Income Tax Assessment Act 1997
These all form part of this Act:
950-100(2)
The asterisks used to identify defined terms form part of this Act. However, if a term is not identified by an asterisk, disregard that fact in deciding whether or not to apply to that term a definition or other interpretation provision.
SECTION 950-105 950-105 What does not form part of this Act
These do not form part of this Act:
A Guide consists of:
(a) sections under a heading indicating that what follows is a Guide to a particular Subdivision, Division etc.; or
(b) a Subdivision, Division or Part that is identified as a Guide by a provision in the Subdivision, Division or Part.
Hide history note950-150(2)
Guides form part of this Act, but they are kept separate from the operative provisions. In interpreting an operative provision, a Guide may only be considered:
(a) in determining the purpose or object underlying the provision; or
(b) to confirm that the provision's meaning is the ordinary meaning conveyed by its text, taking into account its context in the Act and the purpose or object underlying the provision; or
(c) in determining the provision's meaning if the provision is ambiguous or obscure; or
(d) in determining the provision's meaning if the ordinary meaning conveyed by its text, taking into account its context in the Act and the purpose or object underlying the provision, leads to a result that is manifestly absurd or is unreasonable.
Division 960 - General Subdivision 960-B - Utilisation of tax attributes
None of the following can be * utilised, to the extent it has already been utilised:
(a) a * tax loss;
(b) a * net capital loss;
(c) * net exempt income.
Utilisation of losses
960-20(2)
A * tax loss is utilised to the extent that:
(a) it is deducted from an amount of assessable income or * net exempt income; or
(b) it is reduced by applying a * total net forgiven amount; or
(c) it is *carried back.
960-20(3)
A * net capital loss is utilised to the extent that:
(a) it is applied to reduce an amount of * capital gains; or
(b) it is reduced by applying a * total net forgiven amount.
Utilisation of net exempt income
960-20(4)
* Net exempt income for an income year is utilised to the extent that:
(a) it is subtracted:
(i) from deductions; or
in determining a * tax loss for the income year; or
(ii) under subsection 268-60(4) in Schedule 2F to the Income Tax Assessment Act 1936 or subsection 165-70(4) or 175-35(4) of this Act;
(b) because of it, the extent to which a tax loss can be deducted in that income year is reduced; or
(c) because of it, an amount is reduced under subsection 35-15(2) (about deferral of deductions from non-commercial business activities); or
(d) because of it, a quarantined amount is reduced under subsection 26-47(8) ; or
(e) it is reduced under subsection 65-35(3) because of a * tax offset carried forward; or
(f) because of it, an amount is reduced under step 2 of the method statement in subsection 160-10(2) (which is a step in calculating a loss carry back tax offset component).
The objects of this Subdivision are as follows:
(a) to set out a basic rule requiring an amount in a *foreign currency to be translated into an Australian dollar amount (the basic rule is subject to the functional currency rules in Subdivision 960-D and to certain specific exclusions);
(b) to ensure that the rules for identifying the exchange rate for the translation of a foreign currency amount into Australian dollars:
(i) reflect an appropriate prevailing exchange rate; and
(ii) take into account, as appropriate, commercial practices for the translation of foreign currency amounts into Australian dollars.
For the purposes of this Act, an amount in a *foreign currency is to be translated into Australian currency.
Examples of an amount
960-50(2)
The following are examples of an amount: (a) an amount of *ordinary income; (b) an amount of an expense; (c) an amount of an obligation; (d) an amount of a liability; (e) an amount of a receipt; (f) an amount of a payment; (g) an amount of consideration; (h) a value.
960-50(3)
The amounts set out in paragraphs (2)(b) to (h) may be amounts on revenue account, capital account or otherwise.
Amounts that are elements in the calculation of other amounts
960-50(4)
In applying this section: (a) first, translate any amounts that are elements in the calculation of other amounts (except *special accrual amounts); and (b) then, calculate the other amounts.
Special accrual amounts
960-50(5)
In applying this section: (a) calculate a *special accrual amount without translation; and (b) then, translate the special accrual amount.
Special translation rules
960-50(6)
The table has effect:
| Special translation rules | ||
| Item | In this case... | this is the result... |
| 1 | forex realisation event 4 happens when you cease to have an obligation, or a part of an obligation, to pay *foreign currency, and neither of subparagraphs 775-55(1)(b)(ii) and (iii) applies | for the purposes of section 775-55, the amount of the obligation, or the part of the obligation, at the tax recognition time (see subsection 775-55(7)) is to be translated to Australian currency at the exchange rate applicable at that time. |
| 2 | cost of a *depreciating asset | (a) if you incur an obligation in return for your starting to hold the asset, and the obligation is not satisfied before you begin to hold the asset (worked out under Division 40) - the cost of the asset is to be translated to Australian currency at the exchange rate applicable when you begin to hold the asset; or |
| (b) if you incur an obligation in return for your starting to hold the asset, and the obligation is satisfied before you begin to hold the asset (worked out under Division 40) - the cost of the asset is to be translated to Australian currency at the exchange rate applicable when the obligation is satisfied. | ||
| 3 | value of an item of *trading stock on hand at the end of an income year, where you have elected to use its *cost | the value is to be translated to Australian currency at the exchange rate applicable at the time when the item became on hand. |
| 4 | value of an item of *trading stock on hand at the end of an income year, where you have elected to use: | the value is to be translated to Australian currency at the exchange rate applicable at the end of the income year. |
| (a) its market selling value; or | ||
| (b) its replacement value | ||
| 5 | a transaction or event that:
(a) involves an amount of money or the *market value of other property; and (b) is relevant for the purposes of Part 3-1 or 3-3; to the extent to which the amount or value is relevant for the purposes of Part 3-1 or 3-3 |
the amount or value is to be translated, for the purposes of Part 3-1 or 3-3, to Australian currency at the exchange rate applicable at the time of the transaction or event. |
| 6 | an amount of *ordinary income | (a) if the amount is received at or before the time when it is *derived - the amount is to be translated to Australian currency at the exchange rate applicable at the time of receipt; or |
| (b) in any other case - the amount is to be translated to Australian currency at the exchange rate applicable when it is derived. | ||
| 7 | an amount of *statutory income (other than an amount included in assessable income under Division 102) | (a) if the amount is received at or before the time when the requirement first arose to include it in your assessable income - the amount is to be translated to Australian currency at the exchange rate applicable at the time of receipt; or |
| (b) in any other case - the amount is to be translated to Australian currency at the exchange rate applicable at the time when the requirement first arose to include it in your assessable income. | ||
| 8 | an amount that you deduct (other than under Division 40) | (a) if the amount is paid at or before the time when it became deductible - the amount is to be translated to Australian currency at the exchange rate applicable at the time of payment; or |
| (b) in any other case - the amount is to be translated to Australian currency at the exchange rate applicable at the time when it became deductible. | ||
| 9 | an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company ' s *production expenditure on a *film; or (b) the total of the company ' s *qualifying Australian production expenditure on a film; or (c) the company ' s *total film expenditure on a film; to the extent to which the amount is relevant for the purposes of issuing a certificate under section 376-20 or 376-65 |
the amount is to be translated to Australian currency at the exchange rate applicable at the time when principal photography commences or production of the animated image commences. |
| 9A | an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company ' s *production expenditure on a *film; or (b) the total of the company ' s *qualifying Australian production expenditure on a film; to the extent to which the amount is relevant for the purposes of issuing a certificate under section 376-45 |
the amount is to be translated to Australian currency at the exchange rate applicable when *post, digital and visual effects production for the film commences. |
| 9B | subject to item 9C, an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company ' s *production expenditure on a *film; or (b) the total of the company ' s *qualifying Australian production expenditure on a film; or (c) the company ' s *total film expenditure on a film; to the extent to which the amount is relevant for the purposes of calculating an amount of a *tax offset under section 376-15, 376-40 or 376-60 |
the amount is to be translated to Australian currency at the average of the exchange rates applicable from time to time during the period that qualifying Australian production expenditure is incurred on the film. |
| 9C | an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company ' s *production expenditure on a *film; or (b) the total of the company ' s *qualifying Australian production expenditure on a film; or (c) the company ' s *total film expenditure on a film; to the extent to which the total of the company ' s qualifying Australian production expenditure on a film is less than $15 million and the amount is relevant for the purposes of calculating an amount of a *tax offset under section 376-60 |
the amount is to be translated to Australian currency at the exchange rate applicable at the time when expenditure is incurred on the film |
| 9D | an amount that is relevant for the purposes of quantifying a company
'
s *qualifying Australian development expenditure on a *digital game incurred in *completing the game to the extent to which the amount is relevant for the purposes of:
(a) a certificate under subsection 378-25(1) (completion certificate) in relation to the game; or (b) a determination under section 378-30 in relation to such a certificate |
the amount is to be translated to Australian currency at the average of the exchange rates applicable from time to time during the period:
(a) starting at the earliest time that the company incurred *development expenditure on the game in *completing the game; and (b) ending at the earlier of: (i) the last time the company incurred development expenditure on the game in completing the game; and (ii) the time the company applies for the issue of a certificate under section 378-25(1) (completion certificate) in relation to the game. |
| 9E | an amount that is relevant for the purposes of quantifying a company
'
s *qualifying Australian development expenditure on a *digital game incurred in *porting the game to the extent to which the amount is relevant for the purposes of:
(a) a certificate under section 378-25(3) (porting certificate) in relation to the game; or (b) a determination under section 378-30 in relation to such a certificate |
the amount is to be translated to Australian currency at the average of the exchange rates applicable from time to time during the period:
(a) starting at the earliest time that the company incurred *development expenditure on the game in *porting the game; and (b) ending at the earlier of: (i) the last time the company incurred development expenditure on the game in porting the game; and (ii) the time the company applies for the issue of a certificate under subsection 378-25(3) (porting certificate) in relation to the game. |
| 9F | an amount that is relevant for the purposes of quantifying a company
'
s *qualifying Australian development expenditure on a *digital game or games incurred in an income year on the *ongoing development of the games in the income year to the extent to which the amount is relevant for the purposes of:
(a) a certificate under subsection 378-20(5) (ongoing development certificate) in relation to the games for the income year; or (b) a determination under section 378-30 in relation to such a certificate |
the amount is to be translated to Australian currency at the average of the exchange rates applicable from time to time during the period:
(a) starting at the earliest time that the company incurred *development expenditure on the games in the income year on the *ongoing development of the games in the income year; and (b) ending at the earlier of: (i) the last time the company incurred development expenditure on the games in the income year on the ongoing development of the games in the income year; and (ii) the time the company applies for the issue of certificate under subsection 378-25(5) (ongoing development certificate) in relation to the games for the income year. |
| 10 | an amount that Division 12 of Part 2.5 in Schedule 1 to the Taxation Administration Act 1953 requires to be withheld from a payment | the amount is to be translated to Australian currency at the exchange rate applicable at the time when the amount is required to be withheld under that Division. |
| 11 | an amount of a receipt or a payment, where none of the above items apply | the amount is to be translated to Australian currency at the exchange rate applicable at the time of the receipt or payment. |
960-50(7)
Subsection (6) has effect subject to any modifications made by the regulations.
