Income Tax Assessment Act 1997
This Act may be cited as the Income Tax Assessment Act 1997 . SECTION 1-2 1-2 Commencement
This Act commences on 1 July 1997. SECTION 1-3 Differences in style not to affect meaning 1-3(1)
This Act contains provisions of the Income Tax Assessment Act 1936 in a rewritten form.
1-3(2)
If:
(a) that Act expressed an idea in a particular form of words; and
(b) this Act appears to have expressed the same idea in a different form of words in order to use a clearer or simpler style;
the ideas are not to be taken to be different just because different forms of words were used.
Note:
A public or private ruling about a provision of the Income Tax Assessment Act 1936 is taken also to be a ruling about the corresponding provision of this Act, so far as the 2 provisions express the same ideas: see section 357-85 in Schedule 1 to the Taxation Administration Act 1953 .
SECTION 1-4 1-4 Application
This Act extends to every external Territory referred to in the definition of Australia .
The Commissioner has the general administration of this Act.
Note:
An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953 .
This Act is designed to help you identify accurately and quickly the provisions that are relevant to your purpose in reading the income tax law.
The Act contains tables, diagrams and signposts to help you navigate your way.
You can start at Division 3 (What this Act is about) and follow the signposts as far into the Act as you need to go. You may also encounter signposts to several areas of the law that are relevant to you. Each one should be followed.
Sometimes they will lead down through several levels of detail. At each successive level, the rules are structured in a similar way. They will often be preceded by a Guide to the rules at that level. The rules themselves will usually deal first with the general or most common case and then with the more particular or special cases.
Subdivision 2-B - How the Act is arranged SECTION 2-5 2-5 The pyramidThis Act is arranged in a way that reflects the principle of moving from the general case to the particular.
In this respect, the conceptual structure of the Act is something like a pyramid. The pyramid shape illustrates the way the income tax law is organised, moving down from the central or core provisions at the top of the pyramid, to general rules of wide application and then to the more specialised topics.
![graphic](/law/view/sgif/cch-leg2/pyramid_51_2-55__28120561.gif)
Note:
The Taxation Administration Act 1953 contains the provisions on collection and recovery of tax and provisions on administration.
Many of the terms used in the income tax law are defined.
2-10(2)
Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in `` * business''. The footnote that goes with the asterisk contains a signpost to the Dictionary definitions starting at section 995-1 .
SECTION 2-15 When terms are not identified 2-15(1)
Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked.
2-15(2)
Terms are not asterisked in the non-operative material contained in this Act.
Note:
The non-operative material is described in Subdivision 2-E .
2-15(3)
The following basic terms used throughout the Act are not identified with an asterisk. They fall into 2 groups:
Key participants in the income tax system |
Item | This term: | is defined in: |
1. | Australian resident | section 995-1 |
. | ||
2. | Commissioner | section 995-1 |
. | ||
3. | company | section 995-1 |
. | ||
4. | entity | section 960-100 |
. | ||
4A. | foreign resident | section 995-1 |
. | ||
5. | individual | section 995-1 |
. | ||
6. | partnership | section 995-1 |
. | ||
7. | person | section 995-1 |
. | ||
8. | trustee | section 995-1 |
. | ||
9. | you | section 4-5 |
Core concepts |
Item | This term: | is defined in: |
1. | amount | section 995-1 |
. | ||
2. | assessable income | Division 6 |
. | ||
3. | assessment | section 995-1 |
. | ||
3A. | Australia | Subdivision 960-T |
. | ||
4. | deduct, deduction | Division 8 |
. | ||
5. | income tax | section 995-1 |
. | ||
6. | income year | section 995-1 |
. | ||
7. | taxable income | section 4-15 |
. | ||
8. | this Act | section 995-1 |
SECTION 2-20 2-20 Identifying the defined term in a definition
Within a definition, the defined term is identified by bold italics . Subdivision 2-D - The numbering system SECTION 2-25 2-25 Purposes
Two main purposes of the numbering system in this Act are:
• To indicate the relationship between units at different levels.
For example, the number of Part 2-15 indicates that the Part is in Chapter 2. Similarly, the number of section 165-70 indicates that the section is in Division 165 .
• To allow for future expansion of the Act. The main technique here is leaving gaps between numbers. SECTION 2-30 2-30 Gaps in the numbering
There are gaps in the numbering system to allow for the insertion of new Divisions and sections.
In addition to the operative provisions themselves, this Act contains other material to help you identify accurately and quickly the provisions that are relevant to you and to help you understand them.
This other material falls into 2 main categories.
SECTION 2-40 2-40 GuidesThe first is the ``Guides''. A Guide consists of sections under a heading indicating that what follows is a Guide to a particular Subdivision, Division etc.
Guides form part of this Act but are kept separate from the operative provisions. In interpreting an operative provision, a Guide may only be considered for limited purposes. These are set out in section 950-150 .
SECTION 2-45 2-45 Other materialThe other category consists of material such as notes and examples. These also form part of the Act. They are distinguished by type size from the operative provisions, but are not kept separate from them. Division 3 - What this Act is about 3-1 (Repealed) SECTION 3-1 What this Act is about
(Repealed by No 41 of 2011)
Income tax is payable for each year by each individual and company, and by some other entities.
Note 1:
Individuals who are Australian residents, and some trustees, are also liable to pay Medicare levy for each year. See the Medicare Levy Act 1986 and Part VIIB of the Income Tax Assessment Act 1936 .
Note 2:
Income tax is imposed by the Income Tax Act 1986 and the other Acts referred to in the definition of income tax in section 995-1 .
3-5(2)
Most entities have to pay instalments of income tax before the income tax they actually have to pay can be worked out.
3-5(3)
This Act answers these questions:
1. What instalments of income tax do you have to pay? When and how do you pay them?
See Schedule 1 to the Taxation Administration Act 1953 .
2. How do you work out how much income tax you must pay?
See Division 4 , starting at section 4-1 .
3. What happens if your income tax is more than the instalments you have paid? When and how must you pay the rest?
See Division 5 of this Act and Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
4. What happens if your income tax is less than the instalments you have paid? How do you get a refund?
See Division 3A of Part IIB of the Taxation Administration Act 1953 .
5. What are your other obligations as a taxpayer, besides paying instalments and the rest of your income tax?
See section 3-10 .
6. Do you have any other obligations under the income tax law?
See section 3-15 .
7. If a dispute between you and the Commissioner of Taxation cannot be settled by agreement, what procedures for objection, review and appeal are available?
See Part IVC (sections 14ZL to 14ZZS ) of the Taxation Administration Act 1953 .
SECTION 3-10 Your other obligations as a taxpayer 3-10(1)
Besides paying instalments and the rest of your income tax, your main obligations as a taxpayer are:
(a) to keep records and provide information as required by:
(b) to lodge income tax returns as required by:
Tax file numbers
3-10(2)
Under Part VA of the Income Tax Assessment Act 1936 , a tax file number can be issued to you. You are not obliged to apply for a tax file number. However, if you do not quote one in certain situations:
SECTION 3-15 3-15 Your obligations other than as a taxpayer
Your main obligations under the income tax law, other than as a taxpayer are:
See Part 4-5 (Collection of income tax instalments), starting at section 750-1.
PART 1-3 - CORE PROVISIONS Division 4 - How to work out the income tax payable on your taxable income SECTION 4-1 4-1 Who must pay income taxIncome tax is payable by each individual and company, and by some other entities.
Note:
The actual amount of income tax payable may be nil.
For a list of the entities that must pay income tax, see Division 9 , starting at section 9-1 .
SECTION 4-5 4-5 Meaning of youIf a provision of this Act uses the expression you , it applies to entities generally, unless its application is expressly limited.
Note 1:
The expression you is not used in provisions that apply only to entities that are not individuals.
Note 2:
For circumstances in which the identity of an entity that is a managed investment scheme for the purposes of the Corporations Act 2001 is not affected by changes to the scheme, see Subdivision 960-E of the Income Tax (Transitional Provisions) Act 1997 .
You must pay income tax for each *financial year.
4-10(2)
Your income tax is worked out by reference to your taxable income for the income year . The income year is the same as the *financial year, except in these cases:
(a) for a company, the income year is the previous financial year;
(b) if you have an accounting period that is not the same as the financial year, each such accounting period or, for a company, each previous accounting period is an income year.
Note 1:
The Commissioner can allow you to adopt an accounting period ending on a day other than 30 June. See section 18 of the Income Tax Assessment Act 1936 .
Note 2:
An accounting period ends, and a new accounting period starts, when a partnership becomes, or ceases to be, a VCLP, an ESVCLP, an AFOF or a VCMP. See section 18A of the Income Tax Assessment Act 1936 .
4-10(3)
Work out your income tax for the *financial year as follows:
Income tax = (Taxable income × Rate) − Tax offsets |
Step 2.
Work out your basic income tax liability on your taxable income using:
See the Income Tax Rates Act 1986 and section 4-25 .
Step 3.
Work out your tax offsets for the income year. A tax offset reduces the amount of income tax you have to pay.
For the list of tax offsets, see section 13-1 .
Step 4.
Subtract your *tax offsets from your basic income tax liability. The result is how much income tax you owe for the *financial year.
Note 1:
Division 63 explains what happens if your tax offsets exceed your basic income tax liability. How the excess is treated depends on the type of tax offset.
Note 2:
Section 4-11 of the Income Tax (Transitional Provisions) Act 1997 (which is about the temporary budget repair levy) may increase the amount of income tax worked out under this section.
[ CCH Note: S 4-10(3) was amended by No 16 of 2011, s 3 and Sch 1 item 1, by substituting " Note 1 " for " Note " in the note at the end of the subsection. However, since Note 3 also appears at the end of s 4-10(3), " Note " has been renumbered as " Note 1 " and " Note 3 " has been renumbered to " Note 2 " , in line with an editorial change made by the Federal Register of Legislation under the Legislation Act 2003 to bring it into line with legislative drafting practice.]
4-10(3A)
(Repealed by No 58 of 2006 )
Income tax worked out on another basis
4-10(4)
For some entities, some or all of their income tax for the * financial year is worked out by reference to something other than taxable income for the income year.
See section 9-5 .
SECTION 4-15 How to work out your taxable income 4-15(1)
Work out your taxable income for the income year like this:
Taxable income = Assessable income − Deductions |
Step 1.
Add up all your assessable income for the income year.
To find out about your assessable income, see Division 6 .
Step 2.
Add up your deductions for the income year.
To find out what you can deduct, see Division 8 .
Step 3.
Subtract your deductions from your assessable income (unless they exceed it). The result is your taxable income. (If the deductions equal or exceed the assessable income, you don ' t have a taxable income.)
Note:
If the deductions exceed the assessable income, you may have a tax loss which you may be able to utilise in that or a later income year: see Division 36 .
4-15(2)
There are cases where taxable income is worked out in a special way:
Item | For this case … | See: |
1. | A company does not maintain continuity of ownership and control during the income year and does not satisfy the business continuity test | Subdivision 165-B |
1A. | (Repealed by No 80 of 2007 ) | |
1B. | An entity is a *member of a *consolidated group at any time in the income year | Part 3-90 |
2. | A company becomes a PDF (pooled development fund) during the income year, and the PDF component for the income year is a nil amount | section 124ZTA of the Income Tax Assessment Act 1936 |
3. | A shipowner or charterer:
• has its principal place of business outside Australia; and |
section 129 of the Income Tax Assessment Act 1936 |
• carries passengers, freight or mail shipped in Australia | ||
4. | An insurer who is a foreign resident enters into insurance contracts connected with Australia | sections 142 and 143 of the Income Tax Assessment Act 1936 |
5. | The Commissioner makes a default or special assessment of taxable income | sections 167 and 168 of the Income Tax Assessment Act 1936 |
6. | The Commissioner makes a determination of the amount of taxable income to prevent double taxation in certain treaty cases | section 24 of the International Tax Agreements Act 1953 |
Note:
A life insurance company can have a taxable income of the complying superannuation class and/or a taxable income of the ordinary class for the purposes of working out its income tax for an income year: see Subdivision 320-D .
