished as a means of enabling the application or enjoyment of, any such property or right as is mentioned in paragraph (a), any such equipment as is mentioned in paragraph (b) or any such knowledge or information as is mentioned in paragraph (c);
(da)
the reception of, or the right to receive, visual images or sounds, or both, transmitted to the public by:
(i)
satellite; or
(ii)
cable, optic fibre or similar technology;
(db)
the use in connection with television broadcasting or radio broadcasting, or the right to use in connection with television broadcasting or radio broadcasting, visual images or sounds, or both, transmitted by:
(i)
satellite; or
(ii)
cable, optic fibre or similar technology;
(dc)
the use of, or the right to use, some or all of the part of the spectrum (within the meaning of the
Radiocommunications Act 1992
) specified in a spectrum licence issued under that Act;
(e)
the use of, or the right to use:
(i)
motion picture films;
(ii)
films or video tapes for use in connexion with television; or
(iii)
tapes for use in connexion with radio broadcasting; or
(f)
a total or partial forbearance in respect of:
(i)
the use of, or the granting of the right to use, any such property or right as is mentioned in paragraph (a) or any such equipment as is mentioned in paragraph (b);
(ii)
the supply of any such knowledge or information as is mentioned in paragraph (c) or of any such assistance as is mentioned in paragraph (d);
(iia)
the reception of, or the granting of the right to receive, any such visual images or sounds as are mentioned in paragraph (da);
(iib)
the use of, or the granting of the right to use, any such visual images or sounds as are mentioned in paragraph (db);
(iic)
the use of, or the granting of the right to use, some or all of such part of the spectrum specified in a spectrum licence as is mentioned in paragraph (dc); or
(iii)
the use of, or the granting of the right to use, any such property as is mentioned in paragraph (e).
History
Definition of
"
royalty
"
or
"
royalties
"
amended by No 31 of 2014, s 3 and Sch 4 item 97, by substituting
"
trade mark
"
for
"
trademark
"
in para (a), effective 24 June 2014.
Definition of
"
royalty
"
or
"
royalties
"
amended by No 54 of 1999; No 224 of 1992; No 24 of 1980 and substituted by No 143 of 1976.
Former definition inserted by No 4 of 1968.
RSA
has the same meaning as in the
Income Tax Assessment Act 1997
.
Note:
That Act defines
RSA
as having the meaning given by the
Retirement Savings Accounts Act 1997
.
History
Definition of
"
RSA
"
substituted by No 41 of 2011, s 3 and Sch 5 item 63, effective 27 June 2011. The definition formerly read:
RSA
has the same meaning as in the
Retirement Savings Accounts Act 1997
.
Definition of
"
RSA
"
substituted by No 41 of 2011.
Definition of
"
RSA
"
inserted by No 62 of 1997.
RSA provider
has the same meaning as in the
Income Tax Assessment Act 1997
.
Note:
That Act defines
RSA provider
as having the same meaning as in the
Retirement Savings Accounts Act 1997
.
History
Definition of
"
RSA provider
"
substituted by No 41 of 2011, s 3 and Sch 5 item 64, effective 27 June 2011. The definition formerly read:
RSA provider
has the same meaning as in the
Retirement Savings Accounts Act 1997
.
Definition of
"
RSA provider
"
substituted by No 41 of 2011.
Definition of
"
RSA provider
"
inserted by No 62 of 1997.
Second Commissioner
means a Second Commissioner of Taxation.
History
Definition of
"
Second Commissioner
"
amended by No 216 of 1973.
"SGIO"
(Repealed by No 101 of 2004)
History
Definition of
"
SGIO
"
amended by No 169 of 1995, substituted by No 5 of 1995 and inserted by No 105 of 1989.
share
in a company has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
share
"
inserted by
No 101 of 2006
, s 3 and Sch 2 item 137, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
share capital account
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
share capital account
"
substituted by
No 80 of 2006
, s 3 and Sch 4 item 21, applicable for the purpose of determining whether an account is a share capital account when applying a provision of the
Income Tax Assessment Act 1997
or the
Income Tax Assessment Act 1936
in relation to a time that is after 30 June 2006, even if the account was in existence before that date. The definition formerly read:
share capital account
has the meaning given by section
6D
.
Definition of
"
share capital account
"
substituted by No 117 of 1999 and inserted by No 63 of 1998.
shareholder
includes member or stockholder.
shareholders
'
funds
has the same meaning as in the
Life Insurance Act 1995
.
History
Definition of
"
shareholders
'
funds
"
inserted by No 89 of 2000.
"share premium account"
(Repealed by No 63 of 1998)
shorter period of review taxpayer or SPOR taxpayer
(Repealed by No 161 of 2005)
History
Definition of
"
shorter period of review taxpayer
"
or
"
SPOR taxpayer
"
inserted by No 179 of 1999.
shortfall interest charge
means the charge worked out under Division
280
in Schedule
1
to the
Taxation Administration Act 1953
.
History
Definition of
"
shortfall interest charge
"
inserted by No 75 of 2005.
singles tier 1 threshold
(Repealed by No 11 of 2014)
History
Definition of
"
singles tier 1 threshold
"
repealed by No 11 of 2014, s 3 and Sch 3 item 3(e), effective 1 July 2019. The definition formerly read:
singles tier 1 threshold
has the meaning given by the
A New Tax System (Medicare Levy Surcharge
-
Fringe Benefits) Act 1999
.
Definition of
"
singles tier 1 threshold
"
inserted by No 84 of 2013, s 3 and Sch 5 item 6, applicable to assessments for the 2012-13 year of income and later years of income.
small business entity
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
small business entity
"
inserted by
No 80 of 2007
, s 3 and Sch 3 item 97, applicable in relation to the 2007-08 income year and later income years.
social security law
has the meaning given by the
Social Security Act 1991
.
History
Definition of
"
social security law
"
inserted by No 88 of 2009, s 3 and Sch 5 item 44, effective 18 September 2009.
special disability trust
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
special disability trust
"
inserted by No 90 of 2010, s 3 and Sch 4 item 2, applicable to assessments for the 2008-09 income year and later income years.
spouse
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
"State income tax law"
(Repealed by No 73 of 1989)
History
Former definition of
"
State income tax law
"
amended by No 108 of 1981 and inserted by No 87 of 1978.
statutory income
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
statutory income
"
inserted by No 70 of 2015, s 3 and Sch 3 item 8, applicable in relation to years of income starting on or after 1 July 2015.
Student Assistance Secretary
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
Student Assistance Secretary
"
inserted by No 15 of 2017, s 3 and Sch 4 item 22, effective 1 April 2017.
subsidiary member
of a consolidated group or a MEC group has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
subsidiary member
"
inserted by No 117 of 2002.
superannuation benefits
means individual personal benefits, pensions or retiring allowances.
History
Definition of
"
superannuation benefits
"
inserted by No 103 of 1965.
superannuation fund
means:
(a)
a scheme for the payment of superannuation benefits upon retirement or death; or
(b)
a superannuation fund within the definition of
"
superannuation fund
"
in section
10
of the
Superannuation Industry (Supervision) Act 1993
.
History
Definition of
"
superannuation fund
"
substituted by No 181 of 1994; No 97 of 1989 and inserted by No 138 of 1987.
superannuation fund for foreign residents
has the meaning given by subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
superannuation fund for foreign residents
"
inserted by No 15 of 2007, s 3 and Sch 1 item 34, applicable to the 2007-2008 income year and later years.
superannuation lump sum
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
superannuation lump sum
"
inserted by No 15 of 2007, s 3 and Sch 1 item 35, applicable to the 2007-2008 income year and later years.
tainted
, in relation to a company
'
s share capital account, has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
tainted
"
inserted by No 80 of 2006, s 3 and Sch 4 item 3, applicable in relation to transfers made into a company
'
s share capital account after 25 May 2006.
tax
means income tax imposed as such by any Act, as assessed under this Act, but does not include mining withholding tax or withholding tax.
History
Definition of
"
tax
"
inserted by No 110 of 2014, s 3 and Sch 5 item 97, effective 16 October 2014.
taxable Australian property
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
taxable Australian property
"
inserted by
No 168 of 2006
, s 3 and Sch 4 item 15, applicable to CGT events that happen on or after 12 December 2006.
taxable income
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
taxable income
"
substituted by No 39 of 1997; No 98 of 1992 and No 172 of 1978.
taxable supply
has the meaning given by section 195-1 of the GST Act.
History
Definition of
"
taxable supply
"
inserted by No 176 of 1999.
tax cost is set
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
tax cost is set
"
inserted by No 117 of 2002.
tax loss
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
tax loss
"
inserted by No 39 of 1997.
tax offset refund
has the meaning given by the
Income Tax Assessment Act 1997
.
History
Definition of
"
tax offset refund
"
inserted by No 88 of 2013, s 3 and Sch 5 item 12, applicable to assessments made on or after 1 July 2013 for the 2013-14 income year or later income years.
taxpayer
means a person deriving income or deriving profits or gains of a capital nature.
History
Definition of
"
taxpayer
"
amended by No 52 of 1986.
"the Income Tax Ordinances of Papua New Guinea"
(Repealed by No 80 of 1975)
History
Definition of
"
the Income Tax Ordinances of Papua New Guinea
"
amended by No 164 of 1973.
this Act
includes:
(a)
the
Income Tax Assessment Act 1997
; and
(b)
Part
IVC
of the
Taxation Administration Act 1953
, so far as that Part relates to:
(i)
this Act or the
Income Tax Assessment Act 1997
; or
(ii)
Schedule
1
to the
Taxation Administration Act 1953
; and
(c)
Schedule
1
to the
Taxation Administration Act 1953
.
Note:
Subsection (1AA) of this section prevents definitions in the
Income Tax Assessment Act 1936
from affecting the interpretation of the
Income Tax Assessment Act 1997
.