[ CCH Note: Regulation 960-50.01 and Sch 2 of the Income Tax Assessment Regulations modify the table by inserting item 12, which provides an alternative to the translation rules in the other items of the table.]
960-50(7A)
Despite subsections (6) and (7) , an amount that is relevant for the purposes of quantifying, for the purposes of section 960-565 , the *annual global income of an entity as shown in *global financial statements for the entity is to be translated into Australian currency at the average exchange rate applicable for the period for which the statements are prepared.
960-50(7B)
For the purposes of subsection (7A) : (a) the entity must obtain:
(i) all of the exchange rates that it will use to work out the average exchange rate; or
from one or more sources that are not *associates of the entity, and not the entity itself, or from one or more sources specified by the Commissioner in a notice to the entity; and (b) the entity must use the average exchange rate so worked out in translating into Australian currency any amount referred to in that subsection that is relevant to that period.
(ii) an average exchange rate that has been worked out for the period referred to in that subsection;
960-50(7C)
A notice under paragraph (7B)(a) is not a legislative instrument.
Regulations about translation
960-50(8)
An entity must comply with the regulations (if any) in translating an amount into Australian currency.
Note:
For example, the regulations could require the use of a particular translation method and require consistency in the use of the translation method.
960-50(9)
Regulations made for the purposes of subsection (8) may make provision in relation to a matter by applying, adopting or incorporating (with or without modifications) matter contained in any of the *accounting standards: (a) as in force or existing at a particular time; or (b) as in force or existing from time to time.
960-50(9A)
Regulations made for the purposes of subsection (8) do not apply to translating an amount into Australian currency under subsection
Operation of certain provisions unaffected
960-50(10)
This section does not affect the operation of the following provisions: (aa) section 220-110 (*maximum franking credit); (a) section 775-210 (notional loans under *facility agreements); (b) Subdivision 960-D (functional currency); (c) subsection 974-35(6) (valuation of financial benefits for the purposes of the debt/equity provisions).
(d) (Repealed by No 114 of 2010)
Section 960-50 applies to:
(a) a transaction, event or thing that:
(i) involves an amount in a *foreign currency; and
(ii) occurs on or after the applicable commencement date (within the meaning of Division 775 ); or
(b) a transaction, event or thing that:
(i) involves an amount in a foreign currency; and
to the extent to which the transaction, event or thing is relevant for the purposes of Division 775 ; or
(ii) occurs before the applicable commencement date (within the meaning of Division 775 );
(c) an amount that Division 12 of Part 2-5 in Schedule 1 to the Taxation Administration Act 1953 requires to be withheld from a payment, if the time when the amount is required to be withheld occurs on or after 1 July 2003; or
(d) a payment that Part 5-30 in Schedule 1 to the Taxation Administration Act 1953 requires to be reported, if the amount is paid on or after 1 July 2003.
Note:
For applicable commencement date , see section 775-155 .
Exceptions
960-55(2)
Despite subsection (1), section 960-50 does not apply to a transaction, event or thing that involves:
(a) an amount covered by subsection 775-165(1) ; or
(b) a right, or a part of a right, covered by subsection 775-165(2) ; or
(c) an obligation, or a part of an obligation, covered by subsection 775-165(4) .
Note:
Subsections 775-165(1) , (2) and (4) are transitional provisions relating to forex realisation events.
960-55(3)
(Repealed by No 15 of 2009 )
960-55(4)
(Repealed by No 15 of 2009 )
The net income of any of the following entities (or parts of entities) that keeps its accounts solely or predominantly in a particular foreign currency can be worked out in that currency, with the net amount being translated into Australian currency:
SECTION 960-59 960-59 Object of this Subdivision
The object of this Subdivision is, for the purposes of reducing compliance costs and reflecting commercial practice, to allow certain entities (or parts of entities) whose accounts are kept solely or predominantly in a particular *foreign currency (the functional currency ) to calculate their net incomes by reference to the functional currency.
The table has effect:
| Choosing to use a functional currency | |||
| Item | If you are: | you may choose to use the * applicable functional currency to... | with effect from the start of... |
| 1 | an Australian resident who is required to prepare financial reports under section 292 of the Corporations Act 2001 | work out so much of your taxable income or tax loss as is not subject to a choice made by you under any of the other items of this table | (a) if the choice you make under this item is a backdated startup choice (see section 960-65)
-
the income year in which you make the choice; or
(b) in any other case - the income year following the one in which you make the choice. |
| 2 | (a) an Australian resident carrying on an activity or business at or through an *overseas permanent establishment; or
(b) a foreign resident carrying on an activity or business at or through an *Australian permanent establishment |
work out the taxable income or tax loss derived from the activity or business carried on at or through the permanent establishment | (a) if the choice you make under this item is a backdated startup choice (see section 960-65)
-
the income year in which you make the choice; or
(b) in any other case - the income year following the one in which you make the choice. |
| 3 | an *offshore banking unit | work out your total assessable OB income (within the meaning of Division 9A of Part III of the Income Act Assessment Act 1936 ) and your total allowable OB deductions (within the meaning of that Division) | (a) if the choice you make under this item is a backdated startup choice (see section 960-65)
-
the income year in which you make the choice; or
(b) in any other case - the income year following the one in which you make the choice. |
| 4 | an attributable taxpayer (within the meaning of Part X of the Income Tax Assessment Act 1936 ) of a *controlled foreign company (CFC) | work out the *attributable income of the CFC | (a) if the choice you make under this item is a backdated startup choice (see section 960-65) - the CFC ' s *statutory accounting period in which you make the choice; or |
| (b) in any other case - the CFC ' s statutory accounting period following the one in which you make the choice. | |||
| 5 | a *transferor trust | work out your attributable income (within the meaning of Division 6AAA of Part III of the Income Tax Assessment Act 1936 ) | (a) if the choice you make under this item is a backdated startup choice (see section 960-65)
-
the income year in which you make the choice; or
(b) in any other case - the income year following the one in which you make the choice. |
Note:
The attributable income of a controlled foreign company is calculated separately for each attributable taxpayer - see section 381 of the Income Tax Assessment Act 1936 .
960-60(2)
A choice must be in writing.
960-60(3)
A choice under item 1 of the table in subsection (1) continues in effect until:
(a) a withdrawal of the choice takes effect (see section 960-90 ); or
(b) immediately after the end of the income year in which you cease to be subject to a requirement to prepare financial reports under section 292 of the Corporations Act 2001 ;
whichever happens first.
960-60(4)
A choice under item 2, 3, 4 or 5 of the table in subsection (1) continues in effect until a withdrawal of the choice takes effect (see section 960-90 ).
960-60(5)
(Repealed by No 15 of 2009 )
960-60(6)
(Repealed by No 15 of 2009 )
Subsection (2) applies if:
(a) you are a foreign resident; and
(b) a *CGT event happens in relation to a *CGT asset that is an *indirect Australian real property interest for you; and
(c) the sole or predominant currency in which you keep your accounts at the time of the CGT event is a currency other than Australian currency.
960-61(2)
You must use the *applicable functional currency to work out the amount of your *capital gain or *capital loss (if any).
The table has effect:
| Backdated startup choice | ||
| Item | In this case: | the choice is a backdated startup choice if... |
| 1 | you make a choice under item 1 of the table in subsection 960-60(1) | (a) both:
(i) you were in existence at the start of the income year in which you made the choice; and |
| (ii) you make the choice within 90 days after the beginning of that income year or within 30 days after the commencement of this section; or | ||
| (b) both: | ||
| (i) you came into existence during the income year in which you made the choice; and | ||
| (ii) you make the choice within 90 days after you came into existence or within 30 days after the commencement of this section. | ||
| 2 | you make a choice under item 2 of the table in subsection 960-60(1) | (a) both:
(i) the permanent establishment was in existence at the start of the income year in which you made the choice; and |
| (ii) you make the choice within 90 days after the beginning of that income year or within 30 days after the commencement of this section; or | ||
| (b) both: | ||
| (i) the permanent establishment came into existence during the income year in which you made the choice; and | ||
| (ii) you make the choice within 90 days after the permanent establishment came into existence or within 30 days after the commencement of this section. | ||
| 3 | you make a choice under item 3 of the table in subsection 960-60(1) | (a) both:
(i) the *offshore banking unit was in existence at the start of the income year in which you made the choice; and |
| (ii) you make the choice within 90 days after the beginning of that income year or within 30 days after the commencement of this section; or | ||
| (b) both: | ||
| (i) the offshore banking unit came into existence during the income year in which you made the choice; and | ||
| (ii) you make the choice within 90 days after the offshorebanking unit came into existence or within 30 days after the commencement of this section. | ||
| 4 | you make a choice under item 4 of the table in subsection 960-60(1) | (a) both:
(i) you are an attributable taxpayer of the CFC at the beginning of the CFC's *statutory accounting period in which you made the choice; and |
| (ii) you make the choice within 90 days after the beginning of the CFC's statutory accounting period or within 30 days after the commencement of this section; or | ||
| (b) both: | ||
| (i) you became an attributable taxpayer in relation to the CFC during the CFC's statutory accounting period during which you made the choice; and | ||
| (ii) you make the choice within 90 days after the beginning of the CFC's statutory accounting period or within 30 days after the commencement of this section. | ||
| 5 | you make a choice under item 5 of the table in subsection 960-60(1) | you make the choice within 90 days after the beginning of an income year or within 30 days after the commencement of this section. |
Australian resident required to prepare financial reports under section 292 of the Corporations Act 2001
960-70(1)
If you make a choice under item 1 of the table in subsection 960-60(1) with effect from the start of a particular income year, your applicable functional currency for:
(a) that income year; and
(b) each later income year for which the choice is in effect;
is the sole or predominant *foreign currency in which you kept your accounts at the time when you made the choice.
Permanent establishment, offshore banking unit or transferor trust
960-70(2)
If you make a choice under item 2, 3 or 5 of the table in subsection 960-60(1) in relation to a *permanent establishment, an *offshore banking unit or a *transferor trust with effect from the start of a particular income year, the applicable functional currency of the establishment, unit or trust for:
(a) that income year; and
(b) each later income year for which the choice is in effect;
is the sole or predominant *foreign currency in which the establishment, unit or trust kept its accounts at the time when you made the choice.
Controlled foreign company
960-70(3)
If you make a choice under item 4 of the table in subsection 960-60(1) in relation to a *controlled foreign company (CFC) with effect from the start of a particular *statutory accounting period, the applicable functional currency of the CFC for:
(a) that statutory accounting period; and
(b) each later statutory accounting period for which the choice is in effect;
is the sole or predominant *foreign currency in which the CFC kept its accounts at the time when you made the choice.
Note:
The attributable income of a controlled foreign company is calculated separately for each attributable taxpayer - see section 381 of the Income Tax Assessment Act 1936 .