Subsection 392-35(3) may increase your basic income tax liability beyond the liability worked out simply by applying the income tax rates to your taxable income.
Note:
Subsection 392-35(3) increases some primary producers ' tax liability by requiring them to pay extra income tax on their averaging components worked out under Subdivision 392-C .
If your assessed income tax liability exceeds the credits available to you under the PAYG system, this Division explains when you must pay the excess to the Commissioner.
If your assessment is amended so that you must pay income tax, or pay more income tax than under the previous assessment, this Division explains:
Note:
For provisions about the collection and recovery of income tax and other tax-related liabilities, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 .
Scope
5-5(1)
This section tells you when income tax you must pay for a *financial year is due and payable.
Note:
The Commissioner may defer the time at which the income tax is due and payable: see section 255-10 in Schedule 1 to the Taxation Administration Act 1953 .
5-5(2)
The income tax is only due and payable if the Commissioner makes an *assessment of your income tax for the year.
5-5(3)
However, if the Commissioner does make an *assessment of your income tax for the year, the tax may be taken to have been due and payable at a time before your assessment was made.
Note:
This is to ensure that general interest charge begins to accrue from the same date for all like entities. General interest charge on unpaid income tax is calculated from when the tax is due and payable, not from when the assessment is made: see section 5-15 .
Original assessments - self-assessment entities
5-5(4)
If you are a *self-assessment entity, the income tax is due and payable on the first day of the sixth month after the end of the income year.
Example:
If your income year is the same as the financial year, your income tax would be due and payable on 1 December.
Original assessments - other entities
5-5(5)
If you are not a *self-assessment entity, the income tax is due and payable 21 days after the day (the return day ) on or before which you are required to lodge your *income tax return with the Commissioner.
Note:
For rules about income tax returns and when they are due, see Part IV of the Income Tax Assessment Act 1936 .
5-5(6)
However, if you lodge your return on or before the return day and the Commissioner gives you a notice of *assessment (other than an amended assessment) after the return day, the income tax is due and payable 21 days after the Commissioner gives you the notice.
Amended assessments
5-5(7)
If the Commissioner amends your *assessment, any extra income tax resulting from the amendment is due and payable 21 days after the day on which the Commissioner gives you notice of the amended assessment.
Note:
Shortfall interest charge may be payable, on any amount of extra income tax payable as a result of the amended assessment, for each day in the period that:
An amount of *shortfall interest charge that you are liable to pay is due and payable 21 days after the day on which the Commissioner gives you notice of the charge.
Note:
Shortfall interest charge is imposed if the Commissioner amends an assessment and the amended assessment results in an increase in some tax payable. For provisions about liability for shortfall interest charge, see Division 280 in Schedule 1 to the Taxation Administration Act 1953 .
If an amount of income tax or *shortfall interest charge that you are liable to pay remains unpaid after the time by which it is due to be paid, you are liable to pay the *general interest charge on the unpaid amount for each day in the period that:
(a) starts at the beginning of the day on which the amount was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the income tax or shortfall interest charge;
(ii) general interest charge on any of the income tax or shortfall interest charge.
Note 1:
The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 .
Note 2:
Shortfall interest charge is worked out under Division 280 in Schedule 1 to that Act.
![Graphic](/law/view/sgif/cch-leg2/graphic_24352004.gif)
6-1(1)
Assessable income consists of ordinary income and statutory income.
6-1(2)
Some ordinary income, and some statutory income, is exempt income.
6-1(3)
Exempt income is not assessable income.
6-1(4)
Some ordinary income, and some statutory income, is neither assessable income nor exempt income.
For the effect of the GST in working out assessable income, see Division 17 .
6-1(5)
An amount of ordinary income or statutory income can have only one status (that is, assessable income, exempt income or non-assessable non-exempt income) in the hands of a particular entity.
SECTION 6-5 Income according to ordinary concepts ( ordinary income ) 6-5(1)
Your assessable income includes income according to ordinary concepts, which is called ordinary income .
Note:
Some of the provisions about assessable income listed in section 10-5 may affect the treatment of ordinary income.
6-5(2)
If you are an Australian resident, your assessable income includes the * ordinary income you * derived directly or indirectly from all sources, whether in or out of Australia, during the income year.
6-5(3)
If you are a foreign resident, your assessable income includes:
(a) the * ordinary income you * derived directly or indirectly from all * Australian sources during the income year; and
(b) other * ordinary income that a provision includes in your assessable income for the income year on some basis other than having an * Australian source.
6-5(4)
In working out whether you have derived an amount of * ordinary income, and (if so) when you derived it, you are taken to have received the amount as soon as it is applied or dealt with in any way on your behalf or as you direct.
SECTION 6-10 Other assessable income ( statutory income ) 6-10(1)
Your assessable income also includes some amounts that are not * ordinary income.
Note:
These are included by provisions about assessable income. For a summary list of these provisions, see section 10-5 .
6-10(2)
Amounts that are not * ordinary income, but are included in your assessable income by provisions about assessable income, are called statutory income .
Note 1:
Although an amount is statutory income because it has been included in assessable income under a provision of this Act, it may be made exempt income or non-assessable non-exempt income under another provision: see sections 6-20 and 6-23 .
Note 2:
Many provisions in the summary list in section 10-5 contain rules about ordinary income. These rules do not change its character as ordinary income.
6-10(3)
If an amount would be * statutory income apart from the fact that you have not received it, it becomes statutory income as soon as it is applied or dealt with in any way on your behalf or as you direct.
6-10(4)
If you are an Australian resident, your assessable income includes your * statutory income from all sources, whether in or out of Australia.
6-10(5)
If you are a foreign resident, your assessable income includes:
(a) your * statutory income from all * Australian sources; and
(b) other * statutory income that a provision includes in your assessable income on some basis other than having an * Australian source.
SECTION 6-15 What is not assessable income 6-15(1)
If an amount is not * ordinary income, and is not * statutory income, it is not assessable income (so you do not have to pay income tax on it).
6-15(2)
If an amount is * exempt income, it is not assessable income .
Note:
If an amount is exempt income, there are other consequences besides it being exempt from income tax. For example:
6-15(3)
If an amount is * non-assessable non-exempt income, it is not assessable income .
Note 1:
You cannot deduct as a general deduction a loss or outgoing incurred in deriving an amount of non-assessable non-exempt income (see Division 8 ).
Note 2:
Capital gains and losses on assets used to produce some types of non-assessable non-exempt income are disregarded (see section 118-12 ).
SECTION 6-20 Exempt income 6-20(1)
An amount of * ordinary income or * statutory income is exempt income if it is made exempt from income tax by a provision of this Act or another * Commonwealth law.
For summary lists of provisions about exempt income, see sections 11-5 and 11-15 .
6-20(2)
* Ordinary income is also exempt income to the extent that this Act excludes it (expressly or by implication) from being assessable income.
6-20(3)
By contrast, an amount of * statutory income is exempt income only if it is made exempt from income tax by a provision of this Act outside this Division or another * Commonwealth law.
6-20(4)
If an amount of * ordinary income or * statutory income is * non-assessable non-exempt income, it is not exempt income .
Note:
An amount of non-assessable non-exempt income is not taken into account in working out the amount of a tax loss.
SECTION 6-23 6-23 Non-assessable non-exempt income
An amount of * ordinary income or * statutory income is non-assessable non-exempt income if a provision of this Act or of another * Commonwealth law states that it is not assessable income and is not * exempt income.
Note:
Capital gains and losses on assets used to produce some types of non-assessable non-exempt income are disregarded (see section 118-12 ).
For a summary list of provisions about non-assessable non-exempt income, see Subdivision 11-B .
Sometimes more than one rule includes an amount in your assessable income:
For a summary list of the provisions about assessable income, see section 10-5 .
However, the amount is included only once in your assessable income for an income year, and is then not included in your assessable income for any other income year.
6-25(2)
Unless the contrary intention appears, the provisions of this Act (outside this Part) prevail over the rules about * ordinary income.
Note:
This Act contains some specific provisions about how far the rules about ordinary income prevail over the other provisions of this Act.
Division 8 - Deductions SECTION 8-1 General deductions 8-1(1)
You can deduct from your assessable income any loss or outgoing to the extent that:
(a) it is incurred in gaining or producing your assessable income; or
(b) it is necessarily incurred in carrying on a * business for the purpose of gaining or producing your assessable income.
Note:
Division 35 prevents losses from non-commercial business activities that may contribute to a tax loss being offset against other assessable income.
8-1(2)
However, you cannot deduct a loss or outgoing under this section to the extent that:
(a) it is a loss or outgoing of capital, or of a capital nature; or
(b) it is a loss or outgoing of a private or domestic nature; or
(c) it is incurred in relation to gaining or producing your * exempt income or your * non-assessable non-exempt income; or
(d) a provision of this Act prevents you from deducting it.
For a summary list of provisions about deductions, see section 12-5 .
8-1(3)
A loss or outgoing that you can deduct under this section is called a general deduction .
For the effect of the GST in working out deductions, see Division 27 .
Note:
If you receive an amount as insurance, indemnity or other recoupment of a loss or outgoing that you can deduct under this section, the amount may be included in your assessable income: see Subdivision 20-A .
SECTION 8-5 Specific deductions 8-5(1)
You can also deduct from your assessable income an amount that a provision of this Act (outside this Division) allows you to deduct.
8-5(2)
Some provisions of this Act prevent you from deducting an amount that you could otherwise deduct, or limit the amount you can deduct.
8-5(3)
An amount that you can deduct under a provision of this Act (outside this Division) is called a specific deduction .
Note:
If you receive an amount as insurance, indemnity or other recoupment of a deductible expense, the amount may be included in your assessable income: see Subdivision 20-A .
For a summary list of provisions about deductions, see section 12-5 .
SECTION 8-10 8-10 No double deductions
If 2 or more provisions of this Act allow you deductions in respect of the same amount (whether for the same income year or different income years), you can deduct only under the provision that is most appropriate. PART 1-4 - CHECKLISTS OF WHAT IS COVERED BY CONCEPTS USED IN THE CORE PROVISIONS Division 9 - Entities that must pay income tax SECTION 9-1A 9-1A Effect of this Division
This Division is a * Guide.
Income tax is payable by the entities listed in the table.
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .
Item | Income tax is payable by this kind of entity: | because of this provision: | |
1 | An individual | section 4-1 | |
2 | A company, that is: | section 4-1 | |
• a body corporate; or | |||
•
an unincorporated body (except a
partnership) |
|||
3 | A company that was a member of a wholly-owned group if a former subsidiary in the group is treated as having disposed of leased plant and does not pay all of the income tax resulting from that treatment | section 45-25 | |
3A | A company that is a corporate collective investment vehicle (CCIV) | Subdivision 195-C | |
3B | The trustee of an attribution managed investment trust (AMIT) | sections 276-405 to 276-425 | |
4 | A superannuation provider in relation to a complying superannuation fund | sections 295-5 and 295-605 | |
5 | A superannuation provider in relation to a non-complying superannuation fund | sections 295-5 and 295-605 | |
6 | A superannuation provider in relation to a complying approved deposit fund | section 295-5 | |
7 | A superannuation provider in relation to a non-complying approved deposit fund | section 295-5 | |
8 | The trustee of a pooled superannuation trust | section 295-5 | |
8A | A sovereign entity | section 880-55 | |
9 | A corporate limited partnership | section 94J | |
10 | A mutual insurance association (as described in section 121) | section 121 | |
11 | A trustee (except one covered by another item in this table), but only in respect of some kinds of income of the trust | sections 98 , 99 , 99A and 102 | |
12 | (Repealed by No 53 of 2016) | ||
13 | The trustee of a public trading trust | section 102S |
For some entities, some or all of their income tax for the * financial year is worked out as described in the table.
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .
Item | This kind of entity is liable to pay income tax worked out by reference to: | See: |
1 | A company that was a member of a wholly-owned group is jointly and severally liable to pay an amount of income tax if a former subsidiary in the group is treated as having disposed of leased plant and does not pay all of the income tax resulting from that treatment. | section 45-25 |
. | ||
1A | The trustee of an attribution managed investment trust (AMIT) is liable to pay income tax on certain amounts reflecting under-attribution of income or over-attribution of tax offsets | sections 276-405 to 276-425 |
. | ||
2 | A superannuation provider in relation to a complying superannuation fund is to be assessed and is liable to pay income tax on no-TFN contributions income as well as on taxable income. | sections 295-5 and 295-605 |
. | ||
3 | A superannuation provider in relation to a non-complying superannuation fund is to be assessed and is liable to pay income tax on no-TFN contributions income as well as on taxable income. | sections 295-5 and 295-605 |
. | ||
4 | An RSA provider is to be assessed and is liable to pay income tax on no-TFN contributions income as well as on taxable income. | sections 295-5 , 295-605 and 320-155 |
. | ||
4A | (Repealed by No 92 of 2020) | |
. | ||
5 | An Australian resident individual with:
• eligible foreign remuneration under section 23AF; or • foreign earnings under section 23AG; (from working in a foreign country) is liable to pay income tax worked out by reference to his or her assessable income less some of his or her deductions. |
section 23AF or 23AG |
. | ||
6 | A trustee covered by item 11 in the table in section 9-1 is liable to pay income tax worked out by reference to the net income of the trust for the income year. | sections 98 , 99 and 99A |
. | ||
7 | (Repealed by No 53 of 2016) | |
. | ||
8 | The trustee of a public trading trust is liable to pay income tax worked out by reference to the net income of the trust for the income year. | section 102S |
. | ||
9 | An entity that is liable to pay income tax (worked out by reference to taxable income or otherwise) is also liable to pay income tax worked out by reference to diverted income or diverted trust income for the income year. | section 121H |
. | ||
10 | An Australian insurer that re-insures overseas can elect to pay, as agent for the re-insurer, income tax worked out by reference to the amount of the re-insurance premiums. | section 148 |
9-5(2)
For entities covered by an item in the table in subsection (1) , the income year is the same as the * financial year, except in these cases: (a) for a company, or an entity covered by item 2 or 3 in the table, the income year is the previous financial year; (b) if an entity has an accounting period that is not the same as the financial year, each such accounting period or, for a company, each previous accounting period is an income year.
Note 1:
The Commissioner can allow an entity to adopt an accounting period ending on a day other than 30 June. See section 18 of the Income Tax Assessment Act 1936 .
Note 2:
An accounting period ends, and a new accounting period starts, when a partnership becomes, or ceases to be, a VCLP, an ESVCLP, an AFOF or a VCMP. See section 18A of the Income Tax Assessment Act 1936 .
Division 10 - Particular kinds of assessable income SECTION 10-1 10-1 Effect of this Division
This Division is a * Guide.
The provisions set out in the table:
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .
Accrued leave transfer payments | 15-5 | |
alienated personal services income | 86-15 | |
allowances | ||
see employment | ||
annual leave | ||
see leave payments | ||
annuities | 27H | |
approved deposit fund (ADFs) | ||
see superannuation | ||
attributable income | ||
see controlled foreign corporations | ||
avoidance of tax | ||
general | 177F | |
diversion of income | 121H | |
see also transfers of income | ||
bad debts | ||
see recoupment | ||
balancing adjustment | ||
see capital allowances, investments, R & D, scientific research and tax exempt entities | ||
banking | ||
offshore banking unit, deemed interest on payments to by owner | 121EK | |
barter transactions | 21 , 21A , 15-2 | |
beneficiaries | ||
see trusts | ||
benefits | ||
business, non-cash | 21A | |
consideration, non-cash | 21 | |
meals you provide in an in-house dining facility | 32-70 | |
see also employment and superannuation | ||
bonus shares | ||
see shares | ||
bounties | 15-10 | |
capital allowances | ||
excess of termination value over adjustable value | ||
generally | 40-285 | |
for some cars | 40-370 | |
depreciating asset in low-value pool | 40-445(2) | |
expenditure in software development pool | 40-460 | |
recovery of petroleum resource rent tax | 40-750(3) | |
capital gains | 102-5 | |
see also insurance | ||
car expenses | ||
cents per kilometres reimbursement of | 15-70 | |
carried interests | ||
carried interests, not ordinary income | 118-21 | |
CFCs | ||
see controlled foreign corporations | ||
charters | ||
see shipping | ||
child | ||
non-trust income of, unearned | 102AE | |
trust income of, unearned | 102AG | |
collecting societies | ||
payments of royalties by copyright collecting societies | 15-22 | |
payments of royalties by resale royalty collecting society | 15-23 | |
company | ||
see controlled foreign corporations, co-operative company, directors, dividends, liquidation, shareholders and shares | ||
compensation | ||
live stock or trees, recoveries for loss of | 385-130 | |
profits or income, insurance or indemnity for loss of | 15-30 | |
received by lessor for lessee ' s non-compliance with lease obligation to repair | 15-25 | |
trading stock, insurance or indemnity for loss of | 70-115 | |
see also insurance, live stock, recoupment and scientific research | ||
consideration | ||
see benefits | ||
consolidated groups and MEC groups | ||
Assets in relation to Division 230 financial arrangement | 701-61(3) | |
controlled foreign corporations (CFCs) | ||
attributable income of | 456 to 459A | |
see also dividends and taxes | ||
co-operative company | ||
receipts of | 119 | |
credit union | ||
see co-operative company | ||
currency gains | ||
see foreign exchange | ||
currency losses | ||
see recoupment | ||
death | ||
see trusts | ||
debt/equity swap | ||
see shares and units | ||
defence forces | ||
allowances and benefits for service as a member of | 15-2 | |
depreciation | ||
see capital allowances | ||
directors | ||
excessive remuneration or retirement payment from company | 109 | |
distributions | ||
see dividends | ||
dividends | ||
benefit of LIC capital gain through a trust or partnership | 115-280 | |
general | 44(1) | |
distribution from a controlled foreign corporation | 47A(1) | |
franked dividends, credits on | 207-20(1) , 207-35(1) , 207-35(3) | |
see also liquidation | ||
elections | ||
local government, reimbursement of expenses of | 25-65 | |
see also recoupment | ||
electricity connections | ||
see recoupment | ||
[ eligible termination payments (ETPs)] (Repealed by No 15 of 2007) | ||
employees | ||
see shares | ||
employment | ||
allowances and benefits in relation to employment or rendering services | 15-2 | |
employment termination payment | 82-10
82-65 82-70 |
|
other payments for employment termination | 83-295 | |
return to work payments | 15-3 | |
see accrued leave transfer payments, leave payments, superannuation and sections 82-10A and 82-10C of the Income Tax (Transitional Provisions) Act 1997 | ||
environment | ||
see recoupment | ||
farm management deposits | ||
repayments of | 393-10 | |
[ FIFs] (Repealed by No 114 of 2010) | ||
films | ||
Australian, proceeds of investment in | 26AG | |
financial arrangements | ||
gains from | 230-15(1) | |
[ first home saver accounts] (Repealed by No 70 of 2015) | ||
foreign exchange | ||
gains | 775-15 | |
see also recoupment | ||
foreign income tax deduction for franked distributions | ||
Additional Tier 1 capital exception | 15-80 | |
foreign investment funds (FIFs) (Repealed by No 114 of 2010) | ||
forestry agreement | ||
amount where section 82KZMG of the 1936 Act applies | 15-45 | |
CGT event in relation to forestry interest in agreement | 82KZMGB | |
forestry managed investment schemes | ||
forestry manager ' s receipts under scheme | 15-46 | |
CGT event in relation to forestry interest in scheme for initial participant | 394-25(2) | |
CGT event in relation to forestry interest in scheme for subsequent participant | 394-30(2) | |
franked dividends | ||
see dividends | ||
funeral policy | ||
benefit under | 15-55 | |
general insurance companies and companies that self insure | ||
gross premiums | 321-45 | |
reduction in value of adjusted liability for incurred claims | 321-10 | |
reduction in value of adjusted liability for remaining coverage | 321-50 | |
reduction in value of outstanding claims liability | 321-80 | |
geothermal energy | ||
providing geothermal exploration information | 15-40 | |
grapevines | ||
see recoupment | ||
horticultural plants | ||
see recoupment | ||
improvements | ||
see leases | ||
imputation | ||
see dividends | ||
indemnity | ||
see compensation and recoupment | ||
[ industrial property] (Repealed by No 88 of 2013) | ||
[ infrastructure borrowings] (Repealed by No 4 of 2018) | ||
insurance | ||
bonuses | 26AH , 15-75 | |
company, demutualisation of | 121AT | |
life insurance, transfer of contributions by superannuation fund or approved deposit fund to | 295-260 | |
payments from a non-resident reinsurer in respect of a loss | 148 | |
premiums in respect of Australian business received by non-resident insurers | 143 | |
premiums paid to a non-resident for reinsurance | 148 | |
premiums paid to mutual insurance association | 121 | |
premiums payable to a non-resident for insurance of property in Australia | 142(1) | |
premiums payable to a non-resident for insuring an event that can only happen in Australia | 142(1) | |
premiums payable to a non-resident under an insurance contract with a resident | 142(2) | |
rebates and premiums refunded to a superannuation fund trustee | 295-320 (table item 4) | |
see also compensation, life insurance companies and recoupment | ||
[ intellectual property] (Repealed by No 77 of 2001) | ||
interest | ||
overpaid tax, on | 15-35 | |
qualifying securities, on | 159GQ , 159GW(1) | |
see also co-operative companies and leases | ||
investments | ||
prizes from investment-related lotteries | 26AJ | |
qualifying securities, payments to partial residents made under | 159GW(2) | |
qualifying securities, amount assessable to issuer of | 159GT(1B) | |
qualifying securities, balancing adjustment on the transfer of | 159GS | |
securities, variation in terms of | 159GV(2) | |
securities lending arrangements | 26BC | |
traditional securities, gains on the disposal or redemption of | 26BB | |
see also films and interest | ||
landcare operations | ||
see recoupment | ||
leased plant | Division 45 | |
leases | ||
amounts received by lessor from lessee for non-compliance with lease obligation to repair | 15-25 | |
interest component of payments under non-leveraged finance leases | 159GK | |
partnership leasing property under non-leveraged finance lease, new partner or contribution of capital since 14 May 1985 | 159GO | |