History
Definition of
"
this Act
"
amended by No 179 of 1999 and No 178 of 1999.
Definition of
"
this Act
"
substituted and Note inserted by No 39 of 1997.
Definition of
"
this Act
"
inserted by No 216 of 1991.
"Timor Gap treaty"
(Repealed by No 10 of 2003)
History
Definition of
"
Timor Gap treaty
"
amended by No 25 of 2000 and inserted by No 100 of 1991.
Timor Sea Treaty
(Repealed by No 59 of 2019)
History
Definition of
"
Timor Sea Treaty
"
repealed by No 59 of 2019, s 3 and Sch 2 item 4, effective 30 August 2019. The definition formerly read:
Timor Sea Treaty
means the Treaty defined by subsection 5(1) of the
Petroleum (Timor Sea Treaty) Act 2003
.
Definition of
"
Timor Sea Treaty
"
inserted by No 10 of 2003.
total net investment loss
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
total net investment loss
"
inserted by No 27 of 2009, s 3 and Sch 3 item 5, applicable in relation to income years starting on or after 1 July 2009.
Trade Department
(Repealed by No 110 of 2014)
History
Definition of
"
Trade Department
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(k), effective 16 October 2014. The definition formerly read:
Trade Department
means the Department that:
(a)
deals with matters arising under section 1 of the
Export Market Development Grants Act 1997
; and
(b)
is administered by the Trade Minister.
Definition of
"
Trade Department
"
inserted by No 88 of 2009, s 3 and Sch 5 item 45, effective 18 September 2009.
Trade Minister
(Repealed by No 110 of 2014)
History
Definition of
"
Trade Minister
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(l), effective 16 October 2014. The definition formerly read:
Trade Minister
means the Minister administering section 1 of the
Export Market Development Grants Act 1997
.
Definition of
"
Trade Minister
"
inserted by No 88 of 2009, s 3 and Sch 5 item 46, effective 18 September 2009.
Trade Secretary
(Repealed by No 110 of 2014)
History
Definition of
"
Trade Secretary
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(m), effective 16 October 2014. The definition formerly read:
Trade Secretary
means the Secretary of the Trade Department.
Definition of
"
Trade Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 47, effective 18 September 2009.
trading stock
has the meaning given by section
70-10
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
trading stock
"
substituted by No 121 of 1997.
Tribunal
means the Administrative Review Tribunal.
History
Definition of
"
Tribunal
"
amended by No 38 of 2024, s 3 and Sch 1 item 63, by substituting
"
Administrative Review Tribunal
"
for
"
Administrative Appeals Tribunal
"
, effective 14 October 2024.
Definition of
"
Tribunal
"
inserted by No 48 of 1986.
trustee
in addition to every person appointed or constituted trustee by act of parties, by order, or declaration of a court, or by operation of law, includes:
(a)
an executor or administrator, guardian, committee, receiver, or liquidator; and
(b)
every person having or taking upon himself the administration or control of income affected by any express or implied trust, or acting in any fiduciary capacity, or having the possession, control or management of the income of a person under any legal or other disability.
unfranked part
of a distribution has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
unfranked part
"
inserted by No 16 of 2003.
value of the outstanding claims liability
(Repealed by
No 79 of 2010
)
History
Definition of
"
value of the outstanding claims liability
"
repealed by
No 79 of 2010
, s 3 and Sch 5 item 4, applicable to the first income year starting on or after 1 July 2010 and later income years. The definition formerly read:
value of the outstanding claims liability
of a general insurance company under general insurance policies has the meaning given by section 321-20 in Schedule 2J.
Definition of
"
value of the outstanding claims liability
"
inserted by No 97 of 2002.
value of the unearned premium reserve
(Repealed by
No 79 of 2010
)
History
Definition of
"
value of the unearned premium reserve
"
repealed by
No 79 of 2010
, s 3 and Sch 5 item 5, applicable to the first income year starting on or after 1 July 2010 and later income years. The definition formerly read:
value of the unearned premium reserve
of a general insurance company under general insurance policies has the meaning given by section
321-60
in Schedule
2J
.
Definition of
"
value of the unearned premium reserve
"
inserted by No 97 of 2002.
VCLP
means a venture capital limited partnership within the meaning of subsection
118-405(2)
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
VCLP
"
inserted by No 136 of 2002.
VCMP
means a venture capital management partnership.
History
Definition of
"
VCMP
"
inserted by No 136 of 2002.
venture capital deficit tax
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
venture capital deficit tax
"
inserted by No 23 of 2005.
venture capital management partnership
has the meaning given by subsection
94D(3)
.
History
Definition of
"
venture capital management partnership
"
inserted by No 136 of 2002.
Veterans
'
Affairs Department
(Repealed by No 110 of 2014)
History
Definition of
"
Veterans
'
Affairs Department
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(n), effective 16 October 2014. The definition formerly read:
Veterans
'
Affairs Department
means the Department that:
(a)
deals with matters arising under section 1 of the
Veterans
'
Entitlements Act 1986
; and
(b)
is administered by the Veterans
'
Affairs Minister.
Definition of
"
Veterans
'
Affairs Department
"
inserted by No 88 of 2009, s 3 and Sch 5 item 48, effective 18 September 2009.
Veterans
'
Affairs Minister
(Repealed by No 110 of 2014)
History
Definition of
"
Veterans
'
Affairs Minister
"
repealed by No 110 of 2014, s 3 and Sch 5 item 9(o), effective 16 October 2014. The definition formerly read:
Veterans
'
Affairs Minister
means the Minister administering section 1 of the
Veterans
'
Entitlements Act 1986
.
Definition of
"
Veterans
'
Affairs Minister
"
inserted by No 88 of 2009, s 3 and Sch 5 item 49, effective 18 September 2009.
Veterans
'
Affairs Secretary
means the Secretary of the Department administered by the Minister administering the
Veterans
'
Entitlements Act 1986
.
History
Definition of
"
Veterans
'
Affairs Secretary
"
substituted by No 110 of 2014, s 3 and Sch 5 item 10, effective 16 October 2014. The definition formerly read:
Veterans
'
Affairs Secretary
means the Secretary of the Veterans
'
Affairs Department.
Definition of
"
Veterans
'
Affairs Secretary
"
inserted by No 88 of 2009, s 3 and Sch 5 item 50, effective 18 September 2009.
withholding tax
has the same meaning as in the
Income Tax Assessment Act 1997
.
History
Definition of
"
withholding tax
"
substituted by No 15 of 2007, s 3 and Sch 1 item 36, applicable to the 2007-2008 income year and later years. The definition formerly read:
withholding tax
means income tax payable in accordance with section
27GA
or
128B
.
Definition of
"
withholding tax
"
amended by No 15 of 2002; No 51 of 1973 and inserted by No 85 of 1967.
work and income support related withholding payments and benefits
means:
(a)
payments from which an amount:
(i)
must be withheld under a provision of Subdivision 12-B (other than section
12-55
), 12-C or 12-D or Division 13 in Schedule 1 to the
Taxation Administration Act 1953
(even if the amount is not withheld); or
(ii)
would be required to be withheld under a provision mentioned in subparagraph (i) (other than section
12-55
) apart from subsection
12-1(1A)
in Schedule
1
to that Act; and
(b)
amounts included in a person
'
s assessable income under section
86-15
of the
Income Tax Assessment Act 1997
in respect of which an amount must be paid under Division
13
in Schedule
1
to the
Taxation Administration Act 1953
(even if the amount is not paid); and
(c)
non-cash benefits in relation to which the provider of the benefit must pay an amount to the Commissioner under Division
14
in Schedule
1
to the
Taxation Administration Act 1953
(even if the amount is not paid).
Note:
The payments covered by paragraph (a) are: payments to employees and company directors, payments to office holders, return to work payments, payments under labour hire arrangements, payments of annuities, superannuation benefits, payments for termination of employment, payments for unused leave, benefit payments, compensation payments and payments specified by regulations.
History
Definition of
"
work and income support related withholding payments and benefits
"
amended by No 56 of 2010, s 3 and Sch 6 item 55, by substituting
"
payments for termination of employment,
"
for
"
employment termination payments,
"
in the note, effective 3 June 2010.
Definition of
"
work and income support related withholding payments and benefits
"
amended by No 15 of 2007, s 3 and Sch 3 items 6 and 7, by substituting para (a) and substituting
"
annuities, superannuation benefits, employment termination payments
"
for
"
pensions and annuities, eligible termination payments
"
in the note, effective 15 March 2007. Para (a) formerly read:
(a)
payments from which an amount must be withheld under a provision of Subdivision
12-B
(other than section
12-55
),
12-C
or
12-D
in Schedule
1
to the
Taxation Administration Act 1953
(even if the amount is not withheld); and
Definition of
"
work and income support related withholding payments and benefits
"
inserted by No 101 of 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive.
year of income
means an income year as defined in subsection
995-1(1)
of the
Income Tax Assessment Act 1997
.
year of tax
means the financial year for which income tax is levied.
6(1A)
Unless the contrary intention appears, a reference in this Act to a failure to do an act or thing includes a reference to a refusal to do the act or thing.
History
S 6(1A) inserted by No 123 of 1984.
History
Archived:
The following definitions in s 6(1) have been repealed as inoperative by
No 101 of 2006
, s 3 and Sch 1 items 6 to 31, effective 14 September 2006. For
application and savings provisions
and for former wording see the
CCH Australian Income Tax Legislation archive
: adopted child, assessable income from petroleum, Commonwealth country, Commonwealth labour market program, electronic signature, exempt income from petroleum, failure to notify penalty, firearms surrender arrangements, fishing operations, forest operations, horticulture, income from petroleum, income tax laws of Papua New Guinea, late reconciliation statement penalty, Papua New Guinea, Papua New Guinea independence day, pearling operations, petroleum, petroleum prospecting or mining information, petroleum prospecting or mining right, previous Act, primary production, public securities, reportable fringe benefits amount, shares, tainting amount.