Calculating capital gains and losses on indirect Australian real property interests
960-70(3A)
If subsection 960-61(2) applies, your applicable functional currency for the purposes of that subsection is the sole or predominant currency in which you keep your accounts at the time of the *CGT event.
Accounts
960-70(4)
For the purposes of this section, accounts means:
(a) ledgers; and
(b) journals; and
(c) statements of financial performance; and
(d) profit and loss accounts; and
(e) balance-sheets; and
(f) statements of financial position;
and includes statements, reports and notes attached to, or intended to be read with, any of the foregoing.
A transferor trust is a trust where, having regard to all relevant circumstances, it would be reasonable to conclude that another entity is, or is likely to be, an attributable taxpayer in relation to the trust for the purposes of Division 6AAA of Part III of the Income Tax Assessment Act 1936 .
The table has effect:
| Translation rules | ||||||
| Item | In this case... | these rules apply... | ||||
| 1 | (a) | you are an Australian resident required to prepare financial reports under section 292 of the Corporations Act 2001 ; and | (a) | first, for the purpose of working out, for the income year, so much of your taxable income or tax loss as is not the subject of a choice made by you under any other item of that table: | ||
| (b) | you have made a choice under item 1 of the table in subsection 960-60(1) , and that choice is in effect for an income year | (i) | an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and | |||
| (ii) | the definition of foreign currency in subsection 995-1(1) does not apply; and | |||||
| (iii) | the applicable functional currency is taken not to be a foreign currency; and | |||||
| (iv) | Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and | |||||
| (b) | second, so much of your taxable income as is not the subject of a choice made by you under any other item of that table is to be translated into Australian currency. | |||||
| 2 | (a) | you are: | (a) | first, for the purpose of working out, for the income year, the taxable income or tax loss derived from the activity or business carried on at or through the permanent establishment: | ||
| (i) | an Australian resident carrying on an activity or business at or through an *overseas permanent establishment; or | (i) | an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and | |||
| (ii) | a foreign resident carrying on an activity or business at or through an *Australian permanent establishment; and | (ii) | the definition of foreign currency in subsection 995-1(1) does not apply; and | |||
| (b) | you have made a choice under item 2 of the table in subsection 960-60(1) in relation to the permanent establishment, and that choice is in effect for an income year | (iii) | the applicable functional currency is taken not to be a foreign currency; and | |||
| (iv) | Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and | |||||
| (b) | second, the taxable income derived from the activity or business carried on at or through the permanent establishment is to be translated into Australian currency. | |||||
| 3 | (a)
(b) |
you are an *offshore banking unit (OBU); and
you have made a choice under item 3 of the table in subsection 960-60(1) in relation to the OBU, and that choice is in effect for an income year |
(a) | first, for the purpose of working out, for the income year, your total assessable OB income (within the meaning of Division 9A of Part III of the Income Tax Assessment Act 1936 ) and your total OB deductions (within the meaning of that Division): | ||
| (i) | an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and | |||||
| (ii) | the definition of foreign currency in subsection 995-1(1) does not apply; and | |||||
| (iii) | the applicable functional currency is taken not to be a foreign currency; and | |||||
| (iv) | Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and | |||||
| (b) | second, the total assessable OB income and the total allowable OB deductions are to be translated into Australian currency. | |||||
| 4 | (a) | you are an attributable taxpayer (within the meaning of Part X of the Income Tax Assessment Act 1936 ) of a *controlled foreign company (CFC); and | (a) | first, for the purpose of working out, for the statutory accounting period, the *attributable income of the CFC: | ||
| (b) | you have made a choice under item 4 of the table in subsection 960-60(1) in relation to the CFC, and that choice is in effect for a *statutory accounting period of the CFC | (i) | an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and | |||
| (ii) | the definition of foreign currency in subsection 995-1(1) does not apply; and | |||||
| (iii) | the applicable functional currency is taken not to be a foreign currency; and | |||||
| (iv) | Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and | |||||
| (b) | second, the attributable income is to be translated into Australian currency. | |||||
| 5 | (a)
(b) |
you are a *transferor trust; and
you have made a choice under item 5 of the table in subsection 960-60(1) in relation to the trust, and that choice is in effect for an income year |
(a) | first, for the purpose of working out, for the income year, your attributable income (within the meaning of Division 6AAA of Part III of the Income Tax Assessment Act 1936 ): | ||
| (i) | an amount that is not in the *applicable functional currency is to be translated into the applicable functional currency; and | |||||
| (ii) | the definition of foreign currency in subsection 995-1(1) does not apply; and | |||||
| (iii) | the applicable functional currency is taken not to be a foreign currency; and | |||||
| (iv) | Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; and | |||||
| (b) | second, the attributable income is to be translated into Australian currency. | |||||
| 6 | (a) | you are a *foreign resident who makes a *capital gain or *capital loss from a *CGT event in relation to an asset that is an *indirect Australian real property interest; and | (a) | first, for the purpose of working out, for the income year, the amount of your capital gain or capital loss from the CGT event, an amount that is not in the applicable functional currency is to be translated into the applicable functional currency; and | ||
| (b) | you are required by subsection 960-61(2) to work out the amount of your capital gain or capital loss in the *applicable functional currency | (b) | second, the amount of the capital gain or capital loss is to be translated into Australian currency. |
Note:
The attributable income of a controlled foreign company is calculated separately for each attributable taxpayer - see section 381 of the Income Tax Assessment Act 1936 .
Examples of an amount
960-80(2)
The following are examples of an amount:
(a) an amount of *ordinary income;
(b) an amount of an expense;
(c) an amount of an obligation;
(d) an amount of a liability;
(e) an amount of a receipt;
(f) an amount of a payment;
(g) an amount of consideration;
(h) a value;
(i) a monetary limit or other amount set out in this Act or any other law of the Commonwealth.
960-80(3)
The amounts set out in paragraphs (2)(b) to (i) may be amounts on revenue account, capital account or otherwise.
Amounts that are elements in the calculation of other amounts
960-80(4)
In applying this section:
(a) first, translate any amounts that are elements in the calculation of other amounts (except *special accrual amounts); and
(b) then, calculate the other amounts.
Special accrual amounts
960-80(5)
In applying this section:
(a) calculate a *special accrual amount without translation and without applying the first rule set out in the relevant item of the table in subsection (1); and
(b) then, translate the special accrual amount to Australian currency for the purposes of applying the second rule set out in the relevant item of the table in subsection (1).
Special translation rules
960-80(6)
Subsection 960-50(6) has effect, in relation to the translation of an amount into the *applicable functional currency, as if each reference in that subsection to Australian currency were a reference to the applicable functional currency.
Regulations about translation
960-80(7)
An entity must comply with the regulations (if any) in translating an amount into:
(a) the *applicable functional currency; or
(b) Australian currency.
Note:
For example, the regulations could require the use of a particular translation method and require consistency in the use of the translation method.
960-80(8)
Regulations made for the purposes of subsection (7) may make provision in relation to a matter by applying, adopting or incorporating (with or without modifications) matter contained in any of the *accounting standards:
(a) as in force or existing at a particular time; or
(b) as in force or existing from time to time.
Australian resident required to prepare financial reports under section 292 of the Corporations Act 2001
960-85(1)
If:
(a) as the result of a choice (the current choice ) made by you under item 1 of the table in subsection 960-60(1) , subsection 960-80(1) requires that an amount be translated to the *applicable functional currency; and
(b) the amount is attributable to an event that happened, or a state of affairs that came into existence, at a time (the event time ) before the current choice took effect;
the table has effect:
| Special rule about translation | ||
| Item | In this case... | this is the result... |
| 1 | at the event time, no previous choice made by you under item 1 of the table in subsection 960-60(1) was in effect | the amount is to be translated first to Australian currency at the exchange rate applicable at the event time, and then to the *applicable functional currency at the exchange rate applicable when the current choice took effect. |
| 2 | at the event time, a previous choice made by you under item 1 of the table in subsection 960-60(1) was in effect | the amount is to be translated first to the previous *applicable functional currency at the exchange rate applicable at the event time, and then to the current applicable functional currency at the exchange rate applicable when the current choice took effect. |
Permanent establishment, offshore banking unit, CFC or transferor trust
960-85(2)
If:
(a) as the result of a choice (the current choice ) made by you under item 2, 3, 4 or 5 of the table in subsection 960-60(1) , subsection 960-80(1) requires that an amount be translated to the *applicable functional currency; and
(b) the amount is attributable to an event that happened, or a state of affairs that came into existence, at a time (the event time ) before the current choice took effect;
the table has effect:
| Special rule about translation | ||
| Item | In this case... | this is the result... |
| 1 | at the event time, no previous choice made by you under section 960-60 in relation to the establishment, unit, CFC or trust was in effect | the amount is to be translated first to Australian currency at the exchange rate applicable at the event time, and then to the *applicable functional currency at the exchange rate applicable when the current choice took effect. |
| 2 | at the event time, a previous choice made by you under section 960-60 in relation to the establishment, unit, CFC or trust was in effect | the amount is to be translated first to the previous *applicable functional currency at the exchange rate applicable at the event time, and then to the current applicable functional currency at the exchange rate applicable when the current choice took effect. |
The table has effect if you have made a choice under section 960-60 :
| Withdrawal | ||
| Item | In this case: | you may withdraw your choice with effect from immediately after the end of... |
| 1 | (a) you are an Australian resident who is required to prepare financial reports under section 292 of the Corporations Act 2001 ; and | the income year in which you withdraw your choice. |
| (b) your *applicable functional currency has ceased to be the sole or predominant currency in which you keep your accounts (within the meaning of section 960-70) | ||
| 2 | (a) you are an Australian resident carrying on an activity or business at or through an*overseas permanent establishment or a foreign resident carrying on an activity or business at or through an *Australian permanent establishment; and | the income year in which you withdraw your choice. |
| (b) the *applicable functional currency of the permanent establishment has ceased to be the sole or predominant currency in which the establishment keeps its accounts (within the meaning of section 960-70) | ||
| 3 | (a) you are an *offshore banking unit (OBU); and | the income year in which you withdraw your choice. |
| (b) the *applicable functional currency of the OBU has ceased to be the sole or predominant currency in which the OBU keeps its accounts (within the meaning of section 960-70) | ||
| 4 | (a) you are an attributable taxpayer (within the meaning of Part X of the Income Tax Assessment Act 1936 ) of a *controlled foreign company (CFC); and | the CFC ' s *statutory accounting period in which you withdraw your choice. |
| (b) you have made a choice under item 4 of the table in subsection 960-60(1) in relation to the CFC; and | ||
| (c) the *applicable functional currency of the CFC has ceased to be the sole or predominant currency in which the CFC keeps its accounts (within the meaning of section 960-70) | ||
| 5 | (a) you are a *transferor trust; and
(b) the *applicable functional currency of the trust has ceased to be the sole or predominant currency in which the trust keeps its accounts (within the meaning of section 960-70) |
the income year in which you withdraw your choice. |
960-90(2)
A withdrawal must be in writing.