premiums relating to assignment of a lease granted before 20 September 1985 | 26AB | |
profit on disposal of previously leased motor vehicles | Subdivision 20-B | |
leases of luxury cars | ||
accrual amounts | 242-35 | |
adjustment amounts (lessee) | 242-70 | |
adjustment amounts (lessor) | 242-65 | |
leave payments | ||
accrued leave transfer payment | 15-5 | |
unused annual leave payment | 83-10 | |
unused long service leave payment | 83-80 | |
see employment | ||
[ life assurance companies ] (Repealed by No 89 of 2000) | ||
life insurance companies | Subdivision 320-B | |
limited recourse debt | ||
excessive deduction amount (debtor) | 243-40 | |
excessive deduction amount (partner) | 243-65 | |
liquidation | ||
distribution to a shareholder in winding up a company | 47(1) | |
live stock | ||
death or destruction of | Subdivision 385-E | |
departing Australia and | 385-160 , 385-163 | |
insolvency, and | 385-160 , 385-163 | |
profits on death or disposal of | Subdivision 385-E , 385-160 | |
see also compensation and trading stock | ||
long service leave | ||
see leave payments | ||
losses | ||
see compensation | ||
lotteries | ||
see investments | ||
managed investment trusts | ||
gains etc. from carried interests | 275-200(2) | |
meals | ||
see benefits | ||
[ minerals resource rent tax] (Repealed by No 96 of 2014) | ||
Mining | ||
providing mining, quarrying or prospecting information | 15-40 | |
minors | ||
see child | ||
motor vehicles | ||
see car expenses and leases | ||
mutual insurance | ||
see insurance | ||
non-cash benefits | ||
see benefits and employment | ||
notional sales and loans | ||
adjustment amounts (lessee) | 240-110(2) | |
adjustment amounts (lessor) | 240-105(2) | |
notional interest | 240-35(1) | |
profit on actual sale | 240-35(3) | |
profit on notional sale | 240-35(2) | |
offshore banking units | ||
see banking | ||
partnerships | ||
net income of, partner ' s interest in | 92(1) | |
uncontrolled partnership income, effect of | 94 | |
see also leases | ||
[ payments to members of copyright collecting societies] (Repealed by No 126 of 2009) | ||
petroleum | ||
resource rent tax, recovery of | 20-30(1) | |
see also capital allowances | ||
[ pooled depreciated property] (Repealed by No 77 of 2001) | ||
[ pooled software] (Repealed by No 77 of 2001) | ||
premiums | ||
see insurance, leases and superannuation | ||
primary production | ||
see recoupment | ||
prizes | ||
see investments | ||
profits | ||
cross-border transfer pricing | 815-30 | |
profit-making undertaking or plan | 15-15 | |
sale of property acquired before 20 September 1985 for profit-making by sale | 25A | |
see also avoidance of tax | ||
Project pools | ||
An amount received for the abandonment, sale or other disposal of a project | 40-830 , 40-832 | |
property | ||
see profits and trusts | ||
quarrying | ||
see mining and recoupment | ||
R & D | ||
balancing adjustment | 40-292 , 40-293 , 355-315 and 355-525 | |
disposal of R & D results | 355-410 | |
recoupments and feedstock adjustments | 355-450 | |
rates | ||
see recoupment | ||
recoupment | ||
insurance or indemnity for deductible losses or outgoings | Subdivision 20-A | |
other recoupment for certain deductible losses or outgoings | Subdivision 20-A | |
see also car expenses, compensation, elections and petroleum | ||
registered emissions units | ||
disposal of | 420-25 | |
disposal for a non-commercial purpose | 420-40 | |
difference between opening and closing value of | 420-45 | |
reimbursements | ||
see car expenses, dividends, elections, petroleum and recoupment | ||
reinsurance | ||
see insurance | ||
[ repayments] (Repealed by No 66 of 2003) | ||
[ research & development] (Repealed by No 93 of 2011) | ||
[ residual value] (Repealed by No 88 of 2013) | ||
retirement payments | ||
see directors, leave payments and shareholders | ||
rights to income | ||
see transfers of income | ||
roads | ||
see timber | ||
royalties | 15-20 | |
schemes | ||
see avoidance of tax | ||
scholarship plan | ||
benefit under | 15-60 | |
scientific research | ||
consideration for disposal or destruction of buildings acquired for scientific research | 73A(4) | |
securities | ||
see investments | ||
services | ||
see co-operative companies, employment, loans and trusts | ||
shareholders | ||
excessive remuneration or retirement payment from company | 109 | |
loans, payments and credits from company | Division 7A of Part III | |
see also dividends | ||
shares | ||
acquired in a debt/equity swap, profit on the disposal cancellation or redemption of | 63E(4) | |
bonus shares, cost of | 6BA | |
buy-backs | 159GZZZJ to 159GZZZT | |
employee share schemes | Subdivisions 83A-B and 83A-C | |
holding company shares held by a subsidiary, cancellation of | 159GZZZC to 159GZZZI | |
see also dividends | ||
shipping | ||
goods shipped in Australia, amounts paid to foreign shipowners and charterers for | 129 | |
[ small-medium enterprises (SMEs)] (Repealed by No 23 of 2018) | ||
[ software] (Repealed by No 77 of 2001) | ||
[ spectrum licences] (Repealed by No 77 of 2001) | ||
subsidies | 15-10 | |
[ sugar industry exit grants] (Repealed by No 109 of 2014) | ||
superannuation | ||
associated earnings on non-concessional contributions | Subdivision 292-B | |
benefits generally | Divisions 301 to 306 | |
benefits in breach of legislative requirements | Division 304 | |
benefits received from older superannuation funds | 26AF , 26AFA | |
complying fund becomes non-complying, effect of | 295-320 (table item 2) | |
contributions to an approved deposit fund | Subdivisions 295-C and 295-D | |
contributions to an RSA | Subdivision 295-C | |
contributions to a superannuation fund | Subdivisions 295-C and 295-D | |
death benefits | 302-75 , 302-85 , 302-90 , 302-145 | |
excess concessional contributions | 291-15(a) | |
first home super saver scheme | 313-20 | |
foreign superannuation funds and schemes, benefits from | 305-70 | |
member benefits | 301-20 , 301-25 , 301-35 , 301-40 , Subdivision 301-C | |
foreign fund becoming Australian, effect of | 295-320 (table item 3) | |
no-TFN contributions income | 295-605 | |
release authorities, payments from | 304-20 | |
returned contributions | 290-100 | |
trustee ' s liability to pay tax | 295-5(2) and (3) | |
see insurance | ||
tax avoidance | ||
see avoidance of tax and transfers of income | ||
tax exempt entities | ||
treatment of income and gains on becoming taxable | Schedule 2D | |
taxes | ||
see dividends, foreign investment funds, interest and recoupment | ||
termination of employment | ||
see directors, eligible termination payments, leave payments and shareholders | ||
theft | ||
see recoupment | ||
[ timber] (Repealed by No 77 of 2001) | ||
trading stock | ||
change in interests in | 70-100 | |
death of trader and | 70-105 | |
difference between opening and closing value of | 70-35 | |
disposal not at arm ' s length | 70-20 | |
disposal of outside ordinary course of business | 70-90 , 70-95 | |
see also compensation and tax exempt entities | ||
transfer pricing | ||
arm ' s length principle for cross-border conditions between entities | Subdivision 815-B | |
arm ' s length principle for permanent establishments | Subdivision 815-C | |
transfers of income | ||
consideration for transfer of right to income | 102CA | |
payments for transfer or disposal of property | 262 | |
transferee, effect on of transfer of right to income | 102C | |
transferor, effect on of transfer of right to income | 102B | |
travel expenses | ||
see car expenses | ||
trusts | ||
beneficiary under legal disability or with a vested and indefeasible interest in trust income | 100 | |
deceased estates, income of | 101A | |
discretionary trusts | 101 | |
net income of a trust estate, your present entitlement to | 97 , 101 | |
non-resident beneficiaries, liability to tax of | 98A | |
non-resident trust estates to which you have transferred property or services, income of | 102AAZD | |
property of applied for benefit of beneficiaries | 99B | |
trust estate includes income from another trust estate | 94(5) | |
trustees ' liability to tax | 98 , 99 , 99A , 102 , 102S | |
see also avoidance of tax and superannuation | ||
unearned income | ||
see child | ||
units | ||
acquired in a debt/equity swap, profit on the disposal, cancellation or redemption of | 63E(4) | |
water conservation | ||
see recoupment | ||
winding-up | ||
see insurance and liquidation | ||
wool clips | ||
double wool clips, treatment of | 385-135 , 385-155 | |
work in progress | ||
receipt of a work in progress amount | 15-50 |
This Subdivision is a * Guide.
Ordinary income or statutory income which is exempt from income tax can be divided into 2 main classes:
(a) ordinary or statutory income of entities that are exempt, no matter what kind of ordinary or statutory income they have (see table in section 11-5 );
(b) ordinary or statutory income of a kind that is exempt (see table in section 11-15 ).
(c) (Repealed by No 12 of 2012)
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .
Note:
Special rules apply to entities that cease to be exempt. See Schedule 2D to the Income Tax Assessment Act 1936 .
charity, education or science | ||
educational institution, public | 50-5 | |
registered charity | 50-5 | |
scientific institution | 50-5 | |
scientific research fund | 50-5 | |
scientific society etc. | 50-5 | |
community service | ||
community service society etc. | 50-10 | |
employees and employers | ||
employee association | 50-15 | |
employer association | 50-15 | |
trade union | 50-15 | |
[ film] (Repealed by No 41 of 2011) | ||
[ funds established by will or trust] (Repealed by No 96 of 2013) | ||
[ finance] (Repealed by No 101 of 2004) | ||
government | ||
constitutionally protected fund | 50-25 | |
local governing body | 50-25 | |
municipal corporation | 50-25 | |
public authority | 50-25 | |
state/territory bodies | 24AK to 24AZ | |
health | ||
health benefits organisation | 50-30 | |
hospital | 50-30 | |
medical benefits organisation | 50-30 | |
HIH rescue package | ||
HIH Claims Support Trust | 322-10 | |
mining | ||
British Phosphate Commissioners Banaba Contingency Fund | 50-35 | |
primary or secondary resources, and tourism | ||
agricultural society etc. | 50-40 | |
aviation society etc. | 50-40 | |
Global Infrastructure Hub Ltd | 50-40 | |
horticultural society etc. | 50-40 | |
industrial society etc. | 50-40 | |
manufacturing society etc. | 50-40 | |
pastoral society etc. | 50-40 | |
tourism society etc. | 50-40 | |
viticultural society etc. | 50-40 | |
sports, culture or recreation | ||
animal racing society etc. | 50-45 | |
art society etc. | 50-45 | |
F é d é ration Internationale de Football Association | 50-45 | |
FWWC2023 Pty Ltd | 50-45 | |
game society etc. | 50-45 | |
ICC Business Corporation FZ-LLC | 50-45 | |
literature society etc. | 50-45 | |
music society etc. | 50-45 | |
sport society etc. | 50-45 |
[ CCH Note: S 11-5 will be amended by No 70 of 2015 (as amended by No 49 of 2019), s 3 and Sch 4 item 3, by omitting " Global Infrastructure Hub Ltd ................... 50-40 " , effective 1 July 2025.]
(Repealed by No 12 of 2012)
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .
acute support packages for veterans and their families | ||
acute support packages for veterans and their families | 52-185 | |
agricultural industry exit grants | ||
tobacco industry exit grants | 53-10 | |
copyright collecting societies | 51-43 | |
Coronavirus economic response payment | ||
certain payments in accordance with the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 | 53-25 | |
credit unions | ||
interest | 23G | |
defence | ||
Defence Force member, allowances | 51-5 | |
Defence Force member, compensation payments for loss of deployment allowance for warlike service | 51-5 | |
Defence Force Ombudsman recommendation, reparation payments and additional payments in relation to | 51-5 | |
F-111 Deseal/Reseal Ex-gratia Lump Sum Payments | 51-5 | |
Former Reserve Defence Force member, compensation payments for loss of pay and/or allowances | 51-5 | |
Reserve Defence Force member, pay and allowances | 51-5 | |
disasters | ||
2018 storms - relief payments | 51-125 | |
dividends or shares | ||
pooled development fund company dividend | 124ZM | |
pooled development fund company shares, income from sale of | 124ZN | |
education and training | ||
Apprenticeship Wage Top-Up payment, recipient of | 51-10 | |
bursary, educational allowance etc. | 51-10 and 51-35 | |
Commonwealth Trade Learning Scholarship, recipient of | 51-10 | |
CRAFT scheme, employer ' s income from | 51-10 | |
early completion bonuses for apprentices | 51-10 and 51-42 | |
Endeavour Awards, research fellowship under | 51-10 | |
Endeavour Executive Award | 51-10 | |
foreign student, scholarship and bursary to | 842-105 | |
full-time student, income from a scholarship, bursary, other educational allowance or educational assistance | 51-10 and 51-35 | |
isolated child, income for the provision of education of | 51-10 and 51-40 | |
secondary student, income for the provision of education of | 51-10 and 51-40 | |
Skills for Sustainability for Australian Apprentices payment, recipient of | 51-10 | |
Tools for Your Trade payment (under the program known as the Australian Apprenticeships Incentives Program), recipient of | 51-10 | |
family assistance | ||
additional child care subsidy | 52-150 | |
additional economic support payment 2020 or additional economic support payment 2021 | 52-150 | |
back to school bonus or single income family bonus | 52-150 | |
child care subsidy | 52-150 | |
clean energy advance | 52-150 | |
economic security strategy payment to families | 52-150 | |
economic support payment, first or second 2020 payment | 52-150 | |
ETR payment | 52-150 | |
ETR payment, payments under the scheme determined under Part 2 of Schedule 1 to the Family Assistance and Other Legislation Amendment (Schoolkids Bonus Budget Measures) Act 2012 | 52-162 | |
families, payments to, under the scheme determined under Schedule 4 to the Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008 | 52-160 | |
family tax benefit | 52-150 | |
Household Stimulus Package Act (No. 2) 2009 , payments under scheme determined under Schedule 4 to the | 52-165 | |
single income family supplement | 52-150 | |
stillborn baby payment | 52-150 | |
financial arrangements | ||
gains related to exempt income | 230-30 | |
financial transactions | ||
pooled development fund company dividends | 124ZM | |
pooled development fund company shares, income from sale of | 124ZN | |
foreign aspects of income taxation | ||
approved overseas project, income from | 23AF | |
Australian-American Education Foundation, grant from | 51-10 | |
Commonwealth of Nations country officer, official salary and foreign income | 768-100 | |
consul and official staff member, official salary and foreign income | 768-100 | |
Defence Force member, foreign resident, pay and allowances of | 842-105 | |
Defence Force member, pay and allowances from being on eligible duty | 23AD | |
defence of Australia, overseas person ' s income from assisting in Australia ' s defence | 842-105 | |
diplomat and official staff member, official salary and foreign income | 768-100 | |
educational, scientific, religious or philanthropic society, income of a visiting representative of | 842-105 | |
expert, foreign resident, remuneration of | 842-105 | |
foreign society or association representative, income of | 842-105 | |
forex realisation gains, certain | 775-20 | |
government representative and members of the entourage, foreign resident, income of | 842-105 | |
OBU investment trusts for overseas charitable institutions | 121EL(2) | |
OBU off-shore investment trusts, income to which subsection 121D(6) applies | 121EL | |
overseas charitable institutions, income from OBUs | 121ELA(1) | |
overseas employment income, resident, income of | 23AG | |
persecution victim, payments to | 768-105 | |
press representative, foreign, income of | 842-105 | |
resistance fighter and victim of wartime persecution, payments to | 768-105 | |
United Nations, income from service with | 23AB | |
United States projects, income from approved overseasprojects | 23AA | |
[ foreign investment] (Repealed by No 78 of 2007 ) | ||
health | ||
Continence Aids Payment Scheme, payments under | 52-175 | |
interest | ||
judgement debt, personal injury | 51-57 | |
unclaimed money and property | 51-120 | |
[ life assurance ] (Repealed by No 89 of 2000) | ||
life insurance companies | Subdivision 320-B | |
National Disability Insurance Scheme | ||
NDIS amounts | 52-180 | |
non-cash benefits | ||
business benefit | 23L(2) | |
exempt fringe benefit | 23L(1A) | |
prizes | ||
Prime Minister ' s Literary Awards | 51-60 | |
Prime Minister ' s Prize for Australian History | 51-60 | |
Prime Minister ' s Prize for Science | 51-60 | |
resale royalty collecting societies | 51-45 | |
shipping | ||
income from shipping activities | 51-100 | |
[ mining] (Repealed by No 66 of 2003) | ||
[ small business retirement exemption] (Repealed by No 56 of 2010) | ||
social security or like payments | ||
ABSTUDY scheme, payment under | Subdivision 52-E | |
additional economic support payment 2020 or additional economic support payment 2021 under the Social Security Act 1991 | 52-10 | |
additional economic support payment 2020 or additional economic support payment 2021 under the Veterans ' Entitlements Act 1986 | 52-65 | |
Australian Victim of Terrorism Overseas Payment | 52-10 | |
52-172 | ||
carer adjustment payment | 53-10 | |
carers, 2005 one-off payment to, (carer payment related), 2005 one-off payment to carers (carer service pension related) or 2005 one-off payment to carers (carer allowance related) | 52-10 | |
carers, 2006 one-off payment to, (carer payment related), 2006 one-off payment to carers (wife pension related), 2006 one-off payment to carers (partner service pension related), 2006 one-off payment to carers (carer service pension related) or 2006 one-off payment to carers (carer allowance related) | 52-10 | |
carers, 2007 one-off payment to, (carer payment related), 2007 one-off payment to carers (wife pension related), 2007 one-off payment to carers (partner service pension related), 2007 one-off payment to carers (carer service pension related) or 2007 one-off payment to carers (carer allowance related) | 52-10 | |
carers, 2008 one-off payment to, (carer payment related), 2008 one-off payment to carers (wife pension related), 2008 one-off payment to carers (partner service pension related), 2008 one-off payment to carers (carer service pension related) or 2008 one-off payment to carers (carer allowance related) | 52-10 | |
carers, one-off payment to, (carer allowance related) or one-off payment to carers (carer payment related) | 52-10 | |
carers, payments to, under the scheme determined under Schedule 3 to the Family Assistance Legislation Amendment (More Help for Families - One-off Payments) Act 2004 | 52-10 | |
carer supplement | 52-10 | |
child disability assistance | Subdivision 52-A | |
clean energy payment under the Social Security Act 1991 | 52-10 | |
clean energy payment under the Veterans ' Entitlements Act 1986 | 52-65 | |
clean energy payment under the scheme prepared under Part VII of the Veterans ' Entitlements Act 1986 | 52-65 | |
clean energy payment under the Military Rehabilitation and Compensation Act 2004 | 52-114 | |
clean energy payment under the scheme determined under section 258 of the Military Rehabilitation and Compensation Act 2004 | 52-114 | |
Commonwealth education or training payment | Subdivision 52-F | |
cost of living payment 2022 under the Social Security Act 1991 | 52-10 | |
cost of living payment 2022 under the Veterans ' Entitlements Act 1986 | 52-65 | |
disability services payment | 53-10 | |
economic security strategy payment under the Social Security Act 1991 | 52-10 | |
economic support payment, first or second 2020 payment under the Social Security Act 1991 | 52-10 | |
economic support payment, first or second 2020 payment under the Veterans ' Entitlements Act 1986 | 52-65 | |
education entry payment supplement under the Social Security Act 1991 | 52-10 | |
energy assistance payment, one-off payment under the Social Security Act 1991 | 52-10 | |
energy assistance payment, one-off payment under the Veterans ' Entitlements Act 1986 | 52-65 | |
ETR payment, payments under the scheme determined under Part 2 of Schedule 1 to the Family Assistance and Other Legislation Amendment (Schoolkids Bonus Budget Measures) Act 2012 | 52-162 | |
farm household allowance under the Farm Household Support Act 2014 | Subdivision 52-A | |
Helping Children with Autism package, Outer Regional and Remote payment under | 52-170 | |
Household Stimulus Package Act (No. 2) 2009 , payments under the scheme determined under Schedule 4 to the | 52-165 | |
pension bonus and pension bonus bereavement payment | 52-10 and 52-65 | |
persecution victim, payments to | 768-105 | |
pharmaceutical supplement for Australian participants in British nuclear tests or in the British Commonwealth Occupation Force | Subdivision 52-CB | |
pharmaceutical supplement for Australian surgical-medical team members | Subdivision 52-CC | |
resistance fighter and victim of wartime persecution, payments to | 768-105 | |
Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008 , payments under the scheme determined under Schedule 4 to the | 52-160 | |
Social Security and Veterans ' Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007 , payments under a scheme determined under item 1 of Schedule 2 to the | 52-10 | |
Social Security and Veterans ' Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007 , payments under the scheme determined under Schedule 4 to the | 52-10 | |
Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008 , payments under a scheme determined under item 1 of Schedule 2 to the | 52-10 | |
Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008 , payments under the scheme determined under Schedule 4 to the | 52-10 | |
Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 , payments under the scheme determined under item 1 of Schedule 2 to the | 52-10 | |
Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 , payments under the scheme determined under Schedule 4 to the | 52-10 | |
Social Security Legislation Amendment (One-off Payments for Carers) Act 2005 , payments under the scheme determined under Schedule 2 to the | 52-10 | |
social security payments | Subdivision 52-A | |
training and learning bonus under the Social Security Act 1991 | 52-10 | |
travelling expenses for Australian participants in British nuclear tests or in the British Commonwealth Occupation Force | Subdivision 52-CB | |
travelling expenses for Australian surgical-medical team members | Subdivision 52-CC | |
veteran, Australian and United Kingdom, payment to | 53-20 | |
veteran, payment to | Subdivisions 52-B and 52-C | |
Veterans ' Entitlements Act 1986 , lump sum payment under section 198N of the | 52-65 | |
wounds and disability pension | 53-10 | |
see also welfare | ||
structured settlements and structured orders | ||
annuities and lump sums | Subdivisions 54-B , 54-C and 54-D | |
student | ||
see education and training | ||
superannuation and related business | ||
approved deposit fund, continuously complying fixed interest, income from 25 May 1988 deposits | 295-390 of the Income Tax (Transitional Provisions) Act 1997 | |
approved deposit fund, income from a grant of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 | 295-405 (table item 1) | |
approved deposit fund, non-reversionary bonuses on policies of life assurance | 295-335 (table item 1) | |
benefits from non-complying funds | 305-5 | |
pooled superannuation trust, income from constitutionally protected funds | 295-335 (table item 2) | |
pooled superannuation trust, income from current pension liabilities of complying superannuation funds | 295-400 | |
pooled superannuation trust, non-reversionary bonuses on policies of life assurance | 295-335 (table item 1) | |
superannuation fund, income from other assets used to meet current pension liabilities | 295-390 | |
superannuation fund, income from segregated current pensions assets | 295-385 | |
superannuation fund, non-reversionary bonuses on policies of life assurance | 295-335 (table item 1) | |
superannuation fund, regulated, income from a grant of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 | 295-405 (table item 1) | |
Territories Stolen Generations Redress Scheme | ||
Territories Stolen Generations Redress Scheme payments | 53-30 | |
United Nations | ||
United Nations Service, income from | 23AB | |
venture capital | ||
eligible venture capital investments, gain or profit from realisation of | 51-54 | |
eligible venture capital investments by ESVCLPs, income derived from | 51-52 | |
venture capital equity, gain or profit from realisation of | 51-55 | |
[ vice regal] (Repealed by No 97 of 2008 ) | ||
welfare | ||
Disaster recovery payments to special category visa (subclass 444) holders | 51-30 | |
maintenance payment | 51-30 and 51-50 | |
thalidomide payment - payment under the Support for Australia ' s Thalidomide Survivors program | 51-30 | |
thalidomide payment - payment by the Thalidomide Australia Fixed Trust | 51-30 | |
see also social security or like payments |
Note:
The following provisions of the Income Tax Assessment Act 1936 give rise to notional exempt income and not exempt income. For this reason the provisions do not appear in the lists of kinds of exempt income.
The provisions are: paragraphs 384(1)(b) and 385(1)(b) , subsection 402(2) and section 403 .
This Subdivision is a * Guide.
The provisions set out in the list make amounts non-assessable non-exempt income.