History
Archived:
The following definitions in s 6(1) have been substituted by
No 101 of 2006
, s 3 and Sch 2 items 118, 119, 121 to 124, 127, 129, 132 to 134, 136, 138 and 140, effective 14 September 2006. For
application and savings provisions
and for former wording see the
CCH Australian Income Tax Legislation archive
: apportionable deductions, assessable income, business, child, Commonwealth education or training payment, company, friendly society, general partner, minerals, natural resource, paid-up share capital, relative, spouse, year of income.
History
Archived:
S 6(1B) repealed as inoperative by
No 101 of 2006
, s 3 and Sch 1 item 32, effective 14 September 2006. For
application and savings provisions
and for former wording see the
CCH Australian Income Tax Legislation archive
.
6(2)
(Repealed by
No 97 of 2008
)
History
S 6(2) repealed by
No 97 of 2008
, s 3 and Sch 3 item 5, effective 3 October 2008. S 6(2) formerly read:
6(2)
Unless the contrary intention appears, any reference in this Act (including subsection (2A) of this section) to a year of income commencing or ending on a specified date shall be deemed to include, in relation to a taxpayer who has adopted, or who is deemed to have adopted, under this Act, an accounting period in lieu of that year of income, a reference to:
(a)
the adopted accounting period; or
(b)
if the adopted accounting period ends under section
18A
:
(i)
in relation to the commencing of the year of income
-
the adopted accounting period (as ending under that section); or
(ii)
in relation to the ending of the year of income
-
the accounting period ending under that section on the day on which the adopted accounting period would (but for that section) have ended.
S 6(2) amended by No 136 of 2002, No 4 of 1991 and inserted by No 6 of 1946.
6(2AA)
A reference in this Act to an accounting period adopted in lieu of a year of income includes a reference to an accounting period:
(a)
that commences or ends under section
18A
; and
(b)
that would, but for that section, form part of an accounting period so adopted.
History
S 6(2AA) amended by
No 97 of 2008
, s 3 and Sch 3 item 6, by omitting
"
(other than subsection (2) of this section)
"
after
"
A reference in this Act
"
, effective 3 October 2008.
S 6(2AA) inserted by No 136 of 2002.
6(2AB)
The Commissioner may, by legislative instrument, make a determination modifying the operation of one or more provisions of this Act in relation to limited partnerships whose accounting periods commence or end under section
18A
of the
Income Tax Assessment Act 1936
.
History
S 6(2AB) amended by
No 58 of 2006
, s 3 and Sch 7 item 241, by inserting
"
, by legislative instrument,
"
after
"
The Commissioner
"
, effective 22 June 2006.
S 6(2AB) inserted by No 136 of 2002.
6(2AC)
A determination can only be made under subsection (2AB) in order to take account of the fact that such accounting periods are of less than 12 months
'
duration.
History
S 6(2AC) inserted by No 136 of 2002.
6(2AD)
(Repealed by
No 58 of 2006
)
History
S 6(2AD) repealed by
No 58 of 2006
, s 3 and Sch 7 item 242, effective 22 June 2006. S 6(2AD) formerly read:
6(2AD)
A determination under subsection (2AB) is a disallowable instrument for the purposes of section
46A
of the
Acts Interpretation Act 1901
.
S 6(2AD) inserted by No 136 of 2002.
6(2A)
(Repealed by
No 97 of 2008
)
History
S 6(2A) repealed by
No 97 of 2008
, s 3 and Sch 3 item 7, effective 3 October 2008. S 6(2A) formerly read:
6(2A)
A reference in this Act to a year of income preceded by a figure referring to 2 years is a reference to the year of income commencing on 1 July in the first of those years (for example,
1990-91 year of income
refers to the year of income commencing on 1 July 1990).
S 6(2A) inserted by No 4 of 1991.
6(3)
The express references in this Act to companies do not imply that references to persons do not include references to companies.
History
S 6(3) amended by No 164 of 1973.
6(4)
Paragraph (d) of the definition of
dividend
in subsection (1) does not apply if, under an arrangement:
(a)
a person pays or credits any money or gives property to the company and the company credits its share capital account with the amount of the money or the value of the property; and
(b)
the company pays or credits any money, or distributes property to another person, and debits its share capital account with the amount of the money or the value of the property so paid, credited or distributed.
History
S 6(4) substituted by No 63 of 1998; amended by No 108 of 1981; No 51 of 1973 and inserted by No 85 of 1967.
6(5)
(Repealed by No 63 of 1998)
History
S 6(5) amended by No 108 of 1981 and inserted by No 85 of 1967.
6(6)
Where a place is, by virtue of paragraph (d) of the definition of
permanent establishment
in subsection (1), a permanent establishment of a person, the person shall, for the purposes of this Act, be deemed to be carrying on at or through that permanent establishment the business of selling the goods manufactured, assembled, processed, packed or distributed by the other person at the place that is that permanent establishment.
History
S 6(6) amended by No 51 of 1973 and inserted by No 4 of 1968.
History
Archived:
S 6(7) to (8) repealed as inoperative by
No 101 of 2006
, s 3 and Sch 1 item 33, effective 14 September 2006. For
application and savings provisions
and for former wording see the
CCH Australian Income Tax Legislation archive
.
FORMER SECTION 6AA
6AA
CERTAIN SEA INSTALLATIONS AND OFFSHORE AREAS TO BE TREATED AS PART OF AUSTRALIA
(Repealed by No 2 of 2015)
History
S 6AA(1) amended by No 41 of 2011, s 3 and Sch 5 items 65 to 67, by inserting
"
and
"
at the end of para (d), substituting
"
Australia.
"
for
"
Australia; and
"
in para (e) and repealing para (f), effective 27 June 2011. Para (f) formerly read:
(f)
the Papua New Guinea offshore area were, and at all times had been, a part of Papua New Guinea.
S 6AA(1) amended by No 17 of 2006,
No 101 of 2006
; substituted by No 11 of 1988; amended by No 80 of 1975 and No 126 of 1974.
FORMER SECTION 6A
6A
PROVISIONS RELATING TO CESSATION OF SUPERANNUATION BENEFITS
(Repealed by No 49 of 2019)
History
S 6A repealed by No 49 of 2019, s 3 and Sch 4 item 67, effective 1 July 2019. S 6A formerly read:
SECTION 6A PROVISIONS RELATING TO CESSATION OF SUPERANNUATION BENEFITS
6A(1)
For the purposes of this Act:
(a)
a right of a person or of the person
'
s dependants to receive superannuation benefits from a fund shall be deemed to have ceased at a particular time (whether before or after the commencement of this section) if, by virtue of the terms and conditions applicable to the fund at that time, a right (including a contingent right) of the person, or of the person
'
s dependants, as the case may be, to an amount that has accrued or could accrue from the fund ceased at that time otherwise than by payment of that amount to, or for the benefit of, the person or the person
'
s dependants or by the transfer of that amount to another fund in which, as a result of the transfer, the person acquires, or the person
'
s dependants acquire, as the case may be, a fully-secured right (including a contingent right) to receive superannuation benefits, being a right that is not less valuable than the first-mentioned right; and
(b)
where a right of a person or of the person
'
s dependants to receive superannuation benefits from a fund has ceased at any time (whether before or after the commencement of this section)
-
the amount of those benefits shall be deemed to have been so much of the amount that was included in the fund at that time for the purpose of making provision for superannuation benefits for the person or the person
'
s dependants as was not required for the purpose of providing for the person or the person
'
s dependants superannuation benefits (including benefits payable at that time) the right to receive which had not ceased at or before that time.
6A(2)
For the purposes of this Act, where a right of a person or of the person
'
s dependants to receive superannuation benefits from a fund has ceased at any time (whether before or after the commencement of this section) and, at that time, a specific part of the amount of the fund was not appropriated for the purpose of making provision for superannuation benefits for the person or the person
'
s dependants:
(a)
an amount determined by the Commissioner shall be deemed to have been included in the fund at that time for that purpose;
(b)
any payment made out of the fund at that time or at a later time to the person or the person
'
s dependants shall be deemed to have been an application at the time at which, and for the purpose for which, the payment was made of so much of the amount determined by the Commissioner in pursuance of paragraph (a) as is equal to the amount of the payment; and
(c)
except to the extent to which the amount determined by the Commissioner in pursuance of paragraph (a) is to be so deemed to have been applied by a payment out of the fund, that amount shall be deemed to have been applied in the year of income of the fund in which the right ceased, to such extent, if any, as the Commissioner determines, for the purpose of making provision for the superannuation benefits that other persons or their dependants had rights to receive from the fund.
S 6A amended by No 41 of 2011, s 3 and Sch 5 Pt 27, by removing gender-specific language, effective 27 June 2011.
S 6A amended by No 108 of 1981 and No 51 of 1973 and inserted by No 103 of 1965.
SECTION 6AB
FOREIGN INCOME AND FOREIGN TAX
6AB(1)
[Foreign income]
A reference in this Act to foreign income is a reference to income (including superannuation lump sums and employment termination payments) derived from sources in a foreign country or foreign countries, and includes a reference to an amount included in assessable income under section
102AAZD
,
456
,
457
or
459A
of this Act, or section
305-70
of the
Income Tax Assessment Act 1997
.
History
S 6AB(1) amended by No 114 of 2010, s 3 and Sch 1 item 6, by substituting
"
or 459A
"
for
"
, 459A or 529
"
, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income.
S 6AB(1) amended by
No 143 of 2007
, s 3 and Sch 1 item 21, by omitting
"
26D,
"
after
"
under section
"
, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
.