960-90(3)
Withdrawing a choice does not prevent you from making a fresh choice under section 960-60 .
Subdivision 960-E - Entities SECTION 960-100 Entities 960-100(1)
Entity means any of the following:
(a) an individual;
(b) a body corporate;
(c) a body politic;
(d) a partnership;
(e) any other unincorporated association or body of persons;
(f) a trust;
(g) a *superannuation fund;
(h) an *approved deposit fund.
Note:
The term entity is used in a number of different but related senses. It covers all kinds of legal person. It also covers groups of legal persons, and other things, that in practice are treated as having a separate identity in the same way as a legal person does.
960-100(1A)
Paragraph (1)(e) does not include a *non-entity joint venture.
960-100(2)
The trustee of a trust, of a *superannuation fund or of an *approved deposit fund is taken to be an entity consisting of the person who is the trustee, or the persons who are the trustees, at any given time.
Note 1:
This is because a right or obligation cannot be conferred or imposed on an entity that is not a legal person.
Note 2:
The entity that is the trustee of a trust or fund does not change merely because of a change in the person who is the trustee of the trust or fund, or persons who are the trustees of the trust or fund.
960-100(3)
A legal person can have a number of different capacities in which the person does things. In each of those capacities, the person is taken to be a different entity .
Example:
In addition to his or her personal capacity, an individual may be:
• sole trustee of one or more trusts; and • one of a number of trustees of a further trust. In his or her personal capacity, he or she is one entity. As trustee of each trust, he or she is a different entity. The trustees of the further trust are a different entity again, of which the individual is a member.
960-100(4)
If a provision refers to an entity of a particular kind, it refers to the entity in its capacity as that kind of entity, not to that entity in any other capacity.
Example:
A provision that refers to a company does not cover a company in a capacity as trustee, unless it also refers to a trustee.
Note:
Under section 87-35 , certain parts of Australian governments and authorities are treated as separate entities for the purposes of ascertaining whether another entity is conducting a personal services business.
SECTION 960-105 Certain entities treated as agents 960-105(1)
This Act applies to an entity as if the entity were an agent of another entity (the principal ) if:
(a) the principal is outside Australia; and
(b) the entity is in Australia and, on behalf of the principal, holds money of the principal or has control, receipt or disposal of money of the principal.
960-105(2)
This Act, or a provision of this Act, applies to an entity as if the entity were an agent of another entity if the Commissioner determines in writing that the entity is the agent or sole agent of the other entity for the purposes of this Act or of that provision.
960-105(3)
A determination under subsection (2) is not a legislative instrument.
An entity is a corporate tax entity at a particular time if:
(a) the entity is a company at that time; or
(b) the entity is a *corporate limited partnership in relation to the income year in which that time occurs; or
(c) (Repealed by No 53 of 2016)
(d) the entity is a *public trading trust in relation to the income year in which that time occurs.
What constitutes a distribution by various *corporate tax entities is set out in the following table:
| Distribution | |||
| Item | Corporate tax entity | Distribution | |
| 1 | company | a dividend, or something that is taken to be a dividend, under this Act | |
| 2 | *corporate limited partnership | (a) | a distribution made by the partnership, whether in money or in other property, to a partner in the partnership, other than a distribution, or so much of a distribution, as is attributable to profits or gains arising during an income year in relation to which the partnership was not a corporate limited partnership |
| (b) | something that is taken to be a dividend by the partnership under this Act | ||
| 3 | (Repealed by No 53 of 2016) | ||
| 4 | *public trading trust | a unit trust dividend, as defined in section 102M of the Income Tax Assessment Act 1936 |
960-120(2)
A *corporate tax entity makes a distribution in the form of a dividend on the day on which the dividend is paid, or taken to have been paid.
The following table sets out who is a member of various entities.
| Members | ||
| Item | Entity | Member |
| 1 | company | a member of the company or a stockholder in the company |
| 2 | partnership | a partner in the partnership |
| 3 | trust (except a *public trading trust) | a beneficiary, unitholder or object of the trust |
| 4 | (Repealed by No 53 of 2016) | |
| 5 | *public trading trust | a unitholder of the trust |
960-130(2)
If 2 or more entities jointly hold interests or rights that give rise to membership of another entity, each of them is a member of the other entity.
960-130(3)
An entity is not a member of another entity just because the entity holds one or more interests or rights relating to the other entity that are *debt interests. This subsection has effect despite subsections (1) and (2) of this section.
Example:
An entity is not a member of a company as defined in this section merely because it is a member of the company in the ordinary sense of the term because it holds a finance share in the company, if the finance share is a debt interest. However, if the entity holds other shares in the company that are not debt interests, it will be a member because of those other shares.
SECTION 960-135 960-135 Membership interest in an entity
If you are a *member of an entity:
(a) each interest, or set of interests, in the entity; or
(b) each right, or set of rights, in relation to the entity;
by virtue of which you are a member of the entity is a membership interest of yours in the entity.
Note:
In conjunction with subsection 960-130(3) , this means that a debt interest is not a membership interest.
Example:
A member of a company holds a finance share in a company that is a debt interest and some other shares in the company that are not debt interests. Only the other shares are membership interests in the company. The finance share is not, because the member is not a member of the company because of that share (see subsection 960-130(3) ).
A *membership interest in a *corporate tax entity is an ordinary membership interest if:
(a) in the case of a membership interest in a company - it is an ordinary share; and
(b) in the case of a membership interest in a *corporate limited partnership - it is an interest in the income of the partnership; and
(c) in the case of a membership interest in a *public trading trust - it is a unit in the trust.
An entity's total participation interest at a particular time in another entity is the sum of:
(a) the entity's *direct participation interest in the other entity at that time; and
(b) the entity's *indirect participation interest in the other entity at that time.
Work out the indirect participation interest that an entity (the holding entity ) holds at a particular time in another entity (the test entity ) by multiplying:
(a) the holding entity's *direct participation interest (if any) in another entity (the intermediate entity ) at that time;
by:
(b) the sum of:
(i) the intermediate entity's direct participation interest (if any) in the test entity at that time; and
(ii) the intermediate entity's indirect participation interest (if any) in the test entity at that time (as worked out under one or more other applications of this section).
960-185(2)
If there is more than one intermediate entity to which paragraph (1)(a) applies at that time, the holding entity's indirect participation interest is the sum of the percentages worked out under subsection (1) in relation to each of those intermediate entities.
Use the following table to work out the direct participation interest that one entity holds in another entity.
| Direct participation interest | ||
| If the other entity is this kind of entity: | the direct participation interest that the first entity holds in the other entity is: | |
| 1 | A company (within the meaning of Part X of the Income Tax Assessment Act 1936 ) | the direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936 ) that the first entity holds in the other entity |
| 2 | A trust (within the meaning of Part X of the Income Tax Assessment Act 1936 ) | the direct control interest (within the meaning of section 351 of the Income Tax Assessment Act 1936 ) that the first entity holds in the other entity |
| 3 | A partnership | the direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936 ) that the first entity would hold in the other entity, if the assumptions in subsection (3) of this section were made |
960-190(2)
For the purposes of subsection (1):
(a) apply sections 350 and 351 of the Income Tax Assessment Act 1936 as if those sections apply for the purposes of this Division rather than only for the purposes of Part X of that Act; and
(b) do not apply subsections 350(6) and (7) and 351(3) and (4) of that Act.
960-190(3)
For the purposes of item 3 of the table in subsection (1), assume that:
(a) the *partnership is a company; and
(b) the partners in the partnership are shareholders in the company; and
(c) the total amount of assets or capital contributed to the partnership is the total paid-up share capital of the company; and
(d) a partner's right of distribution of capital, assets or profits on the dissolution of the partnership is a shareholder's right to distribution of capital or profits of the company on winding-up; and
(e) a partner's right of distribution of capital, assets or profits otherwise than on the dissolution of the partnership is a shareholder's right to distribution of capital or profits of the company otherwise than on winding-up.
An interest held by an entity (the holding entity ) in another entity (the test entity ) passes the non-portfolio interest test at a time if the sum of the *direct participation interests held by the holding entity and its *associates in the test entity at that time is 10% or more.
Shares in a listed public company
960-220(1)
There is a trading in *shares in a company if there is an issue, redemption or transfer of those shares, or any other dealing in those shares, but only if it changes the respective proportions in which all the registered holders of shares in the company:
(a) can exercise the voting power in the company; or
(b) have the right to receive, as registered holders (whether or not for their own benefit) any dividends that the company may pay; or
(c) have the right to receive, as registered holders (whether or not for their own benefit) any distribution of capital of the company.
Note:
A special rule applies in working out whether an asset has stopped being a pre-CGT asset: see section 149-10 .
Units in a unit trust
960-220(2)
There is a trading in units in a unit trust if there is an issue, redemption or transfer of those units, or any other dealing in those units, but only if it changes the respective proportions in which all the registered holders of units in the trust hold (whether beneficially or not) interests in the trust income or trust capital.
Note:
A special rule applies in working out whether an asset has stopped being a pre-CGT asset: see section 149-10 .
SECTION 960-225 Abnormal trading 960-225(1)
There is an abnormal trading in *shares in a company, or in units in a unit trust, if a *trading in the shares or units is abnormal having regard to all relevant factors, including these:
(a) the timing of the trading, when compared with the normal timing for trading in the company's shares or in the trust's units;
(b) the number of shares or units traded, when compared with the normal number of the company's shares, or the trust's units, traded;
(c) any connection between the trading and any other trading in the company's shares or in the trust's units;
(d) any connection between the trading and a *tax loss or other deduction of the company or trust.
960-225(2)
There may also be an abnormal trading under any of the following provisions.
SECTION 960-230 960-230 Abnormal trading - 5% of shares or units in one transaction
There is an abnormal trading in *shares in a company, or in units in a unit trust, if 5% or more of the shares or units are *traded in one transaction.
There is an abnormal trading in *shares in a company, or in units in a unit trust, if the company or trustee knows or reasonably suspects that an entity (or an entity and one or more of the entity's *associates) has acquired (or redeemed) 5% or more of the shares or units in 2 or more transactions and would not have done so if the company or trust did not have a *tax loss or other deduction.
Time when abnormal trading happens
960-235(2)
The *abnormal trading happens at the time of the particular transaction that causes the 5% figure to be exceeded.
SECTION 960-240 960-240 Abnormal trading - suspected acquisition or merger
There is an abnormal trading in *shares in a company, or in units in a unit trust, if a *trading in those shares or units happens which the company or trustee knows or reasonably suspects is part of an acquisition or merger of the company with another company, or of the trust with another trust.
There is an abnormal trading in *shares in a company or units in a unit trust if more than 20% of the shares or units are *traded during a 60 day period.
Time when abnormal trading happens
960-245(2)
The *abnormal trading happens at the end of the 60 day period concerned.
Subdivision 960-J - Family relationships
SECTION 960-250 What this Subdivision is about
This Subdivision has 2 principles for defining family relationships.