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .
alienated personal services income | ||
associate, non-deductible payment or obligation to | 85-20(3) | |
entitlements to a share of net income that is personal services income already assessable to an individual | 86-35(2) | |
payments by personal services entity or associate of personal services income already assessable to an individual | 86-35(1) | |
personal services entity, amounts of personal services income assessable to an individual | 86-30 | |
bonds | ||
see securities | ||
capital gains tax | ||
small business retirement exemption, payments made directly or indirectly to CGT concession stakeholder so company or trust complies with section 152-325 | 152-310 | |
cash flow boost | ||
payments in accordance with the Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020 | 59-90 | |
Coronavirus economic response | ||
certain payments in accordance with the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 | 59-95 | |
State and Territory grants to small business relating to the recovery from the coronavirus | 59-97 | |
Commonwealth small business support payments relating to the coronavirus | 59-98 | |
COVID-19 disaster payment | 59-96 | |
demutualisation of friendly society health or life insurers | ||
amounts related to issue, or transfer from lost policy holders trust, of demutualisation assets | 316-255 | |
payments received directly, or from lost policy holders trust, in exchange for cancellation or variation of interests under the demutualisation | 316-255 | |
demutualisation of private health insurers | ||
market value of shares and rights at time of issue | 315-310 | |
payments received in exchange for cancellation or variation of interests under the demutualisation | 315-310 | |
disasters | ||
2019-20 bushfires - payments for volunteer work with fire services | 59-55 | |
2019-20 bushfires - disaster relief payments and non - cash benefits | 59-60 | |
2019 floods - recovery grants | 59-85 | |
2019 floods - on-farm grant program | 59-86 | |
2021 floods and storms - recovery grants | 59-99 | |
Cyclone Seroja - recovery grants | 59-105 | |
dividends | ||
demerger dividends | 44(4) | |
later dividend set off against amount taken to be dividend | 109ZC(3) , 109ZCA(4) | |
electricity generation | ||
refund of large-scale generation shortfall charge | 59-100 | |
employment | ||
early retirement scheme payment, tax free amount of | 83-170 | |
employment termination payment | 82-10 , 82-65 , 82-70 | |
foreign termination payment | 83-235 , 83-240 | |
genuine redundancy payment, tax free amount of | 83-170 | |
unused long service leave payment, pre-16/8/78 period | 83-80 | |
see superannuation and sections 82-10A and 82-10C of the Income Tax (Transitional Provisions) Act 1997 | ||
environment | ||
water infrastructure improvement payments | 59-65 | |
farm-in farm-out arrangements | ||
rewards for providing exploration benefits | 40-1135 | |
financial arrangements | ||
gains related to non-assessable non-exempt income | 230-30 | |
firearms surrender arrangements | ||
compensation under | 59-10 | |
[ first home saver accounts] (Repealed by No 70 of 2015) | ||
foreign aspects of income taxation | ||
attributed controlled foreign company income, amounts paid out of | 23AI | |
attributed foreign investment fund income, amounts paid out of | 23AK | |
certain forex realisation gains | 775-25 | |
branch profits of Australian companies | 23AH | |
distributions of conduit foreign income | 802-20 | |
income derived by foreign residents in exclusive economic zone or on or above continental shelf | 768-110 | |
foreign equity distributions on participation interests | 768-5 | |
income derived by temporary residents | 768-910 | |
interest paid by temporary residents | 768-980 | |
managed investment trust withholding tax, amount subject to | 840-815 | |
labour mobility program withholding tax, amount subject to | 840-915 | |
superannuation fund, foreign, interest and dividend income of | 128B(3)(jb) | |
withholding tax, dividend royalty or interest subject to | 128D | |
GST | ||
GST payable on a taxable supply | 17-5(a) | |
increasing adjustments | 17-5(b) and (c) | |
investment manager regime | ||
IMR concessions | 842-215 | |
life insurance companies | Subdivision 320-B | |
mining | ||
withholding tax, payments to Indigenous persons and distributing bodies subject to | 59-15 | |
mutual receipts | ||
amounts that would be mutual receipts but for prohibition on distributions to members or issue of MCIs | 59-35 | |
National Rental Affordability Scheme | ||
payments made, and non-cash benefits provided, by a State or Territory governmental body in relation to participation in the National Rental Affordability Scheme | 380-35 | |
native title benefits | ||
native title benefits | 59-50 | |
non-cash benefits | ||
fringe benefits | 23L(1) | |
notional sale and loan | ||
arrangement payments a notional seller receives or is entitled to receive | 240-40 | |
luxury car leases, lease payments that the lessor receives or is entitled to receive | 242-40 | |
deemed loan treatment for financial benefits provided for tax preferred use of asset | 250-160 | |
[ offshore banking units] (Repealed by No 110 of 2021) | ||
related entities | ||
amounts from, where deduction reduced for | 26-35(4) | |
repayable amounts | ||
previously assessable amounts | 59-30 | |
rights to acquire shares or units | ||
market value of at time of issue | 59-40 | |
[ securities] (Repealed by No 47 of 2016) | ||
small business assets | ||
income arising from CGT event, company or trust owned asset continuously for 15 years | 152-110(2) | |
sovereign entities | Subdivision 880-C | |
[social security or like payments] (Repealed by No 145 of 2010) | ||
superannuation | ||
benefits generally | Divisions 301 to 306 | |
commutation of income stream, under 25 years | 303-5 | |
death benefits | 302-60 , 302-65 , 302-70 , 302-140 | |
departing Australia superannuation benefits | 301-175 | |
foreign superannuation funds, lump sum benefits | 305-60 , 305-65 , 305-70 | |
KiwiSaver schemes, contributions to complying superannuation funds from | 312-10 | |
KiwiSaver schemes, superannuation benefits paid from complying superannuation funds to | 312-15 | |
KiwiSaver schemes, superannuation benefits paid by Commissioner to | 312-20 | |
member benefits | 301-10 , 301-15 , 301-30 , 301-225 | |
release authorities, payments from | 303-15
303-20 |
|
roll-over superannuation benefits | 306-5 | |
superannuation lump sum for recipient having terminal medical condition | 303-10 | |
unclaimed money payment to government | 306-20 | |
[ tax bonus] (Repealed by No 32 of 2014) | ||
tax loss transfers | ||
consideration received by loss company from income company, generally | 170-25(1) | |
consideration received by loss company from income company, net capital loss | 170-125(1) | |
consideration received for transfer of tax losses relating to transitioned petroleum activities | 417-70 | |
temporary residents | ||
see foreign aspects of income taxation | ||
trading stock | ||
disposal outside ordinary course of business, amounts received upon | 70-90(2) | |
transfer of entitlements to deductions | ||
consideration received for transfer of entitlements to deductions relating to transitioned petroleum activities | 417-70 | |
trusts | ||
attributable income, amounts representing | 99B(2A) | |
family trust distribution tax, amounts subject to | 271-105(3) in Schedule 2F | |
windfall amounts | ||
business franchise fees, refund of when invalid | 59-20 | |
State tax on Commonwealth place, refund of when invalid | 59-25 | |
withholding taxes | ||
see foreign aspects of income taxation and mining |
[CCH Note: Cyclone Larry and Cyclone Monica
No 80 of 2006, s 3 and Sch 2, contained the following provisions.
]Schedule 2 - Non-assessable, non-exemptincome relating to Cyclone Larry
1 Certain Commonwealth payments relating to Cyclone Larry are non-assessable, non-exempt income
(1)
Each of the following payments that you receive from the Commonwealth in your 2005-06 or 2006-07 income year is not assessable income and is not exempt income:
(a) a payment associated with what is known as the Cyclone Larry Business Assistance Fund and made because your business was adversely affected by Cyclone Larry;
(b) a payment known as fuel excise relief and connected with your use of fuel to generate electricity for your business while supply of electricity through the grid to your business was disrupted as a result of Cyclone Larry.
(c) a payment associated with what is known as the Cyclone Larry Business Assistance Fund, or with what is known as the Cyclones Monica and Larry Business Assistance Fund, and made because your business was adversely affected by flooding due to the combined impacts of Cyclones Monica and Larry.Note:
This item does not deal with payments of income support to farmers and small business owners affected by Cyclone Larry or Cyclone Monica that are rebatable benefits under section 160AAA of the Income Tax Assessment Act 1936.
(2)
A term used in this item and in the Income Tax Assessment Act 1997 has the same meaning in this item as it has in that Act.
This Division is a * Guide.
The provisions set out in the table contain rules about specific types of deduction.
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .
accrued leave transfer payments | 26-10 | |
advance expenditure | ||
generally | 82KZL to 82KZO | |
avoidance arrangements | 82KJ | |
when deductible | 82KZM to 82KZN | |
Australian apprenticeship support loan | ||
payment made to reduce a debt to the Commonwealth under the Australian Apprenticeship Support Loans Act 2014 , no deduction unless provided as fringe benefit | 26-20 | |
[ averaging of incomes] (Omitted by No 46 of 1998) | ||
bad debts | ||
deduction reduced because of forgiveness of debt if debtor and creditor are companies under common ownership and agree on the reduction | 245-90 | |
general | 25-35 , 63F | |
companies | Subdivisions 165-C , 166-C and 175-C | |
debt/equity swaps | 63E , 63F , 709-220 | |
deduction of a debt that used to be owed to a member of a consolidated group or MEC group by an entity that used to be a member of the group | Subdivisions 709-D and 719-I | |
money lenders, listed country branches, no deduction for | 63D | |
see also losses | ||
balancing adjustment | ||
see buildings, capital allowances, industrial property, R & D and tax exempt entities | ||
banks | ||
foreign banks, Australian branches of | 160ZZVA to 160ZZZJ | |
boats | ||
deferral of deductions | 26-47 | |
borrowing expenses | 25-25 | |
bribes to foreign public officials | 26-52 | |
bribes to public officials | 26-53 | |
buildings | ||
income producing buildings, capital allowances | Division 43 | |
see also heritage conservation work | ||
capital allowances | ||
generally | Division 40 | |
balancing adjustments | 40-285(2) , 40-370 | |
business related costs | 40-880 | |
electricity and telephone lines | 40-645 | |
environmental protection activities | 40-755 | |
exploration or prospecting | 40-80(1) , 40-730 | |
in-house software | 40-335 , 40-455 | |
intellectual property | Subdivisions 40-B and 40-I | |
IRUs | Subdivision 40-B | |
landcare operations | 40-630 | |
low-value and software development pools | Subdivision 40-E | |
mining and quarrying | Subdivision 40-H and Subdivision 40-I | |
new business investment, additional deduction | Division 41 | |
Petroleum Resource Rent Tax | 40-750 | |
project pools | 40-830 , 40-832 | |
reducing deductions | 40-25 , 40-27 , 40-290 and 40-291 | |
spectrum licences | Subdivision 40-B | |
tax preferred use of asset | Division 250 | |
telecommunications site access rights | Subdivision 40-B | |
trees in carbon sink forests | Subdivision 40-J | |
water facilities, horticultural plants, fodder storage assets and fencing assets | Subdivision 40-F | |
capital gains | ||
no deduction for an amount that would otherwise be deductible only because a net capital gain is included in assessable income | 51AAA | |
small business retirement exemption, no deduction for payments made directly or indirectly to CGT concession stakeholder so company or trust complies with section 152-325 | 152-310 | |
see also foreign residents | ||
capital loss | ||
net capital loss, no deduction for | 102-10 | |
net capital loss, transfer within company group | Subdivision 170-B | |
car disposal | ||
see capital allowances | ||
car expenses | ||
generally | Division 28 | |
" cents per kilometre " method | Subdivision 28-C | |
" log book " method | Subdivisions 28-F and 28-G | |
substantiation of car expenses | Division 900 | |
see also transport expenses | ||
car expenses of employee | ||
employee ' s car expenses where car provided by employer can be used for private purposes, no deduction for | 51AF | |
carried interests | ||
carried interests, no deduction for | 118-21 | |
car parking | ||
employee ' s car parking expenses, no deduction for | 51AGA | |
children ' s income | ||
generally | 102AA to 102AH | |
taxable income of a child, deductions taken into consideration in calculating | 102AD | |