S 6AB(1) amended by No 15 of 2007, s 3 and Sch 1 items 37 and 38, by substituting
"
superannuation lump sums and employment termination payments
"
for
"
eligible termination payments as defined in subsection 27A(1)
"
and substituting
"
section 26D, 102AAZD, 456, 457, 459A or 529 of this Act, or section 305-70 of the
Income Tax Assessment Act 1997
"
for
"
section 26D, 27CAA, 102AAZD, 456, 457, 459A or 529
"
, applicable to the 2007-2008 income year and later years.
S 6AB(1) amended by No 96 of 2004, No 181 of 1994, No 190 of 1992, No 48 of 1991 and No 5 of 1991.
6AB(1A)
(Repealed by
No 143 of 2007
)
History
S 6AB(1A) repealed by
No 143 of 2007
, s 3 and Sch 1 item 22, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
. S 6AB(1A) formerly read:
6AB(1A)
A reference in this Act to foreign income includes a reference to an amount worked out under section
295-325
of the
Income Tax Assessment Act 1997
.
S 6AB(1A) amended by No 15 of 2007, s 3 and Sch 1 item 39, by substituting
"
an amount worked out under section 295-325 of the
Income Tax Assessment Act 1997
"
for
"
net previous income referred to in subsection 288A(2)
"
, applicable to the 2007-2008 income year and later years.
S 6AB(1A) inserted by No 181 of 1994.
6AB(1B)
(Repealed by
No 143 of 2007
)
History
S 6AB(1B) repealed by
No 143 of 2007
, s 3 and Sch 1 item 22, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s559A
. S 6AB(1B) formerly read:
6AB(1B)
A reference in this Act to foreign income includes a reference to an amount worked out under section
295-330
of the
Income Tax Assessment Act 1997
.
S 6AB(1B) amended by No 15 of 2007, s 3 and Sch 1 item 40, by substituting
"
an amount worked out under section 295-330 of the
Income Tax Assessment Act 1997
"
for
"
net previous income referred to in subsection 288B(2)
"
, applicable to the 2007-2008 income year and later years.
S 6AB(1B) inserted by No 181 of 1994.
6AB(1C)
[
Superannuation benefits]
A reference in this Act to foreign income includes a reference to an amount included in assessable income under:
(a)
Division
301
of the
Income Tax Assessment Act 1997
in its application under section
301-5
of the
Income Tax (Transitional Provisions) Act 1997
; or
(b)
Division
302
of the
Income Tax Assessment Act 1997
in its application under section
302-5
of the
Income Tax (Transitional Provisions) Act 1997
.
History
S 6AB(1C) inserted by No 15 of 2007, s 3 and Sch 1 item 41, applicable to the 2007-2008 income year and later years.
6AB(2)
A reference in this Act to foreign tax is a reference to tax imposed by a law of a foreign country, being:
(a)
tax upon income; or
(b)
tax upon profits or gains, whether of an income or capital nature; or
(c)
any other tax, being a tax that is subject to an agreement having the force of law under the
International Tax Agreements Act 1953
;
but does not include a unitary tax or a credit absorption tax.
History
S 6AB(2) substituted by
No 143 of 2007
, s 3 and Sch 1 item 23, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
. S 6AB(2) formerly read:
6AB(2)
A reference in this Act to foreign tax is a reference to:
(a)
tax imposed by a law of a foreign country, being:
(i)
tax upon income; or
(ii)
tax upon profits or gains, whether of an income or capital nature; or
(iii)
(Repealed by No 96 of 2004)
(iv)
any other tax, being a tax that is subject to an agreement having the force of law under the
International Tax Agreements Act 1953
;
but does not include a unitary tax or a credit absorption tax; or
(b)
any of the following:
(i)
tax that is taken, because of section
160AFCA
or
160AFCK
, to have been paid in respect of an amount included in assessable income under section
456
;
(ii)
tax that is taken, because of section
160AFCB
, to have been paid in respect of an amount included in assessable income under section
457
;
(iii)
(Repealed by No 96 of 2004)
(iv)
tax that is taken, because of section
160AFCD
, to have been paid in respect of the section
23AI
non-assessable part of an attribution account payment (within the meaning of section
160AFCD
);
(v)
tax that is taken, because of section
160AFCE
,
160AFCF
,
160AFCG
or
160AFCH
, to have been paid in respect of an amount included in assessable income under section
529
;
(vi)
tax that is taken, because of section
160AFCJ
, to have been paid in respect of the section
23AK
non-assessable part of a FIF attribution account payment (within the meaning of section
160AFCJ
).
S 6AB(2) amended by No 96 of 2004, No 66 of 2003, No 22 of 1995, No 190 of 1992 and substituted by No 5 of 1991.
Former s 6AB(2) amended by No 78 of 1988.
6AB(3)
(Repealed by
No 143 of 2007
)
History
S 6AB(3) repealed by
No 143 of 2007
, s 3 and Sch 1 item 24, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
. S 6AB(3) formerly read:
6AB(3)
Where a taxpayer has derived an amount of foreign income and:
(a)
foreign tax has been paid in respect of that income:
(i)
by or through another person under an arrangement with the taxpayer or under the law relating to that tax;
(ii)
by a trust estate in which the taxpayer is a beneficiary;
(iii)
by a partnership in which the taxpayer is a partner; or
(iv)
by deduction; or
(b)
foreign tax in respect of that income is levied on, and paid by, the taxpayer's spouse;
the taxpayer shall be deemed, for the purposes of this Act, to have been personally liable for, and to have paid, that foreign tax in respect of that income.
6AB(3A)
(Repealed by
No 143 of 2007
)
History
S 6AB(3A) repealed by
No 143 of 2007
, s 3 and Sch 1 item 24, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
. S 6AB(3A) formerly read:
6AB(3A)
Except as provided by section
160AFCA
,
160AFCB
,
160AFCD
,
160AFCE
,
160AFCF
,
160AFCG
,
160AFCH
,
160AFCJ
or
160AFCK
, a taxpayer is not taken to have been personally liable for, and to have paid, foreign tax in respect of:
(a)
an amount included in assessable income under section
102AAZD
,
456
,
457
,
459A
or
529
; or
(b)
the section
23AI
non-assessable part of an attribution account payment (within the meaning of section
160AFCD
); or
(c)
the section
23AK
non-assessable part of a FIF attribution account payment (within the meaning of section
160AFCJ
).
S 6AB(3A) amended by No 96 of 2004, No 66 of 2003, No 190 of 1992, No 48 of 1991, and inserted by No 5 of 1991.
6AB(4)
(Repealed by
No 143 of 2007
)
History
S 6AB(4) repealed by
No 143 of 2007
, s 3 and Sch 1 item 24, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
. S 6AB(4) formerly read:
6AB(4)
Where:
(a)
a taxpayer has, as a beneficiary in a trust estate or by virtue of any other beneficial interest, derived an amount of foreign income (in this subsection referred to as the
derived amount
) attributable to another amount of foreign income (in this subsection referred to as the
primary amount
);
(b)
in respect of the primary amount, foreign tax has been paid by any person (directly or by deduction); and
(c)
because of the payment of that tax, the derived amount is less than the amount that would otherwise have been the derived amount;
the taxpayer shall be deemed, for the purposes of this Act, to have been personally liable for, and to have paid, in respect of the derived amount, an amount of foreign tax equal to the difference between the amounts referred to in paragraph (c).
6AB(5)
(Repealed by
No 143 of 2007
)
History
S 6AB(5) repealed by
No 143 of 2007
, s 3 and Sch 1 item 24, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
. S 6AB(5) formerly read:
6AB(5)
Where, under regulations made by virtue of section
160AFF
, or under an agreement having the force of law under the
International Tax Agreements Act 1953
, an amount of foreign tax not actually paid is deemed to have been paid, that amount shall, for the purposes of this Act, be deemed to have been paid.
S 6AB(5) amended by No 22 of 1995.
6AB(5A)
(Repealed by
No 143 of 2007
)
History
S 6AB(5A) repealed by
No 143 of 2007
, s 3 and Sch 1 item 24, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
. S 6AB(5A) formerly read:
6AB(5A)
In spite of anything in this section, a taxpayer is taken, for the purposes of this Act, not to have been personally liable for, or to have paid, foreign tax if:
(a)
a refund of the foreign tax becomes liable to be made to the taxpayer or any other person; or
(b)
any other benefit becomes liable to be provided to the taxpayer or any other person, where:
(i)
the amount of the benefit is worked out by reference to the amount of the foreign tax paid by the taxpayer alone; and
(ii)
the benefit does not consist of a reduction in foreign tax payable by the taxpayer or the other person.
S 6AB(5A) inserted by No 170 of 1995.
6AB(5B)
[Application of section]
This section applies to a non-share dividend in the same way as it applies to a dividend.
History
S 6AB(5B) inserted by No 163 of 2001.
Act No 163 of 2001 (as amended by No 162 of 2005, s 3 and Sch 6 items 26 and 27), contained the following application provisions:
(1)
Definitions.
In this item:
CGT amendments
means the amendments made by items 7 to 32 of this Schedule.
debt and equity test amendments
means the amendments made by this Schedule (other than the CGT amendments).
(2)
Application of debt and equity test amendments.
The debt and equity test amendments apply to transactions that take place on or after 1 July 2001. This is so whether the interest in relation to which the transaction takes place was issued before, or is issued on or after, that date. This subitem has effect subject to subitem (6).
History
Subitem 118(2) amended by No 162 of 2005, s 3 and Sch 6 item 26, by omitting
"
any election made under
"
before
"
subitem (6)
"
, effective 1 July 2001.
(3)
Application of the CGT amendments.