The first principle is to treat an unmarried couple (whether of the same sex or different sexes) in the same way as a married couple if:
The second principle is to treat anyone who is defined to be an individual's child in the same way as the individual's natural child would be treated.
Both principles extend to tracing other family relationships, including beyond couples and children and their parents.
| Operative provisions | |
| 960-252 | Object of this Subdivision |
| 960-255 | Family relationships |
SECTION 960-252 Object of this Subdivision 960-252(1)
The first object of this Subdivision is to ensure that the same consequences flow under this Act and the other Acts to which this Subdivision applies from the relationship between 2 people who are an unmarried couple (whether of the same sex or different sexes) as from a marriage, if:
(a) the relationship is registered under a *State law or *Territory law (as mentioned in paragraph (a) of the definition of spouse in subsection 995-1(1) ); or
(b) they live together on a genuine domestic basis.
960-252(2)
The second object of this Subdivision is to ensure that under this Act and the other Acts to which this Subdivision applies, anyone who is defined to be an individual ' s *child is treated in the same way as if he or she were the individual ' s natural child.
Relationships between couples
960-255(1)
If one individual is the *spouse of another individual because of the definition of spouse in subsection 995-1(1) , relationships traced to, from or through the individual, and family groups of which either individual is a member, are to be determined in the same way as if the individual were legally married to the other individual.
Example:
George and Angelika are not legally married but live together on a genuine domestic basis in a relationship as a couple. This Act treats them as part of each other's family.
Relationships involving children
960-255(2)
If one individual is the *child of another individual because of the definition of child in subsection 995-1(1) , relationships traced to, from or through the individual, and family groups of which either individual is a member, are to be determined in the same way as if the individual were the natural child of the other individual.
Example:
Clare's stepfather Frank has a sister Angela. This Act applies as if Angela were Clare's aunt because Clare is defined to be Frank's child. That is, Clare's relationship to Angela is determined on the basis that Clare is Frank's natural child.
Application
960-255(3)
Subsections (1) and (2) apply for the purposes of this Act. They also apply for the purposes of a provision of another Act if one or more of the following applies for the purposes of that provision (or would apply if it were used in the provision):
(a) the definition of child in subsection 995-1(1) ;
(b) the definition of parent in subsection 995-1(1) ;
(c) the definition of relative in subsection 995-1(1) ;
(d) the definition of spouse in subsection 995-1(1) .
There are a number of provisions that require amounts to be indexed. This Subdivision shows you:
This table sets out the provisions for which indexation is relevant.
| Provisions for which indexation is relevant | ||
| Item | Topic of provision: | See: |
| 1 | Car limit | section 40-230 |
| 2 | Capital gains - cost base | Parts 3-1 and 3-3 |
| 3 | Capital gains - Improvements as separate assets | Subdivision 108-D |
| 3A | Dependant (invalid and carer) tax offset | section 61-30 |
| 4 | (Repealed by No 49 of 2019) | |
| 4A | (Repealed by No 109 of 2014) | |
| 5 | *Genuine redundancy payments and *early retirement scheme payments - base amount | subsection 83-170(3) |
| 6 | *Genuine redundancy payments and *early retirement scheme payments - service amount | subsection 83-170(3) |
| 7 | Reduction of superannuation contributions - pre-1 July 88 funding credits (unused amount at end of previous income year) | subsection 295-265(2) |
| 8 | *Employment termination payments - *ETP cap amount | section 82-160 |
| 9 | * Excess concessional contributions - * concessional contributions cap | subsection 291-20(2) |
| 10 | *Excess non-concessional contributions tax on superannuation contributions - index amount (*CGT cap amount) | subsection 292-105(4) |
| 10A | *General transfer balance cap | section 294-35 |
| 11 | *Superannuation benefits - index amount (*low rate cap amount) | subsection 307-345(4) |
| 12 | *Superannuation benefits - index amount (*untaxed plan cap amount) | subsection 307-350(4) |
| 13 | Thresholds for application of Division 250 | sections 250-25 and 250-30 |
| 13A | Concessional cross staple rent cap - existing lease with specified rent | section 12-443 in Schedule 1 to the Taxation Administration Act 1953 |
| 14 | Levy threshold for the major bank levy | subsection 4(3) of the Major Bank Levy Act 2017 |
Note:
There are provisions of the Income Tax Assessment Act 1936 dealing with indexation that have not yet been rewritten.
SECTION 960-270 Indexing amounts 960-270(1)
Some provisions of this Act require amounts to be indexed. You index an amount by multiplying it by its *indexation factor.
960-270(2)
You do not index the amount if its *indexation factor is 1 or less.
960-270(3)
This section does not apply in relation to amounts mentioned in the provisions listed at items 8 to 12, or at item 14, in section 960-265 .
Note:
For the indexation of those amounts, see sections 960-285 and 960-290 .
SECTION 960-275 Indexation factor 960-275(1)
For indexation of amounts on an annual basis, the indexation factor is:
| Sum of the *index numbers for the *quarters in the year ending on
31 March just before the start of the relevant *financial year Sum of the *index numbers for the *quarters in the year ending on the previous 31 March |
960-275(1A)
However, for indexation of the amounts mentioned in the provisions listed at items 5, 6 and 7 in section 960-265 , the indexation factor is:
| *
Index number for the
*
quarter ending on
31 December just before the start of the relevant income year |
| * Index number for the * quarter ending on the previous 31 December |
960-275(2)
For indexation of the *cost base of a *CGT asset (except the first element of the cost base of an asset covered by subsection (3)), the indexation factor for expenditure in an element of the cost base is:
|
*Index number for the *quarter ending on 30 September 1999
*Index number for the *quarter in which the expenditure was incurred |
The expenditure can include giving property: see section 103-5 .
Note 1:
This rule does not apply to expenditure incurred after 11.45 am on 21 September 1999 or any expenditure relating to a CGT asset acquired after that time: see section 114-1 .
Note 2:
This rule applies even if you do not actually pay some of the expenditure until a later time (for example, under a contract to purchase an asset by instalments).
Note 3:
There are rules affecting when the expenditure was incurred: see sections 114-15 and 114-20 .
960-275(3)
For indexation of the first element of the *cost base of a *CGT asset that is:
(a) a *share in a company; or
(b) a unit in a unit trust;
the indexation factor for an amount in the first element of the *cost base of the asset that was paid to the company or trust at a time after it was *acquired is:
|
*Index number for the *quarter ending on 30 September 1999
*Index number for the *quarter in which the amount was paid |
The payment can include giving property: see section 103-5 .
Example:
Peter acquires shares in a company. The shares are partly-paid, and the company makes a call on the shares. Peter sells the shares to Narina before he is liable to pay the call.
The amount Narina paid to Peter for the shares is indexed under subsection 960-275(2) from the quarter in which she incurred the expenditure to acquire the shares.
The amount Narina later pays for the call on the shares is indexed in accordance with subsection 960-275(3) from the quarter in which she made that later payment.
Note 1:
This subsection does not apply to shares or units you acquired before 16 August 1989: see section 960-275 of the Income Tax (Transitional Provisions) Act 1997 .
Note 2:
This subsection does not apply to an amount paid after 11.45 am on 21 September 1999 or an amount paid in relation to a CGT asset acquired after that time: see section 114-1 .
960-275(4)
However, you cannot index expenditure in the third element of the *cost base of a CGT asset (costs of ownership).
960-275(5)
You work out the *indexation factor to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
Example:
If the factor is 1.102795, it would be rounded up to 1.103.
960-275(6)
This section does not apply in relation to amounts mentioned in the provisions listed at items 8 to 12, or at item 14, in section 960-265 .
Note:
For the indexation of those amounts, see sections 960-285 and 960-290 .
SECTION 960-280 Index number 960-280(1)
In most cases, the index number for a *quarter is the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) first published by the Australian Statistician for the quarter.
Car limit
960-280(2)
For calculating the *car limit, the index number for a *quarter is the index number for the motor vehicle purchase sub-group of the Consumer Price Index, being the weighted average of the 8 capital cities, first published by the Australian Statistician for the quarter.
960-280(3)
If the Australian Statistician changes the index reference period for an *index number, only index numbers published in terms of the new index reference period are to be used after the change.
Genuine redundancy, early retirement schemes, pre-1 July 88 funding credits
960-280(4)
For calculating the amounts mentioned in the provisions listed at items 5, 6 and 7 in section 960-265 , the index number for a *quarter is the estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter first published by the Australian Statistician in respect of that month.
960-280(5)
Subsection (3) does not apply to the index numbers mentioned in subsection (4).
Exceptions
960-280(6)
This section does not apply in relation to amounts mentioned in the provisions listed at items 8 to 12, or at item 14, in section 960-265 .
Note:
For the indexation of those amounts, see sections 960-285 and 960-290 .
SECTION 960-285 Indexation - superannuation and employment termination 960-285(1)
This section applies in relation to the amounts listed at items 8 to 12 in section 960-265 .
Indexing amounts
960-285(2)
You index the amount by:
(a) first, multiplying its base amount mentioned in subsection (3) by its *indexation factor mentioned in subsection (5); and
(b) next, rounding the result in paragraph (a) down to the nearest multiple of its *rounding amount.
Example 1:
An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $143,000, the indexed amount is rounded back down to $140,000.
Example 2:
An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $146,000, the indexed amount is rounded down to $145,000.
960-285(3)
The amount (the base amount ) for an amount to which this section applies is:
(a) unless paragraph (b) applies - the amount for the 2007-2008 income year or *financial year; or
(b) if the amount is mentioned in item 9 or 10A in section 960-265 - the amount for the 2017-2018 financial year.
960-285(4)
You do not index the amount if the *indexation factor is 1 or less.
Indexation factor
960-285(5)
For indexing an amount, its indexation factor is:
| *Index number mentioned in subsection (7) for the *quarter ending on 31 December just before the start of the relevant income year or *financial year | ||
| *Index number mentioned in subsection (7) for the base quarter |
where:
(a) unless paragraph (b) applies - the quarter ending on 31 December 2006; or
(b) if the amount is mentioned in item 9 or 10A in section 960-265 - the quarter ending on 31 December 2016.
960-285(6)
You work out the *indexation factor mentioned in subsection (5) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
Index number and rounding amount
960-285(7)
For indexing an amount to which this section applies:
(a) the index number for a *quarter is set out in column 2 of the relevant item in the following table; and
(b) the rounding amount is set out in column 3 of that item.
| Concepts for indexing rounded caps | |||
| Item |
Column 1
Item in section 960-265 |
Column 2
Index number |
Column 3
Rounding amount |
| 1 | Items 8, 10, 11 and 12 | the *index number mentioned in subsection 960-280(4) (which is about average weekly ordinary time earnings) | $5,000 |
| 2 | Item 9 (concessional contributions cap) | the *index number mentioned in subsection 960-280(4) (which is about average weekly ordinary time earnings) | $2,500 |
| 3 | Item 10A (general transfer balance cap) | the *index number mentioned in subsection 960-280(1) (which is about the CPI) | $100,000 |
You index, on a *quarterly basis, the amount mentioned in the provision listed at item 14 in section 960-265 by:
(a) first, multiplying the amount by its *indexation factor mentioned in subsection (3); and
(b) next, rounding the result in paragraph (a) down to the nearest multiple of $1,000,000.