[ clean energy] (Repealed by No 83 of 2014) | ||
club fees | ||
club fees, no deduction for | 26-45 | |
see also subscriptions to associations | ||
Commonwealth places windfall tax | 26-17 | |
companies, co-operative and mutual | ||
generally | 117 to 121 | |
distributions of assessable income | 120 | |
companies, private | ||
excessive payments to shareholders directors and associates, reduced deduction | 109 | |
conservation covenants | Division 31 | |
consolidated groups and MEC groups | ||
assets in relation to Division 230 financial arrangement | 701-61(4) | |
controlled foreign companies | ||
generally | 316 to 468 | |
bad debts | 399A | |
decline in value of depreciating assets | 398 | |
finance share dividends | 394 | |
taxes paid | 393 | |
convertible notes | ||
see interest | ||
copyrights | ||
expenditure in obtaining registration | Subdivisions 40-B and 40-I | |
COVID-19 | ||
expenditure on COVID-19 tests | 25-125 | |
cross staple arrangements | ||
rent from land investment | 25-115 , 25-120 | |
currency exchange gains and losses | ||
see foreign exchange | ||
death of timber owner | ||
see timber | ||
debt interests | ||
certain returns in respect of debt interests | 25-85 | |
depreciation | ||
see capital allowances | ||
designs | ||
expenditure in obtaining or extending registration | Subdivisions 40-B and 40-I | |
disposal of depreciating assets | ||
see capital allowances | ||
dividends | ||
dividends including LIC capital gain component | 115-280 | |
franking credits, companies and foreign residents | 207-95(2) , 207-95(3) , 220-405(3) | |
franking credits, pooled development funds (PDFs) | 124ZM | |
non-share equity interests, no deduction for return in respect of | 26-26 | |
unfranked non-portfolio dividends | 46FA | |
education expenses | ||
Higher Education Contribution Scheme, no deduction unless provided as fringe benefit | 26-20 | |
see also overseas debtors repayment levy | ||
see also student start-up loans | ||
see also VET student loans | ||
election expenses | ||
Federal and State Parliament election expenses | 25-60 , 25-70 | |
local government election expenses, limited deduction for | 25-65 , 25-70 | |
electricity connections | ||
see capital allowances | ||
embezzlement | ||
see theft | ||
employees | ||
labour mobility programs, delayed deduction for salary, wages etc. paid to employees under program until labour mobility program withholding tax payable has been paid | 26-25A | |
pensions, gratuities or retiring allowances for ex-employees | 25-50 | |
see also shares | ||
entertainment | ||
expenditure, no deduction for some | Division 32 | |
meal entertainment, calculation of deductible amount | 51AEA to 51AEC | |
environment | ||
see capital allowances | ||
excess non-concessional contributions tax | ||
no deduction | 26-75 | |
exploration and prospecting | ||
see capital allowances | ||
family | ||
no deduction for maintaining spouse or child | 26-40 | |
[ family tax benefit] (Repealed by No 56 of 2010) | ||
farm management deposits | ||
see primary production | ||
[ film income] (Repealed by No 164 of 2007) | ||
film licensed investment companies (FLICs) | ||
see shares | ||
financial arrangements | ||
losses from | 230-15(2) and (3) | |
see also borrowing expenses, interest, leases and securities | ||
foreign exchange | ||
losses | 775-30 | |
foreign financial entities ' Australian permanent establishments | ||
generally | Part IIIB | |
thin capitalisation | Subdivision 820-FB | |
transfer of losses | Subdivisions 170-A and 170-B | |
[ foreign income] (Repealed by No 143 of 2007 ) | ||
[ foreign investment funds (FIFs)] (Repealed by No 114 of 2010) | ||
[ foreign life assurance policies] (Repealed by No 114 of 2010) | ||
[ foreign residents] (Repealed by No 79 of 2007 ) | ||
[ foreign tax credits] (Repealed by No 143 of 2007 ) | ||
forestry managed investment schemes | ||
payments under scheme | 394-10(1) | |
franchise fees windfall tax | 26-15 | |
freight | ||
freight for shipped goods | 135A | |
fringe benefits | ||
contributions for private component, no deduction for | 51AJ | |
employee ' s car expenses where car provided by employer can be used for private purposes, no deduction for | 51AF | |
employee ' s car parking expenses, no deduction for | 51AGA | |
expense payment fringe benefits, reduced deduction | 51AH | |
general insurance companies and companies that self insure | ||
claims paid | 321-25 and 321-95 | |
increase in value of adjusted liability for incurred claims | 321-15 | |
increase in value of adjusted liability for remaining coverage | 321-55 | |
increase in value of outstanding claims liability | 321-85 | |
gifts | ||
general | Division 30 | |
limit on deduction | 26-55 | |
see also tax avoidance schemes | ||
[ grape vines] (Repealed by No 129 of 2004) | ||
[ GST - acquiring or upgrading plant to meet GST obligations etc] (Repealed by No 77 of 2001) | ||
horticultural plants | ||
see capital allowances | ||
higher education assistance | 26-20 | |
hybrid mismatch rules | ||
disallowing of deductions | Division 832 | |
illegal activities | 26-54 | |
income equalisation deposits | ||
see primary production | ||
industrial property | ||
see intellectual property and R & D | ||
infrastructure | ||
see tax losses | ||
[ insurance and annuity business] (Repealed by No 101 of 2004) | ||
insurance with non-residents | ||
generally | 141 to 148 | |
insurance premiums, no deduction unless arrangement to pay tax |
|
|
reinsurance, no deduction for resident carrying on insurance business in Australia for reinsurance premiums paid to a non-resident | 148 | |
intellectual property | ||
see capital allowances | ||
interest | ||
convertible notes, interest on, generally | 82L to 82T | |
foreign residents, debt creation involving, generally | 159GZY to 159GZZF | |
foreign residents, delayed deduction for interest paid to until withholding tax payable has been paid | 26-25 | |
life assurance premiums, interest etc. on loans to finance, no deduction for | 26-85 | |
superannuation contributions, interest etc. on loans to finance, no deduction for | 26-80 | |
underpayment or late payment of tax, interest for | 25-5 | |
international agreements | ||
see transfer pricing | ||
international profit shifting | ||
see transfer pricing | ||
investment company | ||
see shares | ||
IRUs | ||
see capital allowances | ||
land | ||
land degradation, see primary production vacant land, limit on deduction | 26-102 | |
[ land degradation] (Repealed by No 95 of 2019) | ||
lease document expenses | 25-20 | |
lease, authority, licence, permit or quota | ||
expenditure to terminate | 25-110 | |
leases | ||
finance leases and arrangements, use of property if end-user an exempt public body or use outside Australia to produce exempt income | 159GE to 159GO | |
leases of assets being put to tax preferred use | Division 250 | |
leveraged arrangements, property used:
• other than to produce assessable income; or • by a non-resident outside Australia; or • by a previous owner |
51AD | |
payment for failure to comply with lease obligation to repair premises | 25-15 | |
leases of luxury cars | ||
accrual amounts | 242-35 | |
adjustment amounts (lessee) | 242-70 | |
adjustment amounts (lessor) | 242-65 | |
lease payments not deductible | 242-55 | |
payments to acquire car not deductible | 242-85 | |
leave payments | ||
accrued leave transfer payments | 26-10 | |
no deduction for leave payments until paid | 26-10 | |
leisure facilities | ||
no deduction for | 26-50 | |
[ life assurance companies ] (Repealed by No 89 of 2000) | ||
life insurance companies | Subdivision 320-C | |
limited recourse debt | ||
later payments | 243-45 | |
later payments (replacement debt) | 243-50 | |
loans | ||
see borrowing expenses, interest and securities | ||
losses | ||
foreign exchange | 775-30 | |
profit-making undertaking or scheme | 25-40 | |
property sale | 25-40 | |
traditional securities, loss on disposal or redemption of | 70B | |
see also tax losses | ||
managed investment trusts | ||
losses from carried interests | 275-200(4) | |
management and investment company shares | ||
see shares | ||
membership of associations | ||
see subscriptions to associations | ||
mining | ||
Laminaria and Corallina decommissioning levy | 26-96 | |
see also capital allowances | ||
misappropriation | ||
by employee or agent | 25-47 | |
mortgage | ||
expenses of discharging a mortgage | 25-30 | |
motor vehicles | ||
see car expenses and leases | ||
National Disability Insurance Scheme | ||
National Disability Insurance Scheme expenditure | 26-97 | |
non-cash transactions | ||
non-cash business benefits | 51AK | |
non-cash consideration, money value deemed to have been paid or given | 21 | |
non-commercial business activities | ||
deferral of non-commercial losses | Division 35 | |
non-resident trust estates | ||
generally | 102AAA to 102AAZG | |
modified application of depreciation provisions | 102AAY | |
modified application of trading stock provisions | 102AAZ | |
no deductions allowable under Division 36 | 102AAZC | |
notional sales and loans | ||
adjustment amounts (lessee) | 240-110(1) | |
adjustment amounts (lessor) | 240-105(3) | |
arrangement payments, no deduction for | 240-55 | |
notional interest | 240-50 , 250-155 | |
deemed loan treatment for financial benefits provided for tax preferred use of asset | Subdivision 250-C | |
payments to acquire property, no deduction for | 240-85 | |
offshore banking units | ||
generally | 121B to 121EL | |
overseas debtors repayment levy | ||
payment made to reduce a liability to overseas debtors repayment levy under the Student Loans (Overseas Debtors Repayment Levy) Act 2015 , no deduction unless provided as fringe benefit | 26-20 | |
partnerships | ||
foreign hybrid loss exposure adjustment | 830-50 | |
losses, partner ' s share of partnership loss | 90 , 92 | |
patents | ||
expenditure relating to grant of patents, etc. | Subdivisions 40-B and 40-I | |
penalties | ||
no deduction for penalties | 26-5 | |
personal services income | ||
alienated personal services income | Subdivision 86-B | |
general | Division 85 | |
[ petroleum prospecting and mining] (Repealed by No 77 of 2001) | ||
[ plant and articles] (Repealed by No 77 of 2001) | ||
political contributions and gifts | ||
denial of certain deductions | 26-22 | |
deductions for individuals | Subdivision 30-DA | |
pooled development funds (PDFs) | 124ZM to 124ZZD | |
[ pooled software] (Repealed by No 77 of 2001) | ||
prepaid expenditure | ||
see advance expenditure | ||
primary production | ||
farm management deposits | Division 393 | |
see also capital allowances and timber | ||
property | ||
arrangements relating to assets being put to tax preferred use | Division 250 | |
arrangements relating to use of property if end-user an exempt public body or use outside Australia to produce exempt income | 159GE to 159GO | |
leveraged arrangements, property used:
• other than to produce assessable income; or • by a non-resident outside Australia; or • by a previous owner |
51AD | |
sale of property, profit or loss | 82(2) | |
see also capital allowances and losses | ||
public trading trusts | ||
generally | 102M to 102T | |
qualifying securities | ||
see securities | ||
[ quarrying] (Repealed by No 77 of 2001) | ||
R & D | Division 355 | |
rates and land taxes | ||
premises used to produce mutual receipts | 25-75 | |
rebatable benefits | ||
no deduction for | 26-19 | |
[ regional headquarters (RHQs)] (Repealed by No 47 of 2016) | ||
registered emissions units | ||
expenditure incurred in becoming the holder of | 420-15 | |
expenditure incurred in ceasing to hold | 420-42 | |
excess of opening over closing value of | 420-45 | |
reimbursements | ||
expense payment fringe benefits, reduced deduction | 51AH | |
reinsurance | ||
see insurance with non-residents | ||
related entities (including relatives) | reduction of deduction for payment or liability to | 26-35 , 65(1B) and (1C) |
repairs | ||
general | 25-10 | |
repair covenants, payment for non-compliance with covenant to repair under lease | 25-15 | |
[ research & development] (Repealed by No 93 of 2011) | ||
roads | ||
see timber | ||
royalties | ||
royalty, no deduction for royalty paid to a foreign resident until the withholding tax payable has been paid | 26-25 | |
scientific research | ||
see R & D | ||
securities | ||
qualifying securities | 159GP to 159GZ | |
substituted securities | 23K | |
traditional securities, loss on disposal or redemption of | 70B | |
shares | ||
buy-backs | 159GZZZJ to 159GZZZT | |
cancellation of subsidiary ' s shares in holding company | 159GZZZC to 159GZZZI | |
employee share schemes, deduction for provider of ESS interests | Subdivision 83A-D | |
see also dividends and securities | ||
[ small-medium enterprises (SMEs)] (Repealed by No 23 of 2018) | ||
Software | ||
see capital allowances | ||
spectrum licences | ||
see capital allowances | ||
State or Territory bodies (STBs) | ||
body ceasing to be STB, some deductions not allowed | 24AW to 24AYA | |
student start-up loans | ||