The amendments made by items 7 to 11 of this Schedule apply to:
(a)
equity interests issued or allotted; and
(b)
options granted;
on or after 1 July 2001.
(4)
The amendments made by items 12 to 32 of this Schedule apply to the conversion of a convertible interest, or the exercise of a right, on or after 1 July 2001.
(5)
Section
130-40
of the
Income Tax Assessment Act 1997
applies to all convertible notes acquired before 20 September 1985 as if they were convertible interests.
(6)
Application of debt and equity test amendments to interests issued before 1 July 2001.
If an interest was issued before 1 July 2001, the debt and equity test amendments:
(a)
apply only to transactions that take place in relation to the interest on or after 1 July 2004 if the issuer of the interest does not make an election under paragraph (b); and
(b)
apply to transactions that take place in relation to the interest on or after 1 July 2001 if the issuer elects to have this paragraph apply to the interest.
(7)
For the purposes of subitem (6), an interest is taken to be issued on or after 1 July 2001 if:
(a)
the interest is issued on or after that date; or
(b)
the interest is issued before that date; and:
(i)
the terms of the interest are altered on or after that date; or
(ii)
the interest is rolled over on or after that date; or
(iii)
the original term of the interest is extended on or after that date.
In applying subparagraph (b)(i), disregard minor alterations that do not affect rights and obligations in relation to the interest.
(9)
If paragraph (6)(a) applies to an interest:
(a)
paragraph
164-10(1)(b)
of the
Income Tax Assessment Act 1997
applies to the interest as if the second reference in that paragraph to
"
1 July 2001
"
were instead a reference to
"
1 July 2004
"
; and
(b)
section
164-15
of the
Income Tax Assessment Act 1997
applies to the interest as if the following references were instead references to ``1 July 2004'':
(i)
the first reference in subsection
164-15(3)
to ``1 July 2001'';
(ii)
the reference in subsection
164-15(3)
to ``that day'';
(iii)
the references in paragraph
164-15(3)(b)
and subsection
164-15(4)
to ``1 July 2001''.
History
Subitem 118(9) substituted by No 162 of 2005, s 3 and Sch 6 item 27, effective 1 July 2001. Subitem 118(9) formerly read:
(9)
If paragraph (6)(a) applies to an interest:
(a)
the interest is disregarded for the purposes of paragraph
164-10(1)(b)
and subsection
164-15(3)
of the
Income Tax Assessment Act 1997
; and
(b)
section
164-15
of the
Income Tax Assessment Act 1997
applies to the interest as if references in paragraph
164-15(3)(b)
and subsection
164-15(4)
to 1 July 2001 were references to 1 July 2004.
(10)
An election in relation to an interest is effective for the purposes of paragraph (6)(b) only if:
(a)
the election is lodged with the Commissioner within:
(i)
90 days after the day on which this Act receives the Royal Assent; or
(ii)
such further time as the Commissioner allows; and
(b)
an election under subitem (6) is made in relation to all other interests that:
(i)
were issued by the issuer before 1 July 2001; and
(ii)
are substantially similar to that interest and in relation to which an election under that subitem can be made; and
(c)
the election contains the following information:
(i)
the name of the issuer;
(ii)
the tax file number of the issuer;
(iii)
the legal form of the interest;
(iv)
ASX code or other stock exchange listing code allotted to the issue (if applicable);
(v)
the date of the issue;
(vi)
the face value of the issue;
(vii)
the number of interests of that kind on issue when the election is made;
(viii)
coupon/dividend rates and terms including contingencies;
(ix)
maturity details;
(x)
redemption details and terms including contingencies;
(xi)
conversion/exercise details.
An election under paragraph (6)(b) cannot be revoked.
(11)
The Commissioner may allow further time under subparagraph (10)(a)(ii) if he or she:
(a)
is satisfied that the issuer would otherwise not have sufficient opportunity to make the election; or
(b)
otherwise considers it reasonable to do so.
(12)
If:
(a)
paragraph (6)(a) applies to an interest; and
(b)
on or after 1 July 2001 and before 1 July 2004:
(i)
the terms of the interest are altered; or
(ii)
the interest is rolled over; or
(iii)
the original term of the interest is extended;
then:
(c)
the debt and equity test amendments apply to the transactions in relation to the interest that take place after the event referred to in paragraph (b) occurs; and
(d)
subitem (9) applies to the interest as if references in that subitem to 1 July 2004 were references to the time when that event occurs.
In applying subparagraph (b)(i), disregard minor alterations that do not affect rights and obligations in relation to the interest.
(13)
A reference in this item to a
transaction
includes a reference to:
(a)
making a return; and
(b)
paying a dividend or unit trust dividend; and
(c)
making a distribution in relation to a unit trust; and
(d)
paying, crediting or lending an amount; and
(e)
making a non-share distribution; and
(f)
forgiving a debt; and
(g)
redeeming, cancelling or buying back an interest; and
(h)
converting an interest.
6AB(6)
[Definitions]
In this section:
credit absorption tax
means a tax imposed by a law of a foreign country to the extent that the tax would not have been payable if the taxpayer concerned or another taxpayer had not been entitled to an offset in respect of the tax under Division
770
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
credit absorption tax
"
amended by
No 143 of 2007
, s 3 and Sch 1 item 25, by substituting
"
an offset in respect of the tax under Division 770 of the
Income Tax Assessment Act 1997
"
for
"
a credit in respect of the tax under Division 18 of Part III
"
, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
.
Definition of
"
credit absorption tax
"
inserted by No 78 of 1988.
law
, in relation to a foreign country, means a law of that country, or of any part of, or place in, that country.
unitary tax
means tax imposed by a law of a foreign country, being a law which, for the purposes of taxing income, profits or gains of a company derived from sources within that country, takes into account, or is entitled to take into account, income, losses, outgoings or assets of the company (or of a company that for the purposes of that law is treated as being associated with the company) derived, incurred or situated outside that country, but does not include tax imposed by that law if that law only takes those matters into account:
(a)
if such an associated company is a resident for the purposes of that law; or
(b)
for the purposes of granting any form of relief in relation to tax imposed on dividends received by one company from another company.
History
S 6AB inserted by No 51 of 1986.
FORMER SECTION 6AC
6AC
GROSSING-UP OF FOREIGN INCOME
(Repealed by
No 143 of 2007
)
History
S 6AC repealed by
No 143 of 2007
, s 3 and Sch 1 item 26, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
. S 6AC formerly read:
SECTION 6AC GROSSING-UP OF FOREIGN INCOME
6AC(1)
Where a resident taxpayer has derived an amount of foreign income and has paid an amount of foreign tax in respect of that income, the amount of foreign income shall, for the purposes of this Act, be taken to be the amount of that income before payment of that tax.
6AC(2)
(Repealed by No 96 of 2004)
6AC(3)
Where a taxpayer is, because of section
160AFCA
or
160AFCK
, taken to have paid an amount of foreign tax in respect of an amount included in the assessable income of the taxpayer under section
456
(in this subsection called the
section 456 amount
), the section
456
amount is taken, for the purposes of this Act (other than sections
160AFCA
and
371
) to be increased by the amount of that tax.
History
S 6AC(3) amended by No 190 of 1992 and inserted by No 5 of 1991.
6AC(4)
Where a taxpayer is, because of section
160AFCB
, taken to have paid an amount of foreign tax in respect of an amount included in the assessable income of the taxpayer under section
457
(in this subsection called the
section 457 amount
), the section
457
amount is taken, for the purposes of this Act (other than sections
160AFCB
and
371
) to be increased by the amount of that tax.
History
S 6AC(4) inserted by No 5 of 1991.
6AC(5)
(Repealed by No 96 of 2004)
History
S 6AC(5) inserted by No 5 of 1991.
6AC(6)
If a taxpayer is, because of section
160AFCE
,
160AFCF
,
160AFCG
or
160AFCH
, taken to have paid an amount of foreign tax in respect of an amount included in the assessable income of the taxpayer under section
529
(
the section
529
amount
), the section
529
amount is taken, for the purposes of this Act (other than sections
160AFCE
,
160AFCF
,
160AFCG
,
160AFCH
and
605
) to be increased by the amount of that tax.
History
S 6AC(6) inserted by No 190 of 1992.
6AC(7)
This section applies to a non-share dividend in the same way as it applies to a dividend.
History
S 6AC(7) inserted by No 163 of 2001. For application provisions, see note under s
6AB(5B)
.
S 6AC inserted by No 51 of 1986.
FORMER SECTION 6AD
6AD
SHORTER PERIOD OF REVIEW TAXPAYER
(Repealed by No 161 of 2005)
History
Former s 6AD amended by No 95 of 2004; No 169 of 1999; inserted by No 179 of 1999.
SECTION 6B
INCOME BENEFICIALLY DERIVED
6B(1)
[Income deemed to be attributable to dividends]
For the purposes of this Act, an amount of income derived by a person, not being a dividend paid by a company to the person as a shareholder in the company, shall be deemed to be attributable to a dividend:
(a)
if the person derived the amount of income by reason of being the beneficial owner of the share in respect of which the dividend was paid; or
(b)
if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to the dividend or to an amount that is deemed, by any application or successive applications of this subsection, to be an amount of income attributable to the dividend.
6B(1A)
[Income attributable to passive income]
For the purposes of this Act, an amount of income derived by a person, being income other than passive income, is to be taken to be income attributable to passive income:
(a)
if the person derived the amount of income by reason of being beneficially entitled to an amount representing passive income; or
(b)
if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to passive income or to an amount that is taken, by any application or successive applications of this subsection, to be an amount of income attributable to passive income.
History
S 6B(1A) inserted by No 5 of 1991.