960-290(2)
You do not index the amount if the *indexation factor is 1 or less.
960-290(3)
For indexation of the amount, the indexation factor is:
| GDP number for the preceding quarter | ||
| GDP number for the base quarter |
where:
GDP number for the base quarter
is the estimate that is, at the end of the *quarter to which the indexation is to be applied, the estimate of the Gross Domestic Product: Current Prices-Seasonally Adjusted most recently published by the Australian Statistician for the *quarter ending on 30 June 2017.
GDP number for the preceding quarter
is the estimate of the Gross Domestic Product: Current Prices-Seasonally Adjusted first published by the Australian Statistician for the *quarter preceding the quarter to which the indexation is to be applied.
960-290(4)
You work out the *indexation factor mentioned in subsection (3) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
(Repealed by No 80 of 2007 )
960-335 (Repealed) SECTION 960-335 Meaning of small business taxpayer
(Repealed by No 80 of 2007 )
(Repealed by No 80 of 2007 )
(Repealed by No 80 of 2007 )
(Repealed by No 80 of 2007 )
(Repealed by No 80 of 2007 )
The expression " market value " is often used in this Act with its ordinary meaning.
However, in some cases that expression has a meaning affected by this Subdivision.
The Commissioner may approve methods to use for working out the market value of assets or non-cash benefits.
SECTION 960-405 Effect of GST on market value of an asset 960-405(1)
The market value of an asset at a particular time is reduced by the amount of the *input tax credit (if any) to which you would be entitled assuming that:
(a) you had *acquired the asset at that time; and
(b) the acquisition had been solely for a *creditable purpose.
960-405(2)
Subsection (1) does not apply:
(a) to an asset the *supply of which cannot be a *taxable supply; or
(b) in working out the *market value of economic benefits, or of *equity or loan interests, for the purposes of Part 3-95 (about value shifting).
Note:
Some assets, such as shares, cannot be the subject of a taxable supply.
In working out the market value of a *non-cash benefit, disregard anything that would prevent or restrict conversion of the benefit to money.
The *market value of an asset or *non-cash benefit that you work out using a method approved under subsection (2) for that kind of asset or benefit binds the Commissioner in relation to you.
Note:
You do not have to use the method.
960-412(2)
The Commissioner may, by legislative instrument, approve methods for working out the *market value of assets or *non-cash benefits. A method may include conditions.
Note 1:
Different methods may be approved for different kinds of assets or non-cash benefits (see subsection 13(3) of the Legislation Act 2003 ).
Note 2:
Any approved method would need to be consistent with the other rules about market value in this Subdivision.
To avoid doubt, apply the rules in this Subdivision to the *market value component of any calculation that involves market value.
SECTION 960-500 What this Subdivision is about
This Subdivision includes rules about the meaning of Australia when used in a geographical sense.
The ordinary meaning of Australia includes each State and internal Territory of Australia and their internal waters and any islands that are part of those State and Territories.
This Subdivision extends the ordinary meaning of Australia to include each external Territory of Australia (other than the Australian Antarctic Territory) and certain offshore areas and certain offshore installations.
| Operative provisions | |
| 960-505 | Meaning of Australia |
SECTION 960-505 Meaning of Australia
Territories
960-505(1)
Australia , when used in a geographical sense, includes each of the following:
(a) Norfolk Island;
(b) the Coral Sea Islands Territory;
(c) the Territory of Ashmore and Cartier Islands;
(d) the Territory of Christmas Island;
(e) the Territory of Cocos (Keeling) Islands;
(f) the Territory of Heard Island and the McDonald Islands.
Note:
Section 15B of the Acts Interpretation Act 1901 provides that an Act is taken to have effect in the coastal sea of Australia as if the coastal sea were part of Australia.
Offshore areas
960-505(2)
Australia , when used in a geographical sense, includes an offshore area for the purposes of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .
Note 1:
The offshore area includes all things located in that area, including all installations and structures such as oil and gas rigs. The area also extends to the airspace over, and the sea-bed and subsoil beneath, that area.
Note 2:
The offshore area includes the exclusive economic zone and the continental shelf of Australia.
SECTION 960-550 What this Subdivision is about
Generally speaking, a significant global entity is:
| Operative provisions | |
| 960-555 | Meaning of significant global entity |
| 960-560 | Meaning of global parent entity |
| 960-565 | Meaning of annual global income |
| 960-570 | Meaning of global financial statements |
| 960-575 | Meaning of notional listed company group |
SECTION 960-555 Meaning of significant global entity 960-555(1)
An entity is a significant global entity for a period if the entity is a *global parent entity:
(a) whose *annual global income for the period is$1 billion or more; or
(b) in relation to whom the Commissioner makes a determination under subsection (3) for the period.
960-555(2)
An entity is also a significant global entity for a period if:
(a) the entity is a member of a group of entities that are consolidated for accounting purposes as a single group; and
(b) one of the other members of the group is a *global parent entity:
(i) whose *annual global income for the period is $1 billion or more; or
(ii) in relation to whom the Commissioner makes a determination under subsection (3) for the period.
960-555(2A)
An entity is also a significant global entity for a period if:
(a) the entity is a *member of a *notional listed company group; and
(b) one of the other members of the group is a *global parent entity:
(i) whose *annual global income for the period is $1 billion or more; or
(ii) in relation to whom the Commissioner makes a determination under subsection (3) for the period.
960-555(3)
The Commissioner may make a determination under this subsection in relation to a *global parent entity for a period if:
(a) *global financial statements have not been prepared for the entity for the period; and
(b) on the basis of the information available to the Commissioner, the Commissioner reasonably believes that, if such statements had been prepared for the period, the entity ' s *annual global income for the period would have been $1 billion or more.
The Commissioner must give a notice of the determination to the global parent entity, or to another entity that becomes a *significant global entity as a result of the determination.
960-555(4)
An entity who is dissatisfied with a determination made in relation to the entity may object against the determination in the manner set out in Part IVC of the Taxation Administration Act 1953 .
960-555(5)
However, if:
(a) there has been a taxation objection (within the meaning of section 14ZL of the Taxation Administration Act 1953 ) against an *assessment relating to the entity; and
(b) the assessment involved the application of section 177DA of the Income Tax Assessment Act 1936 (schemes that limit a taxable presence in Australia) in relation to the entity;
the right of objection under subsection (4) of this section is unaffected, but the outcome of that objection has no effect on the assessment or on the outcome of the taxation objection.
Note:
Section 14ZVA of the Taxation Administration Act 1953 excludes from a taxation objection to an assessment any grounds (or potential grounds) for an objection to a determination under subsection (3) of this section.
960-555(6)
A determination under subsection (3) is not a legislative instrument.
960-555(7)
Section 175 of the Income Tax Assessment Act 1936 (validity) applies to a determination under subsection (3) of this section in the same way as it applies to an *assessment.
A global parent entity is an entity that, according to:
(a) *accounting principles; or
(b) if accounting principles do not apply in relation to the entity - commercially accepted principles relating to accounting;
is not controlled by another entity.
Note:
A global parent entity may be a single entity that is not a member of a group of entities.
The annual global income of an entity for a period is:
(aa) if the entity is a *member of a *notional listed company group - the total annual income of all the members of the group (worked out on the assumption that all members of the group were consolidated for accounting purposes as a single group); or
(a) if paragraph (aa) does not apply and the entity is a member of a group of entities that are consolidated for accounting purposes as a single group - the total annual income of all the members of the group; or
(b) otherwise - the total annual income of the entity;
as shown in the latest *global financial statements for the entity for the period.
960-565(2)
Subsection (3) applies if:
(a) *global financial statements have not been prepared for the entity for the period; or
(b) global financial statements have not been prepared for the entity for the period that show the total annual income mentioned in subsection (1).
960-565(3)
Despite subsection (1), the annual global income of the *entity for the period is the amount that would be, on the assumption that such statements had been prepared, the total annual income mentioned in subsection (1) shown in those statements.
Global financial statements for an entity for a period (the relevant period ) are the financial statements that:
(a) have been prepared and audited in relation to that entity, or that entity and other entities, in accordance with:
(i) *accounting principles and *auditing principles; or
(ii) if such principles do not apply - commercially accepted principles, relating to accounting and auditing, that ensure the statements give a true and fair view of the financial position and performance of that entity (or that entity and the other entities on a consolidated basis); and
(b) are for the most recent period ending:
(i) no later than the end of the relevant period; and
(ii) no earlier than 12 months before the start of the relevant period.
A notional listed company group is a group of entities that would be required to be consolidated for accounting purposes as a single group, on the assumption that an entity (the test entity ) were a listed company (within the meaning of section 26BC of the Income Tax Assessment Act 1936 ).
960-575(2)
Each entity in that group is a member of the *notional listed company group.
960-575(3)
For the purposes of subsection (1), determine whether a group of entities would be required to be consolidated for accounting purposes as a single group according to:
(a) *accounting principles; or
(b) if accounting principles do not apply in relation to the test entity - commercially accepted principles related to accounting.
960-575(4)
In applying the *accounting principles or commercially accepted principles referred to in subsection (3):
(a) disregard any exceptions in those principles to requirements in those principles for entities to be consolidated as a single group; and
(b) without limiting paragraph (a), disregard any rule in those principles providing that one or more entities (the excepted entities ) are not required to be consolidated as a single group with one or more other entities because the effect of such consolidation would be immaterial as a result of:
(i) the size of the excepted entities; or
(ii) any other matter.
SECTION 961-1 What this Subdivision is about
This Subdivision provides for a notional tax offset for an income year if you contribute to the maintenance of a non-student child or a student dependant. The notional tax offset can only be taken into account in working out certain tax offsets under the Income Tax Assessment Act 1936 .
| Entitlement to the notional tax offset | |
| 961-5 | Who is entitled to the notional tax offset |
| Amount of the notional tax offset | |
| 961-10 | Amount of the dependant (non-student child under 21 or student) notional tax offset |
| 961-15 | Reduced amounts of the dependant (non-student child under 21 or student) notional tax offset |
| 961-20 | Reductions to take account of the dependant ' s income |
SECTION 961-5 Who is entitled to the notional tax offset 961-5(1)
You are entitled to a notional tax offset for an income year if:
(a) you are an individual; and
(b) you are an Australian resident; and
(c) during the year you contribute to the maintenance of another individual (the dependant ) who:
(i) is less than 25 years of age, and is a full-time student at a school, college or university; or
(ii) if subparagraph (i) does not apply - is less than 21 years of age; and
(d) during the year:
(i) the dependant is an Australian resident; or
(ii) you had a domicile in Australia.