payment made to reduce a debt to the Commonwealth under Chapter 2AA of the Social Security Act 1991 (student start-up loans), no deduction unless provided as fringe benefit | 26-20 | |
payment made to reduce a debt to the Commonwealth under Part 2 of the Student Assistance Act 1973 (ABSTUDY student start-up loans), no deduction unless provided as fringe benefit | 26-20 | |
subscriptions to associations | 25-55 | |
substantiation | ||
work, travel and car expenses | Division 900 | |
superannuation | ||
see insurance and annuity business and interest | ||
superannuation and related business | ||
generally | Part 3-30 | |
asset disposals | 295-85 | |
death or disability benefits, deduction for future service element | 295-470 | |
death or disability cover, premiums for | 295-465 | |
financial assistance levy | 295-490(1) (table item 3) | |
superannuation contributions surcharge | ||
no deduction | 26-60 | |
superannuation - deductibility of contributions | ||
generally | Division 290 | |
contributions for employees etc. | Subdivision 290-B | |
contributions to non-complying funds | sections 290-10 and 290-75 | |
first home super saver scheme re-contribution | section 290-168 | |
limit on deduction | 26-55 | |
no deduction under any other provision of the Act | section 290-10 | |
personal contributions | Subdivision 290-C | |
[ superannuation - employer contributions] (Repealed by No 15 of 2007) | ||
superannuation guarantee charge | ||
no deduction for | 26-95 | |
late contribution offset, no deduction for | 290-95 | |
superannuation supervisory levy | ||
late lodgment amount, no deduction for | 26-90 | |
tax agent ' s fees | ||
see tax related expenses | ||
tax avoidance schemes | ||
companies, use of tax losses or deductions to avoid tax | Division 175 | |
diverted assessable income | 121F to 121L | |
dividend stripping | 177E | |
gifts | 78A | |
imputation, manipulation of | 207-150(2) , 207-150(3) | |
prepaid outgoings to avoid tax | 82KJ | |
recouped expenditure | 82KH to 82KL | |
tax avoidance scheme, no deduction allowable where deduction the result of | 177A to 177G | |
trading stock | 70-20 , 52A | |
tax exempt entities | ||
treatment of losses and outgoings on becoming taxable | Schedule 2D | |
tax losses | ||
bad debts, companies | 165-120 | |
change of ownership or control of a company
generally |
Division 165 | |
for earlier income years | Subdivision 165-A | |
for income year of the change | Subdivision 165-B | |
designated infrastructure project entities | Division 415 | |
earlier income years | Division 36 | |
life insurance companies | Subdivision 320-D | |
pooled development funds | Subdivision 195-A | |
transfer between companies in same wholly-owned group | Subdivision 170-A | |
tax preferred asset financing | ||
generally | Division 250 | |
denial of capital allowance deductions in relation to asset being put to tax preferred use | 250-145 | |
reduction in capital allowance deductions in relation to asset being put to tax preferred use | 250-150 | |
tax related expenses | 25-5 | |
telecommunications site access rights | ||
see capital allowances | ||
telephone lines | ||
see primary production | ||
[ termination payments surcharge] (Repealed by No 23 of 2018) | ||
theft | ||
by employee or agent | 25-45 | |
thin capitalisation | ||
disallowing of deductions | Division 820 | |
previously FRT disallowed amounts | 820-56 | |
timber | ||
death of owner of land carrying trees, deduction of the part of land cost attributable to trees | 70-120 | |
disposal of land carrying trees, deduction of the part of land cost attributable to trees | 70-120 | |
felling trees, deduction of cost of land attributable to trees felled or of cost of right to fell trees | 70-120 | |
see also capital allowances | ||
[ trade support loan] (Repealed by No 61 of 2023) | ||
trading ships | ||
see capital allowances | ||
trading stock | ||
Commissioner may determine whether consideration paid for chose in action is reasonable | 52A | |
excess of opening stock over closing value | 70-35(3) | |
expenditure deemed not to be of a capital nature | 70-25 | |
prepayments, when stock becomes trading stock on hand | 70-15 | |
see also tax avoidance schemes and timber | ||
traditional securities | ||
see securities | ||
training guarantee | ||
training guarantee charge, no deduction for | 51(7) | |
transfer pricing | ||
arm ' s length principle for cross-border conditions between entities | Subdivision 815-B | |
arm ' s length principle for permanent establishments | Subdivision 815-C | |
transport expenses | ||
incurred in travel between workplaces | 25-100 | |
travel expenses | ||
accompanying relatives, no deduction for some travel expenses | 26-30 | |
travel related to the use of residential premises as residential accommodation | 26-31 | |
see also substantiation | ||
trees in carbon sink forests | ||
see capital allowances | ||
trusts | ||
trust income, deductions considered in calculating | 95 to 102 | |
see also foreign residents , non-resident trust estates and public trading trusts | ||
uniforms | ||
non-compulsory uniforms | Division 34 | |
[ United Medical Protection Limited support payments] (Repealed by No 105 of 2019) | ||
uranium mining | ||
see mining | ||
VET student loans | ||
payment made to reduce a debt to the Commonwealth under Part 3A of the VET Student Loans Act 2016 (VETSL debts), no deduction unless provided as fringe benefit | 26-20 | |
water facilities | ||
improvements | 26-100 | |
see also capital allowances | ||
work expenses | ||
see substantiation | ||
work in progress | ||
payment of a work in progress amount | 25-95 |
[ CCH Note: S 12-5 will be amended by No 67 of 2024, s 3 and Sch 1 item 4, by inserting " financial product advice subsection 295-490(1) (table item 5) " at the end of the table item headed " superannuation and related business " , effective 1 October 2024 and applicable in relation to the 2019-20 income year and later income years.]
This Division is a * Guide.
The provisions set out in the list allow you a tax offset.
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .
Aboriginal study assistance | |
see social security and other benefit payments | |
annual leave | |
see leave payments | |
annuity | |
see superannuation | |
approved deposit funds (ADFs) | |
see dividends | |
attribution managed investment trusts | |
non-resident beneficiary 276-110 | |
averaging | |
see primary production | |
bonuses | |
see life assurance | |
child | |
increased tax payable under Part III Division 6AA, unreasonable
102AH
trust income 100(2) |
|
[ child/housekeeper] (Repealed by No 70 of 2015) | |
corporate unit trusts | |
see dividends | |
Cyclone Larry or Cyclone Monica income support payment | |
see social security and other benefit payments | |
defence force | |
members serving overseas 79B | |
dependants | |
invalid relative, invalid spouse or carer in receipt of carer benefit Subdivision 61-A | |
dividends | |
general 207-20(2) , 207-45 , 207-110(2) (c), 210-170(1) | |
early stage venture capital limited partnerships | |
contributions to ESVCLPs Subdivision 61-P | |
[ education expenses] (Repealed by No 50 of 2012) | |
[ drought relief] (Repealed by No 179 of 1997) | |
employment termination | |
employment termination payments
82-10
,
82-70
see leave payments, superannuation and sections 82-10A and 82-10C of the Income Tax (Transitional Provisions) Act 1997 |
|
[ entrepreneurs ' tax offset] (Repealed by No 23 of 2012) | |
Equine Workers Hardship Wage Supplement Payment | |
see social security and other benefit payments | |
[ exceptional circumstances relief] (Repealed by No 13 of 2014) | |
exploration for minerals | |
junior minerals exploration incentive Subdivision 418-B | |
[ farm help income support] (Repealed by No 13 of 2014) | |
[ farm household support] (Repealed by No 97 of 2008 ) | |
film | |
Division 376 | |
[ films] (Repealed by No 143 of 2007 ) | |
foreign income tax | |
foreign income tax paid, tax offset for Division 770 | |
franking deficit tax | |
liabilities to pay 205-70 | |
franked dividends | |
see dividends | |
hardship | |
see child | |
[ housekeeper] (Repealed by No 70 of 2015) | |
housing | |
National Rental Affordability Scheme Division 380 | |
imputation | |
see dividends and franking deficit tax | |
[ infrastructure] (Repealed by No 4 of 2018) | |
innovation companies | |
certain shares issued to early stage investors Subdivision 360-A | |
inter-corporate dividends | |
see dividends | |
interest | |
tax paid on by company 127 | |
interim income support payment | |
see social security and other benefit payments | |
invalid relative | |
see dependants | |
[ land transport facilities borrowings] (Repealed by No 41 of 2011) | |
leave payments | |
unused annual leave payment
83-15
unused long service leave payment 83-85 see employment termination |
|
legal disability | |
see trusts | |
life assurance | |
bonus, receipt of 160AAB | |
life insurance company | |
subsidiary joining consolidated group 713-545(5) | |
long service leave | |
see leave payments | |
losses | |
loss carry back Division 160 | |
low income earner | |
aged or pensioner beneficiary, trustee liable to be assessed for beneficiary
'
s share of net income of trust estate
160AAAB
aged person or pensioner 160AAAA general Subdivision 61-D |
|
lump sum income arrears | |
receipt of 159ZRA , 159ZRB , Subdivision 61-L | |
[ mature age workers] (Repealed by No 20 of 2015) | |
[ medical expenses] (Repealed by No 11 of 2014) | |
non-resident beneficiary | |
see trusts | |
non-resident trust estate | |
see trusts | |
overseas defence force service | |
see defence force | |
[ overseas tax] (Repealed by No 143 of 2007 ) | |
[ parent/parent-in-law] (Repealed by No 70 of 2015) | |
partnerships | |
see dividends , housing and small business entities | |
pension | |
see social security and other benefit payments | |
pooled superannuation trusts (PSTs) | |
see dividends | |
primary production | |
averaging of income, trustees 156 averaging of tax liability, individuals 392-35(2) farm household allowance see social security and other benefit payments interim income support payments see social security and other benefit payments |
|
private health insurance Subdivision 61-G | |
public trading trust | |
see dividends | |
public unit trust | |
see dividends | |
R & D Division 355 | |
[ rebatable ETP annuity] (Repealed by No 15 of 2007) | |
[ research and development] (Repealed by No 93 of 2011) | |
residents of isolated areas | |
see zone | |
[ restart income support] (Repealed by No 144 of 2000) | |
[ savings and investment income] (Repealed by No 60 of 1999) | |
[ shipping income] (Repealed by No 143 of 2007 ) | |
[ sickness benefits] (Repealed by No 26 of 2018) | |
small business | |
small business income Subdivision 328-F | |
[ small business entities] (Repealed by No 23 of 2012) | |
social security and other benefit payments
|
|
Aboriginal study assistance scheme
160AAA(3)
children, assistance for isolated 160AAA(3) Cyclone Larry or Cyclone Monica income support payment 160AAA(3) Disaster income support allowance for special category visa (subclass 444) holders 160AAA(3) Equine Workers Hardship Wage Supplement Payment 160AAA(3) farm household allowance under the Farm Household Support Act 2014 see unemployment and other benefit payments under the Social Security Act 1991 interim income support payment 160AAA(3) pension, social security pension and veteran ' s pension 160AAAA textile, clothing and footwear allowance 160AAA(3) unemployment and other benefit payments under the Social Security Act 1991 160AAA(3) |
|
[ sole parent] (Repealed by No 83 of 1999) | |
[ spouse] (Repealed by No 70 of 2015) | |
superannuation | |
generally
Divisions
301
and
302
associated earnings on non-concessional contributions Subdivision 292-B spouse contributions Subdivision 290-D death benefits 302-75 , 302-85 , 302-145 excess concessional contributions 291-15(b) first home super saver scheme 313-25 member benefits 301-20 , 301-25 , 301-35 , 301-40 , 301-95 , 301-100 , 301-105 , 301-115 TFN quoted to superannuation or RSA provider after no-TFN contributions tax paid 295-675 veterans ' invalidity pensions Subdivision 301-F |
|
[ superannuation funds] (Repealed by No 15 of 2007) | |
[ tax credit] (Repealed by No 143 of 2007 ) | |
termination payments | |
see employment termination, leave payments and superannuation | |
trustee | |
see dividends , low income earner and trusts | |
trusts | |
beneficiary in a foreign trust
98B
non-resident beneficiary 98A(2)(a) trust income of beneficiary with legal disability 100(2) trust income (modifications for special disability trusts) 95AB(5) see also dividends , housing and small business entities |
|
United Nations forces | |
salary, wages and allowances from service as a member of 23AB(7) | |
unemployment benefits | |
see social security and other benefit payments |
|
unit trusts | |
see dividends | |
[ water] (Repealed by No 84 of 2013) | |
winding-up of non-resident trust estates | |
see trusts | |
withholding payments | |
made by companies to Australian seafarers Subdivision 61-N | |
zone | |
residents of isolated areas 79A |