6B(2)
[Income attributable to interest income]
For the purposes of this Act, an amount of income derived by a person, being income other than interest income, shall be deemed to be income attributable to interest income:
(a)
if the person derived the amount of income by reason of being beneficially entitled to an amount representing interest income; or
(b)
if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to interest income or to an amount that is deemed, by any application or successive applications of this subsection, to be an amount of income attributable to interest income.
History
S 6B(2) amended by No 51 of 1986; No 108 of 1981 and No 51 of 1973.
6B(2A)
[Income derived from particular source]
For the purposes of this Act, an amount of income derived by a person shall be deemed to be income derived from a particular source:
(a)
except where paragraph (b) applies:
(i)
if the person derived the amount of income by reason of being beneficially entitled to an amount that is derived from that source; or
(ii)
if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to income derived from that source or to an amount that is deemed, by any other application or applications of this subsection, to be an amount that is income derived from that source; or
(b)
if the income so derived is, by virtue of subsection (1), (1A) or (2), attributable to a dividend, passive income or interest income derived from that source.
History
S 6B(2A) amended by No 5 of 1991.
Former s 6B(2A) amended by No 51 of 1986.
6B(2AA)
(Repealed by
No 143 of 2007
)
History
S 6B(2AA) repealed by
No 143 of 2007
, s 3 and Sch 1 item 27, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
. S 6B(2AA) formerly read:
6B(2AA)
In subsections (1A) and (2A),
passive income
has the same meaning as in section
160AEA
.
S 6B(2AA) inserted by No 5 of 1991.
6B(2B)
(Repealed by
No 143 of 2007
)
History
S 6B(2B) repealed by
No 143 of 2007
, s 3 and Sch 1 item 27, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
. S 6B(2B) formerly read:
6B(2B)
In subsections (2) and (2A),
interest income
has the same meaning as in section
160AE
.
S 6B(2B) amended by No 51 of 1986.
6B(3)
[Presently entitled beneficiary]
Where a beneficiary in a trust estate is presently entitled to income of the trust estate, that income shall, for the purposes of this section, be deemed to be an amount of income derived by the person.
6B(4)
[Application]
This section:
(a)
applies to a non-share equity interest in the same way as it applies to a share; and
(b)
applies to an equity holder in the same way as it applies to a shareholder; and
(c)
applies to a non-share dividend in the same way as it applies to a dividend.
History
S 6B(4) inserted by No 163 of 2001.
S 6B inserted by No 85 of 1967.
SECTION 6BA
TAXATION TREATMENT OF CERTAIN SHARES
6BA(1)
This section applies if a shareholder holds shares in a company (the
original shares
) and the company issues other shares (the
bonus shares
) in respect of the original shares.
History
S 6BA(1) substituted by No 63 of 1998, amended by No 47 of 1984, No 108 of 1981 and No 146 of 1979.
6BA(1A)
(Repealed by No 63 of 1998)
History
S 6BA(1A) amended by No 146 of 1979.
6BA(2)
If the bonus shares are a dividend, or taken to be a dividend (including as a result of section
45C
), the consideration for the acquisition of the shares for the purposes of this Act is so much of the dividend as is:
(a)
included in the taxpayer
'
s assessable income; and
(b)
is not rebatable under section
46A
.
History
S 6BA(2) amended by
No 101 of 2006
, s 3 and Sch 2 item 147, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
S 6BA(2) amended by No 58 of 2000, substituted by No 63 of 1998 and amended by No 120 of 1995 and No 146 of 1979.
6BA(3)
If the bonus shares are issued for no consideration and are not a dividend or taken to be a dividend, then for the purposes of this Act, in determining:
(a)
the value of such of the original shares and bonus shares as the taxpayer elects under section
70-45
of the
Income Tax Assessment Act 1997
to value at cost; and
(b)
where any of the original shares or any of the bonus shares are not articles of trading stock of the taxpayer:
(i)
the amount or value of the consideration paid in respect of the acquisition of any of those shares for the purposes of Part
3-1
or
3-3
of the
Income Tax Assessment Act 1997
; or
(ii)
the amount of any profit or loss arising on the sale or disposal of any of those shares;
any amounts paid or payable by the taxpayer in respect of the original shares (whether on purchase of the shares, onapplication for or allotment of the shares, to meet calls or otherwise) shall be deemed to have been paid or to be payable by the taxpayer in respect of the original shares and the bonus shares in such proportions as the Commissioner considers appropriate in the circumstances.
History
S 6BA(3) amended by No 133 of 2009, s 3 and Sch 1 item 10, by omitting
"
(other than section
26AAC
"
after
"
purposes of this Act
"
, applicable in relation to the ESS interests mentioned in subsections
83A-5(1)
and
(2)
of the
Income Tax (Transitional Provisions) Act 1997
.
S 6BA(3) amended by
No 101 of 2006
, s 3 and Sch 4 item 1, by amending references to repealed inoperative provisions, effective 1 January 2008.
S 6BA(3) amended by
No 101 of 2006
, s 3 and Sch 2 item 148, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
S 6BA(3) amended by No 63 of 1998, No 121 of 1997, No 52 of 1986, No 108 of 1981 and No 146 of 1979.
6BA(4)
A company issues shares for no consideration if:
(a)
it credits its capital account with profits in connection with the issue of the shares; or
(b)
it credits its capital account with the amount of any dividend to a shareholder and the shareholder does not have a choice whether to be paid the dividend or to be issued with the shares.
This subsection does not limit the generality of subsection (3).
Note:
A company that makes a credit covered by paragraph (a) or (b) will have a tainted share capital account.
History
S 6BA(4) amended by No 58 of 2000; substituted by No 63 of 1998 and amended by No 146 of 1979.
6BA(4A)
(Repealed by No 63 of 1998)
History
S 6BA(4A) inserted by No 120 of 1995.
6BA(5)
Subject to subsection (6), if a shareholder has a choice whether to be paid a dividend or to be issued shares and the shareholder chooses to be issued with shares:
(a)
the dividend is taken to be credited to the shareholder; and
(b)
the dividend is taken to have been paid out of profits; and
(c)
subsections (2) and (3) apply in working out the consideration for the acquisition of the shares for the purposes of this Act.
However, the share capital account of the company does not become a tainted share capital account as a result of the crediting of the dividend to the share capital account.
History
S 6BA(5)(c) amended by No 101 of 2003 and No 58 of 2000.
S 6BA(5) substituted by No 63 of 1998 and inserted by No 146 of 1979.
6BA(6)
Subsection
(5)
does not apply if:
(a)
a shareholder in a listed public company has a choice whether to be paid a dividend (other than a minimally franked dividend within the meaning of subsection
45(3)
) or to be issued shares and the shareholder chooses to be issued with shares; and
(b)
the company does not credit the share capital account in connection with the issue of those shares.
Note:
If subsection
(5)
does not apply because of this subsection, subsection
(3)
will apply.
History
S 6BA(6) amended by No 101 of 2023, s 3 and Sch 4 item 11, by omitting
"
(within the meaning of the
Income Tax Assessment Act 1997
)
"
after
"
a listed public company
"
from para (a), effective 1 January 2024.
S 6BA(6) substituted by No 63 of 1998, amended by No 120 of 1995 and inserted by No 146 of 1979.
6BA(7)
This section (other than subsection (6)):
(a)
applies to a non-share equity interest in the same way as it applies to a share; and
(b)
applies to an equity holder in the same way as it applies to a shareholder; and
(c)
applies to a non-share dividend in the same way as it applies to a dividend.
History
S 6BA(7) inserted by No 163 of 2001.
S 6BA(7) repealed by No 63 of 1998, amended by No 120 of 1995 and inserted by No 146 of 1979.
6BA(8)
(Repealed by No 63 of 1998)
History
S 6BA(8) inserted by No 120 of 1995.
6BA(9)
(Repealed by No 63 of 1998)
History
S 6BA(9) inserted by No 120 of 1995.
S 6BA inserted by No 57 of 1978.
SECTION 6C
SOURCE OF ROYALTY INCOME DERIVED BY A NON-RESIDENT
6C(1)
This section applies to income that is derived on or after 1 July 1968 by a non-resident and consists of royalty that:
(a)
is paid or credited to the non-resident by the Commonwealth, by a State, by an authority of the Commonwealth or of a State or by a person who is, or by persons at least one of whom is, a resident and is not an outgoing wholly incurred by the Commonwealth, the State, the authority or that person or those persons in carrying on business in a country outside Australia at or through a permanent establishment of the Commonwealth, the State, the authority or that person or those persons in that country; or
(b)
is paid or credited to the non-resident by a person who is, or by persons each of whom is, a non-resident and is, or is in part, an outgoing incurred by that person or those persons in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia.
History
S 6C(1) amended by No 108 of 1981, No 57 of 1980, No 51 of 1973, and inserted by No 4 of 1968.
6C(1A)
For the purposes of Division
5
and Division
6
of Part
III
, but subject to subsections (3) and (4), income to which this section applies shall be deemed to be attributable to sources in Australia.
History
S 6C(1A) inserted by No 12 of 1979.
6C(2)
For the purposes of sections
6-5
and
6-10
of the
Income Tax Assessment Act 1997
, but subject to subsections (3) and (4), income to which this section applies shall be deemed to have been derived from a source in Australia.
History
S 6C(2) amended by
No 101 of 2006
, s 3 and Sch 2 item 149, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
S 6C(2) amended by No 39 of 1997, No 224 of 1992, No 108 of 1981, No 126 of 1977, No 143 of 1976, No 51 of 1973, and inserted by No 4 of 1968.
6C(3)
Where:
(a)
income to which this section applies is paid or credited to the non-resident by whom it is derived by the Commonwealth, by a State, by an authority of the Commonwealth or of a State or by a person who is, or by persons at least one of whom is, a resident; and
(b)
the royalty of which the income consists is, in part, an outgoing incurred by the Commonwealth, the State, the authority or that person or those persons in carrying on business in a country outside Australia at or through a permanent establishment of the Commonwealth, the State, the authority or that person or those persons in that country;
subsection (2) has effect in relation to so much only of the income as is attributable to so much of the royalty as is not an outgoing so incurred.