961-5(2)
You may be entitled to more than one notional tax offset for the year under subsection (1) if you contributed to the maintenance of more than one dependant during the year.
Note:
The amount of the notional tax offset in relation to each subsequent dependant may only be part of the full amount: see subsection 961-15(1) .
961-5(3)
The notional tax offset only affects your *income tax liability as provided for by sections 23AB , 79A and 79B of the Income Tax Assessment Act 1936 .
Note:
Section 23AB of that Act provides a tax offset for service with an armed force under the control of the United Nations; section 79A provides a tax offset for residents of isolated areas; section 79B provides a tax offset for members of the Defence Force who are serving overseas.
SECTION 961-10 Amount of the dependant (non-student child under 21 or student) notional tax offset 961-10(1)
The amount of the notional tax offset to which you are entitled in relation to a dependant under section 961-5 for an income year is $376.
961-10(2)
However, if you are entitled to 2 or more such notional tax offsets for the income year in relation to individuals covered by subparagraph 961-5(1)(c)(ii) , the amount of the notional tax offset under section 961-5 is:
(a) in relation to the oldest of those individuals - $376; and
(b) in relation to each of the others - $282.
The amount of the notional tax offset under section 961-10 is reduced by the amount in accordance with subsection (2) of this section if one or more of the following applies:
(a) paragraph 961-5(1)(c) applies during part only of the year;
(b) paragraph 961-5(1)(d) applies during part only of the year;
(c) during the whole or part of the year, 2 or more individuals contribute to the maintenance of the dependant;
(d) the dependant only meets the description of the individual covered by subparagraph 961-5(1)(c)(i) or (ii) for part of the year.
961-15(2)
The amount of a notional tax offset is reduced to an amount that, in the Commissioner ' s opinion, is a reasonable apportionment in the circumstances, having regard to the applicable matters referred to in paragraphs (1)(a) to (d).
The amount of the notional tax offset under sections 961-10 and 961-15 in relation to the dependant for the year is reduced by $1 for every $4 by which the following exceeds $282:
(a) if you contribute to the maintenance of the dependant for the whole of the year - the dependant ' s *adjusted taxable income for offsets for the year;
(b) if paragraph (a) does not apply - the dependant ' s adjusted taxable income for offsets for that part of the year during which you contribute to the dependant ' s maintenance.
SECTION 961-50 What this Subdivision is about
This Subdivision provides for a notional tax offset for an income year if you are the sole contributor to the maintenance of a non-student child or a student dependant. The notional tax offset can only be taken into account in working out certain tax offsets under the Income Tax Assessment Act 1936 .
| Operative provisions | |
| 961-55 | Who is entitled to the notional tax offset |
| 961-60 | Amount of the dependant (sole parent of a non-student child under 21 or student) notional tax offset |
| 961-65 | Reductions to take account of change in circumstances |
SECTION 961-55 Who is entitled to the notional tax offset 961-55(1)
You are entitled to a notional tax offset for an income year if:
(a) during the year you have the sole care of another individual (the dependant ) who:
(i) is less than 25 years of age, and is a full-time student at a school, college or university; or
(ii) if subparagraph (i) does not apply - is less than 21 years of age; and
(b) you are entitled to a notional tax offset under Subdivision 961-A for the dependant; and
(c) during the year you did not have a *spouse.
961-55(2)
Paragraph (1)(c) does not apply if, in the opinion of the Commissioner, because of special circumstances, the paragraph should not apply.
961-55(3)
The notional tax offset only affects your *income tax liability as provided for by sections 79A and 79B of the Income Tax Assessment Act 1936 .
Note:
Section 79A of that Act provides a tax offset for residents of isolated areas; section 79B provides a tax offset for members of the Defence Force who are serving overseas.
The amount of the notional tax offset to which you are entitled under section 961-55 for an income year is $1,607.
Note:
The amount of the offset under this section applies regardless of whether you have one or more dependants that satisfy section 961-55 .
The amount of the notional tax offset under section 961-60 is reduced in accordance with subsection (2) if:
(a) paragraph 961-55(1)(a) applies during only part of the year; or
(b) paragraph 961-55(1)(c) does not apply because of subsection 961-55(2).
961-65(2)
The amount of the notional tax offset is reduced to an amount that, in the Commissioner ' s opinion, is a reasonable apportionment in the circumstances, having regard to the matters referred to in paragraphs (1)(a) and (b).
This Division tells you whether an interest is a debt interest, or an equity interest, for tax purposes. An interest that could be characterised as both a debt interest and an equity interest will be treated as a debt interest for tax purposes (except for certain interests that fund returns on equity interests).
Whether an interest is a debt interest or an equity interest matters because returns on debt interests are not frankable but may be deductible while returns on equity interests are not deductible but may be frankable.
This Division extends beyond shares the range of interests that are recognised as equity in a company. An interest that is an equity interest in a company but is not a share will be treated in the same way as a share for some tax purposes (particularly in relation to the determination of the tax treatment of returns on the interest).
This Division also tells you how to work out which distributions made in respect of a non-share equity interest in a company will be non-share dividends and which will be non-share capital returns. Those that are non-share dividends will be treated, for most tax purposes, in the same way as dividends.
Test for distinguishing debt and equity interests
974-5(1)
The test for distinguishing between debt interests and equity interests focuses on economic substance rather than mere legal form (see subsection 974-10(2) ). The test is designed to assess the economic substance of an interest in terms of its impact on the issuer's position.
Debt interests
974-5(2)
Subdivision 974-B tells you when an interest is a debt interest in an entity. The basic test is in section 974-20 .
Equity interests
974-5(3)
Subdivision 974-C tells you when an interest is an equity interest in a company. The basic test is in section 974-75 .
Tie breaker between debt and equity
974-5(4)
If an interest satisfies both the debt test and the equity test, it is treated as a debt interest and not an equity interest.
Distributions in relation to equity interests that are not shares
974-5(5)
If you have an equity interest in a company that is not a share, Subdivision 974-E tells you what will count as a non-share distribution, a non-share dividend and a non-share capital return in relation to the interest.
Concepts used in the debt and equity tests
974-5(6)
Subdivision 974-F defines a number of concepts that are used in the debt and equity tests (financing arrangement, effectively non-contingent obligation, benchmark rate of return and converting interest).
Operative provisions
SECTION 974-10 Object 974-10(1)
An object of this Division is to establish a test for determining for particular tax purposes whether a *scheme, or the combined operation of a number of schemes:
(a) gives rise to a *debt interest; or
(b) gives rise to an *equity interest.
Note 1:
The test is used, for example, for:
Note 2:
Subdivision 167-A has special rules for working out rights to dividends and capital distributions in a company whose shares do not all carry the same rights to those matters. Those rules include disregarding debt interests.
974-10(2)
Another object of this Division is that the test referred to in subsection (1) is to operate on the basis of the economic substance of the rights and obligations arising under the *scheme or schemes rather than merely on the basis of the legal form of the scheme or schemes.
Note 1:
The basic indicator of the economic character of a debt interest is the non-contingent nature of the returns. The basic indicator of the economic character of an equity interest, on the other hand, is the contingent nature of the returns (or convertibility into an interest of that nature).
Note 2:
The test is intended to operate, for example, to:
This will not happen if a provision in this Act specifically provides for a different treatment for the interest or dividend.
974-10(3)
Another object of this Division is that the combined effect of *related schemes be taken into account in appropriate cases:
(a) to ensure that the test operates effectively on the basis of the economic substance of the rights and obligations arising under the schemes rather than merely on the basis of the legal form of the schemes; and
(b) to prevent the test being circumvented by entities merely entering into a number of separate schemes instead of a single scheme.
974-10(4)
Another object of this Division is to identify the distributions and credits made in respect of *non-share equity interests in a company that are to be treated as *dividends ( non-share dividends ) and those that are to be treated as returns of capital ( non-share capital returns ).
Note:
Non-share dividends will generally be included in the recipient ' s assessable income and may be frankable.
974-10(5)
The Commissioner must have regard to the objects stated in subsections (1) to (3) in exercising the power to make a determination under any of the following provisions:
(a) subsection 974-15(4) ;
(b) subsection 974-60(3) , (4) or (5);
(c) section 974-65 ;
(d) subsection 974-70(4) ;
(e) subsection 974-150(1) .
Note:
An entity can apply to the Commissioner to have a determination made and can object under Part IVC of the Taxation Administration Act 1953 if it is dissatisfied with a determination (see section 974-112 ).
974-10(6)
Regulations may also be made under the provisions of this Division:
(a) to clarify the meaning of certain words and phrases in the light of emerging commercial practices, conditions and products; and
(b) to give guidance on the detailed operation of particular provisions.
The regulations must be consistent with the objects stated in subsections (1) to (3).
974-10(7)
Without limiting subsection 13(3) of the Legislation Act 2003 , the regulations made for the purposes of this Division may specify different rules for different classes of circumstances.
Subdivision 974-B - Debt interests
Single scheme giving rise to debt interest
974-15(1)
A *scheme gives rise to a debt interest in an entity if the scheme, when it comes into existence, satisfies the debt test in subsection 974-20(1) in relation to the entity.
Note 1:
A debt interest can also arise under subsection (2) (related schemes) or section 974-65 (Commissioner's discretion).
Note 2:
Section 974-55 defines various aspects of the debt interest that arises.
Related schemes giving rise to debt interest
974-15(2)
Two or more *related schemes (the constituent schemes ) together give rise to a debt interest in an entity if:
(a) the entity enters into, participates in or causes another entity to enter into or participate in the constituent schemes; and
(b) a scheme with the combined effect or operation of the constituent schemes (the notional scheme ) would satisfy the debt test in subsection 974-20(1) in relation to the entity if the notional scheme came into existence when the last of the constituent schemes came into existence; and
(c) it is reasonable to conclude that the entity intended, or knew that a party to the scheme or one of the schemes intended, the combined economic effects of the constituent schemes to be the same as, or similar to, the economic effects of a debt interest.
This is so whether or not the constituent schemes come into existence at the same time and even if none of the constituent schemes would individually give rise to that or any other *debt interest.
Note:
Section 974-105 explains the effect, for tax purposes, of actions taken under the schemes.
974-15(3)
Subsection (2) does not apply if each of the *schemes individually gives rise to a *debt interest in the entity.
974-15(4)
Two or more *related schemes do not give rise to a debt interest in an entity under subsection (2) if the Commissioner determines that it would be unreasonable to apply that subsection to those schemes.
974-15(5)
Without limiting subsection 974-10(5) , the Commissioner must, in exercising the power to make a determination under subsection (4), have regard to the following:
(a) the purpose of the *schemes (considered both individually and in combination);
(b) the effects of the schemes (considered both individually and in combination);
(c) the rights and obligations of the parties to the schemes (considered both individually and in combination);
(d) whether the schemes (when considered either individually or in combination) provide the basis for, or underpin, an interest issued to investors with the expectation that the interest can be assigned to other investors;
(e) whether the schemes (when considered either individually or in combination) comprise a set of rights and obligations issued to investors with the expectation that it can be assigned to other investors;
(f) any other relevant circumstances.