History
S 6C(3) amended by No 108 of 1981, No 57 of 1980 and inserted by No 4 of 1968.
6C(4)
Where:
(a)
income to which this section applies is paid or credited to the non-resident by whom it is derived by a person who, or by persons each of whom, is a non-resident; and
(b)
the royalty of which the income consists is, in part only, an outgoing incurred by the person or persons by whom it is paid or credited in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia;
subsection (2) has effect in relation to so much only of the income as is attributable to so much of the royalty as is an outgoing so incurred.
History
S 6C(4) amended by No 57 of 1980, No 51 of 1973, and inserted by No 4 of 1968.
6C(5)
In subsection (6), a reference to a relevant person is a reference to the Commonwealth, a State, an authority of the Commonwealth or of a State or a person who is, or persons at least 1 of whom is, a resident.
History
S 6C(5) amended by No 50 of 1976 and inserted by No 26 of 1974.
6C(6)
For the purposes of paragraphs (1)(a) and (3)(b), where:
(a)
royalty is paid or credited, after the commencement of this subsection, to a non-resident by a relevant person carrying on business in a country outside Australia; and
(b)
the royalty or a part of the royalty:
(i)
is incurred by the relevant person in gaining or producing income that is derived by the relevant person otherwise than in carrying on business in a country outside Australia at or through a permanent establishment of the relevant person in that country or is incurred by the relevant person for the purpose of gaining or producing income to be so derived; or
(ii)
is incurred by the relevant person in carrying on business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the relevant person otherwise than in so carrying on business at or through a permanent establishment of the relevant person in a country outside Australia;
the royalty or the part of the royalty, as the case may be, is not an outgoing incurred by the relevant person in carrying on business in a country outside Australia at or through a permanent establishment of the relevant person in that country.
History
S 6C(6) amended by No 108 of 1981, No 57 of 1980, and inserted by No 26 of 1974.
6C(7)
For the purposes of paragraphs (1)(b) and (4)(b), where:
(a)
royalty is paid or credited, after the commencement of this subsection, to a non-resident by another person or other persons (in this subsection referred to as
the payer
), being:
(i)
another person who is carrying on business in Australia and is a non-resident; or
(ii)
other persons who are carrying on business in Australia and each of whom is a non-resident; and
(b)
the royalty or a part of the royalty:
(i)
is incurred by the payer in gaining or producing income that is derived by the payer in carrying on business in Australia at or through a permanent establishment of the payer in Australia or is incurred by the payer for the purpose of gaining or producing income to be so derived; or
(ii)
is incurred by the payer in carrying on a business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the payer in so carrying on business at or through a permanent establishment of the payer in Australia;
the royalty or the part of the royalty, as the case may be, is an outgoing incurred by the payer in carrying on business in Australia at or through a permanent establishment of the payer in Australia.
History
S 6C(7) amended by No 108 of 1981, No 57 of 1980, and inserted by No 26 of 1974.
SECTION 6CA
SOURCE OF NATURAL RESOURCE INCOME DERIVED BY A NON-RESIDENT
6CA(1)
In this section:
double tax agreement
means an agreement within the meaning of the
International Tax Agreements Act 1953
.
History
Definition of
"
double tax agreement
"
amended by No 22 of 1995.
natural resource income
means income that:
(a)
is derived by a non-resident; and
(b)
is calculated, in whole or in part, by reference to the value or quantity of natural resources produced, recovered or produced and recovered, in Australia after 7 April 1986;
but does not include:
(c)
income that consists of royalty; or
(d)
income where:
(i)
on 7 April 1986, the non-resident had a continuing entitlement to receive the income;
(ii)
the income was derived by the non-resident pursuant to that continuing entitlement;
(iii)
the non-resident was, at 5 o'clock in the afternoon, by standard time in the Australian Capital Territory on 7 April 1986, a resident, within the meaning of a double tax agreement, of a foreign country in respect of which the double tax agreement was in force;
(iv)
before 8 April 1986, the Commissioner had given a statement in writing to the effect that income tax would be levied on 50% of income included in a specified class of income; and
(v)
the income is included in that class of income.
6CA(2)
For the purposes of Divisions
5
and
6
of Part
III
, natural resource income shall be deemed to be attributable to sources in Australia.
6CA(3)
For the purposes of section
255
of this Act and sections
6-5
and
6-10
of the
Income Tax Assessment Act 1997
, natural resource income shall be deemed to have been derived from a source in Australia.
History
S 6CA(3) amended by
No 101 of 2006
, s 3 and Sch 2 item 150, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
S 6CA(3) amended by No 39 of 1997.
S 6CA inserted by No 154 of 1986.
SECTION 6D
6D
SOME TAX OFFSETS UNDER THE 1997 ASSESSMENT ACT ARE TREATED AS CREDITS
A tax offset under a provision of the
Income Tax Assessment Act 1997
that corresponds to a provision of this Act that provides for a credit is taken to be a credit for the purposes of this Act.
Note:
All other tax offsets under the
Income Tax Assessment Act 1997
are treated as rebates: see section
160ADA
.
History
S 6D inserted by
No 143 of 2007
, s 3 and Sch 1 item 28, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s
559A
.
Former s 6D repealed by
No 80 of 2006
, s 3 and Sch 4 item 22, applicable for the purpose of determining whether an account is a share capital account when applying a provision of the
Income Tax Assessment Act 1997
or the
Income Tax Assessment Act 1936
in relation to a time that is after 30 June 2006, even if the account was in existence before that date. S 6D formerly read:
SECTION 6D MEANING OF
SHARE CAPITAL ACCOUNT
6D(1)
[Definition]
A
share capital account
is:
(a)
an account which the company keeps of its share capital; or
(b)
any other account (whether or not called a share capital account), created on or after 1 July 1998, where the first amount credited to the account was an amount of share capital.
6D(2)
[More than one account]
If a company has more than one account covered by subsection (1), the accounts are taken, for the purposes of this Act, to be a single account.
Note:
Because the accounts are taken to be a single account (the
combined share capital account
) tainting any of the accounts has the effect of tainting the combined share capital account.
6D(3)
[Tainted account]
However, an account that is tainted for the purposes of Division
7B
of Part
IIIAA
is not a share capital account for the purposes of this Act other than for the purposes of:
(a)
the definition of
paid-up share capital
in subsection
6(1)
; and
(b)
subsection
44(1B)
; and
(c)
section
46H
; and
(d)
subsection
159GZZZQ(5)
; and
(e)
Division
7B
of Part
IIIAA
; and
(f)
subsection
160ZA(7A)
.
S 6D inserted by No 117 of 1999.
Former s 6D repealed by No 107 of 1989, amended by No 108 of 1981, No 165 and 51 of 1973, and inserted by No 46 of 1972.
FORMER SECTION 6E
6E
RESIDENT SUPERANNUATION FUNDS AND NON-RESIDENT SUPERANNUATION FUNDS
(Repealed by
No 15 of 2007
)
History
Former s 6E repealed by
No 15 of 2007
, s 3 and Sch 1 item 1, applicable to the 2007-2008 income year and later years. S 6E formerly read:
SECTION 6E RESIDENT SUPERANNUATION FUNDS AND NON-RESIDENT SUPERANNUATION FUNDS
6E(1)
Resident superannuation fund at a particular time.
For the purposes of this Act, a fund is a resident superannuation fund at a particular time (the
"
relevant time
"
) if, and only if:
(a)
the fund is a provident, benefit, superannuation or retirement fund at the relevant time; and
(b)
either of the following conditions is satisfied:
(i)
the fund was established in Australia;
(ii)
any asset of the fund at the relevant time is situated in Australia; and
(c)
at the relevant time:
(i)
the central management and control of the fund is in Australia; or
(ii)
the fund satisfies subsection (1A) or (1B); and
(d)
in respect of a fund that, at the relevant time, has at least one active member
-
the percentage worked out using the following formula is not less than 50%:
| |
Total of accumulated entitlements of resident active members
at the relevant time
Total of accumulated entitlements of active members at the relevant time
|
×
100
|
|
where:
accumulated entitlement
, in relation to an active member of the fund at the relevant time, means:
(a) in respect of a member who, at that time, is an active member without defined benefits
-
so much of the value of the assets of the fund at that time as is attributable to:
(i) contributions made to the fund before that time by or in respect of that member; and
(ii) income or accretions arising from those contributions; or
(b) in respect of a member who, at that time, is an active member with defined benefits
-
the amount that would be payable at that time to or in respect of that member if he or she voluntarily ceased to be a member.
History
S 6E(1) amended by No 169 of 2001.
6E(1A)
[
Where trustees are individuals]
A fund satisfies this subsection at the relevant time if the trustees of the fund are individuals and at that time:
(a)
a trustee or trustees of the fund are temporarily absent from Australia; and
(b)
the central management and control of the fund would be in Australia if that trustee or those trustees were in Australia; and
(c)
the continuous period for which that trustee or each of those trustees has, at that time, been outside Australia does not exceed:
(i)
2 years; or
(ii)
such longer period as is applicable to the circumstances in accordance with the regulations.
History
S 6E(1A) inserted by No 169 of 2001.
6E(1B)
[
Where trustee is a company]
A fund satisfies this subsection at the relevant time if the trustee of the fund is a company and at the relevant time:
(a)
a director or directors of the company are temporarily absent from Australia; and
(b)
the central management and control of the fund would be in Australia if that director or those directors were in Australia; and
(c)
the continuous period for which the director or each of those directors has, at that time, been outside Australia does not exceed:
(i)
2 years; or
(ii)
such longer period as is applicable to the circumstances in accordance with the regulations.
History
S 6E(1B) inserted by No 169 of 2001.
6E(1C)
[
Person outside Australia for period]
In applying subsections (1A) and (1B), a person who:
(a)
is outside Australia at a particular time; and
(b)
returns to Australia for a continuous period of 28 days or less; and
(c)
then leaves Australia;
is treated as having been outside Australia for the period referred to in paragraph (b).
History
S 6E(1C) inserted by No 169 of 2001.
6E(2)
Non-resident superannuation fund at a particular time.
For the purposes of this Act, a fund is a non-resident superannuation fund at a particular time if, and only if, the fund:
(a)is a provident, benefit, superannuation or retirement fund at that time; and
(b)
is not a resident superannuation fund at that time.
6E(3)
Resident superannuation fund in relation to a year of income.
For the purposes of this Act, a fund is a resident superannuation fund in relation to a year of income if, and only if:
(a)
the fund is a provident, benefit, superannuation or retirement fund at all times during the year of income when the fund is in existence; and
(b)
the fund is a resident superannuation fund at any time during the year of income when the fund is in existence.
6E(4)
Non-resident superannuation fund in relation to a year of income.
For the purposes of this Act, a fund is a non-resident superannuation fund in relation to a year of income if, and only if, the fund:
(a)
is a provident, benefit, superannuation or retirement fund at all times during the year of income when the fund is in existence; and
(b)
is not a resident superannuation fund in relation to the year of income.
6E(4A)
Active member of fund.
A member of a fund is an
active member
of a fund at the relevant time if:
(a)
the member is a contributor to the fund at that time; or
(b)
another person has made before that time, or makes at or after that time, contributions to the fund on the member
'
s behalf in respect of the year of income in which that time occurs.
History
S 6E(4A) inserted by No 169 of 2001.
6E(4B)
[
Not active member of fund]
A member of a fund is not an
active member
of the fund at the relevant time under paragraph (4A)(b) if:
(a)
the member is not a resident of Australia at the relevant time; and
(b)
the member has ceased to be a contributor to the fund at the relevant time; and
(c)
the only contributions that have been made to the fund on the member
'
s behalf after the member ceased to be a resident of Australia have been payments in respect of a time when the member was a resident.
History
S 6E(4B) inserted by No 169 of 2001.
6E(5)
Definitions.
In this section:
active member
(Repealed by No 169 of 2001)
History
Definition of
"
active member
"
repealed by No 169 of 2001.
active member with defined benefits
, in relation to a fund at the relevant time, means an active member of the fund at that time in relation to whom the fund is a defined benefit scheme.
active member without defined benefits
, in relation to a fund at the relevant time, means an active member of the fund at that time in relation to whom the fund is not a defined benefit scheme.
contributions
, in relation to a fund, includes:
(a)
payments of shortfall components within the meaning of the
Superannuation Guarantee (Administration) Act 1992
; and
(b)
amounts paid to the fund that are taken to be rolled over for the purposes of Subdivision
AA
of Division
2
of Part
III
.
defined benefit scheme
has the meaning that
defined benefit superannuation scheme
would have for the purposes of the
Superannuation Guarantee (Administration) Act 1992
if subsections 6A(2) to (4) of that Act had not been enacted;
value
has the same meaning as in the
Superannuation Industry (Supervision) Act 1993
.
Former s 6E inserted by No 181 of 1994, repealed by No 97 of 1989 and inserted by No 138 of 1987.
SECTION 6F
DUAL RESIDENT INVESTMENT COMPANY
6F(1)
For the purposes of this Act, a company (other than a company in the capacity of trustee) is a dual resident investment company in relation to a year of income if:
(a)
at any time during the year of income the company is a resident of Australia; and
(b)
the company is liable to tax in a foreign country in respect of some or all of the income or profits of the company of the year of income (or would be so liable if the company derived income or profits) because:
(i)
the company is treated as a resident of that country for the purposes of the relevant law of that country; or
(ii)
the company is treated as domiciled in that country for the purposes of the relevant law of that country; or
(iii)
the company's management and control is treated as being located in that country for the purposes of the relevant law of that country; and
(c)
at any time during the year of income when the company was in existence:
(i)
the company was not carrying on business with a reasonable view to profit; or
(ii)
a substantial purpose of the company (whether or not stated in its constituent document) was to acquire or hold shares, securities or other investments in related companies (whether directly or indirectly through one or more companies, partnerships or trusts).
6F(2)
For the purposes of this section, companies are related to each other if they are controlled (as defined by subsection (3)) by the same person, either alone or together with associates (whether or not the same associates are involved in relation to each company).
6F(3)
For the purposes of this section, a person, either alone or together with associates, controls a company if:
(a)
the person, either alone or together with associates:
(i)
controls or is capable of controlling, either directly or through one or more interposed companies, partnerships or trusts, at least 50% of the maximum number of votes that might be cast at a general meeting of the company; or
(ii)
is beneficially entitled to receive, directly or indirectly, at least 50% of any dividends that are or might be paid, or of any distribution of capital that is or may be made, by the company; or
(iii)
is capable, under a scheme, of gaining such control or such an entitlement; or
(b)
the company or its directors are accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the person, either alone or together with associates.
6F(4)
Section
159GZH
applies for the purposes of this section in determining the beneficial entitlement of a person to receive indirectly the whole or a particular fraction of a dividend that is, or might be, paid by a company or of a distribution of capital of a company.
6F(5)
In this section:
associate
has the same meaning as in section
318
;
scheme
means:
(a)
any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b)
any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.
History
S 6F(5) amended by
No 101 of 2006
, s 3 and Sch 2 item 151, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
S 6F inserted by No 35 of 1990.
History
Archived:
S 6G repealed as inoperative by
No 101 of 2006
, s 3 and Sch 1 item 36, effective 14 September 2006. For
application and savings provisions
and for former wording see the
CCH Australian Income Tax Legislation archive
.
SECTION 6H
RECOGNISED SMALL CREDIT UNIONS, RECOGNISED MEDIUM CREDIT UNIONS AND RECOGNISED LARGE CREDIT UNIONS
6H(1)
Recognised small credit union in relation to a year of income.
For the purposes of this Act, a credit union is a recognised small credit union in relation to a year of income if:
(a)
both:
(i)
the year of income is the 1994-95 year of income; and
(ii)
either:
(A)
the credit union is not a designated credit union; or
(B)
the credit union's notional taxable income of the year of income is less than $50,000; or
(b)
both:
(i)
the year of income is the 1995-96 year of income or a later year of income; and
(ii)
the credit union's notional taxable income of the year of income is less than $50,000.
6H(2)
Recognised medium credit union in relation to a year of income.
For the purposes of this Act, a credit union is a recognised medium credit union in relation to a year of income if:
(a)
the year of income is the 1994-95 year of income or a later year of income; and
(b)
the credit union is not a recognised small credit union in relation to the year of income; and
(c)
the credit union's notional taxable income of the year of income is less than $150,000.
6H(3)
Recognised large credit union in relation to a year of income.
For the purposes of this Act, a credit union is a recognised large credit union in relation to a year of income if:
(a)
the year of income is the 1994-95 year of income or a later year of income; and
(b)
the credit union is neither:
(i)
a recognised small credit union in relation to the year of income; nor
(ii)
a recognised medium credit union in relation to the year of income.
6H(4)
Designated credit union.
For the purposes of this section, a credit union is a designated credit union if:
(a)
it was in existence on 1 July 1993; and
(b)
assuming that its accounts for the last accounting period that ended before 1 July 1993 had been prepared in accordance with generally accepted accounting principles
-
the amount that would have been shown in those accounts as the gross value of its assets as at the end of that accounting period is more than $30 million.
6H(5)
Notional taxable income.
For the purposes of this section, the notional taxable income of a credit union of a year of income is the amount that would be its taxable income of the year of income if:
(a)
section
23G
did not apply to income derived by it in the 1994-95 year of income or any later year of income; and
(b)
Division
9
of Part
III
had not been enacted.
History
S 6H(5) substituted by No 181 of 1994.
6H(6)
Definitions.
In this section:
accounting period
, in relation to a credit union, means a period at the end of which the balance of its accounts is struck.
accounts
, in relation to a credit union, means accounts prepared for the purposes of reporting annually to the shareholders in the credit union.
credit union
means a credit union as defined in section
23G
, except a life assurance company.
History
Definition of
"
credit union
"
substituted and amended by No 101 of 2004.
S 6H inserted by No 57 of 1993.
FORMER SECTION 7
7
EXTENSION OF ACT TO PAPUA NEW GUINEA
(Repealed by No 80 of 1975)
History
S 7 substituted by No 164 of 1973.
FORMER SECTION 7A
7A
APPLICATION OF ACT IN RELATION TO CERTAIN TERRITORIES
(Repealed by No 2 of 2015)
History
S 7A repealed by No 2 of 2015, s 3 and Sch 4 item 11, applicable to an income year, a year of income or a tax period that commences on or after 1 July 2015. S 7A formerly read:
SECTION 7A APPLICATION OF ACT IN RELATION TO CERTAIN TERRITORIES
7A(1)
This Act extends to Norfolk Island, the Territory of Cocos (Keeling) Islands and the Territory of Christmas Island.
7A(2)
Subject to Division
1A
of Part
III
, this Act has effect as if Norfolk Island, the Territory of Cocos (Keeling) Islands and the Territory of Christmas Island were part of Australia.
S 7A inserted by No 164 of 1973.
SECTION 7B
7B
APPLICATION OF THE
CRIMINAL CODE
Chapter 2 of the
Criminal Code
applies to all offences against this Act.
Note:
Chapter 2 of the
Criminal Code
sets out the general principles of criminal responsibility.
History
S 7B inserted by No 146 of 2001.
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