974-15(6)
If:
(a) 2 or more *related schemes give rise to a *debt interest in an entity; and
(b) one or more of those schemes (the hedging scheme or schemes ) are schemes for hedging or managing financial risk; and
(c) the other scheme or schemes give rise to a debt interest in the entity even if the hedging scheme or schemes are disregarded;
the debt interest that arises from the schemes is taken, for the purposes of Division 820 (the thin capitalisation rules), not to include the hedging scheme or schemes.
Note:
This means that in these circumstances the losses associated with the hedging scheme or schemes are not debt deductions under section 820-40 .
SECTION 974-20 The test for a debt interest
Satisfying the debt test
974-20(1)
A *scheme satisfies the debt test in this subsection in relation to an entity if:
(a) the scheme is a *financing arrangement for the entity; and
(b) the entity, or a *connected entity of the entity, receives, or will receive, a *financial benefit or benefits under the scheme; and
(c) the entity has, or the entity and a connected entity of the entity each has, an *effectively non-contingent obligation under the scheme to provide a financial benefit or benefits to one or more entities after the time when:
(i) the financial benefit referred to in paragraph (b) is received if there is only one; or
(ii) the first of the financial benefits referred to in paragraph (b) is received if there are more than one; and
(d) it is substantially more likely than not that the value provided (worked out under subsection (2)) will be at least equal to the value received (worked out under subsection (3)); and
(e) the value provided (worked out under subsection (2)) and the value received (worked out under subsection (3)) are not both nil.
The scheme does not need to satisfy paragraph (a) if the entity is a company and the interest arising from the scheme is an interest covered by item 1 of the table in subsection 974-75(1) (interest as a member or stockholder of the company).
Note:
Section 974-30 tells you when a financial benefit is taken to be provided to an entity.
974-20(2)
The value provided is:
(a) the value of the *financial benefit to be provided under the *scheme by the entity or a *connected entity if there is only one; or
(b) the sum of the values of all the financial benefits provided or to be provided under the scheme by the entity or a connected entity of the entity if there are 2 or more.
Note:
Section 974-35 tells you how to value financial benefits.
974-20(3)
The value received is:
(a) the value of the *financial benefit received, or to be received, under the *scheme by the entity or a *connected entity of the entity if there is only one; or
(b) the sum of the values of all the financial benefits received, or to be received, under the scheme by the entity or a connected entity if there are 2 or more.
974-20(4)
For the purposes of paragraph (1)(b) and subsections (2) and (3):
(a) a *financial benefit to be provided under the *scheme by the entity or a *connected entity is taken into account only if it is one that the entity or connected entity has an *effectively non-contingent obligation to provide; and
(b) a financial benefit to be received under the scheme by the entity or a connected entity is taken into account only if it is one that another entity has an effectively non-contingent obligation to provide.
Multiple financial benefits
974-20(5)
Paragraphs (1)(b) and (c) apply to 2 or more *financial benefits whether they are provided at the same time or over a period of time.
Regulations
974-20(6)
The regulations:
(a) may specify circumstances in which paragraph (1)(d) is satisfied or not satisfied; and
(b) may otherwise specify rules to be applied in determining whether or not paragraph (1)(d) is satisfied.
Short term schemes
974-25(1)
A *scheme does not satisfy the debt test in subsection 974-20(1) in relation to an entity if:
(a) at least a substantial part of a *financial benefit mentioned in that subsection does not consist of either of the following or a combination of either of the following:
(i) a liquid or monetary asset;
(ii) an amount of money; and
(b) the scheme requires the financial benefit mentioned in paragraph 974-20(1)(c) to be provided within a period of no more than 100 days of the receipt of the first financial benefit mentioned in paragraph 974-20(1)(b) ; and
(c) the financial benefit mentioned in paragraph 974-20(1)(c) :
(i) is in fact provided within that period; or
(ii) is not provided within that period because the entity required to provide the benefit neglects to provide the benefit within that period (although willing to do so); or
(iii) is not provided within that period because the entity required to provide the benefit is unable to provide the benefit within that period (although willing to do so); and
(d) the scheme is not one of a number of *related schemes that together are taken to give rise to a *debt interest under subsection 974-15(2) .
Regulations
974-25(2)
The regulations may make provision in relation to the application or operation of subsection (1). Without limiting this, the regulations may:
(a) specify what constitutes a substantial part of a *financial benefit for the purposes of paragraph (1)(a); or
(b) specify a period to be substituted for the period referred to in paragraph (1)(b).
Issue of equity interest
974-30(1)
The following do not constitute the provision of a *financial benefit by an entity or a *connected entity of the entity:
(a) the issue of an *equity interest in the entity or a connected entity of the entity; or
(b) an amount that is to be applied in respect of the issue of an equity interest in the entity or a connected entity of the entity.
Providing a financial benefit to an entity
974-30(2)
A *financial benefit is taken to be provided to an entity if it is provided:
(a) to the entity; or
(b) on the entity's behalf; or
(c) for the entity's benefit.
Obligation to provide future financial benefit
974-30(3)
For the avoidance of doubt, if you have a present obligation to provide a *financial benefit to an entity at some time in the future:
(a) the financial benefit is taken to be a financial benefit to be provided in the future; and
(b) the obligation to provide the financial benefit is taken not to be a financial benefit being provided at the present.
Value in nominal terms or present value terms
974-35(1)
For the purposes of this Subdivision:
(a) the value of a *financial benefit received or provided under a *scheme is its value calculated:
(i) in nominal terms if the performance period (see subsection (3)) must end no later than 10 years after the interest arising from the scheme is issued; or
(ii) in present value terms (see section 974-50 ) if the performance period must or may end more than 10 years after the interest arising from the scheme is issued; and
(b) the regulations may make provisions relating to the valuation of a financial benefit.
Assume scheme runs its full term
974-35(2)
The value of a *financial benefit received or provided under a *scheme is calculated assuming that the interest arising from the scheme will continue to be held for the rest of its life.
Note 1:
Section 974-40 makes specific provision for cases in which there is a right or option to terminate the interest early.
Note 2:
Section 974-45 makes specific provision for cases involving convertible interests.
Performance period
974-35(3)
The performance period is the period within which, under the terms on which the interest is issued, the *effectively non-contingent obligations of the issuer, and any *connected entity of the issuer, to provide a *financial benefit in relation to the interest have to be met.
974-35(4)
An obligation is treated as having to be met within 10 years after the interest is issued if:
(a) the issuer; or
(b) the *connected entity of the issuer;
has an *effectively non-contingent obligation to terminate the interest within that 10 year period even if the terms on which the interest is issued formally allow the obligation to continue after the end of that 10 year period.
Benefit dependent on variable factor
974-35(5)
If:
(a) a *financial benefit received or provided in respect of an interest depends on a factor that may vary over time (such as a variable interest rate); and
(b) that factor is one commonly used in commercial arrangements; and
(c) it would be unreasonable to expect any of the parties to the *scheme to know, or to anticipate accurately, the future value of that factor; and
(d) that factor has a particular value (the starting value ) when the scheme is entered into;
the value of the financial benefit is calculated assuming that the factor ' s value will retain the starting value for the whole of the life of the scheme.
Note:
For example, the value of a return based on a floating interest rate is calculated on the basis that the interest rate remains the interest rate that is applicable when the scheme is entered into.
Scheme wholly in foreign currency etc.
974-35(6)
If all the *financial benefits provided and received under a *scheme are denominated in a particular foreign currency or in terms of quantities of a particular commodity or other unit of account, they are not to be converted into Australian currency for the purpose of comparing their relative values for the purposes of this Subdivision.
This section deals with the situation in which a party to a *scheme has a right or option to terminate the scheme early (whether by discharging an obligation early, converting the interest arising from the scheme into another interest or otherwise).
Note 1:
An example of terminating a scheme early by discharging an obligation early is terminating a loan by discharging the obligation to repay the principal (and any outstanding interest) early.
Note 2:
In certain circumstances, conversion of an interest into another interest can terminate its life (see section 974-45 ).
974-40(2)
The existence of the right or option is to be disregarded in working out the length of the life of the interest arising from the *scheme for the purposes of this Subdivision if the party does not have an *effectively non-contingent obligation to exercise the right or option.
974-40(3)
If the party does have an *effectively non-contingent obligation to exercise the right or option, the life of the interest ends at the earliest time at which the party will have to exercise the right or option.
974-40(4)
This section does not limit subsection 974-35(2) .
SECTION 974-45 Valuation of financial benefits - convertible interests 974-45(1)
This section deals with the situation in which a *scheme gives rise to an *interest that will or may convert into an *equity interest in a company.
974-45(2)
The life of the interest ends no later than the time when it converts into that *equity interest.
974-45(3)
The possibility of the conversion is to be disregarded in working out the length of the life of the interest arising from the *scheme for the purposes of section 974-35 if it is uncertain:
(a) whether the interest will ever convert; or
(b) when the interest will convert.
Note:
Section 974-40 deals with the situation in which a party to the scheme may exercise a right or option to convert the interest.
974-45(4)
This section does not limit subsection 974-35(2) .
SECTION 974-50 Valuation of financial benefits - value in present value terms 974-50(1)
Subject to the regulations made for the purposes of subsection (5), the value in present value terms of a *financial benefit to be provided or received in respect of an interest (the test interest ) is calculated under subsection (4).
974-50(2)
If you need to calculate the values in present value terms of a number of *financial benefits, the value of each financial benefit is to be calculated separately.
974-50(3)
The value of a *financial benefit is to be calculated assuming that all amounts to be paid by an entity in respect of the test interest are paid at the earliest time when the entity becomes liable to pay them.
974-50(4)
The value of a *financial benefit in present value terms is:
|
Amount or value of *financial benefit in nominal terms
[ 1 + Adjusted benchmark rate of return ] n |
where:
adjusted benchmark rate of return
is 75% of the *benchmark rate of return on the test interest.
n
is the number of years in the period starting on the day on which the test interest is issued and ending on the day on which the *financial benefit is to be provided. If the period includes a part of a year, that part is to be expressed as the fraction:
|
Number of days in that period
Number of days in the year |
year
means a period of 12 months.
974-50(5)
The regulations may provide for the method of calculating the value in present value terms of a *financial benefit.
974-50(6)
Without limiting subsection (5), the regulations may:
(a) provide for an entirely different method of calculating the present value of the *financial benefit; or
(b) specify the adjusted *benchmark rate of return; or
(c) provide for a different method of determining the adjusted benchmark rate of return; or
(d) specify rules for determining whether a *debtinterest is an *ordinary debt interest.
SECTION 974-55 The debt interest and its issue 974-55(1)
If a *scheme, or 2 or more *related schemes, give rise to a *debt interest in an entity, the debt interest:
(a) consists of the interest that carries the right to receive a *financial benefit that the entity or a *connected entity has an *effectively non-contingent obligation to provide under the scheme or any of the schemes; and
(b) is taken, subject to section 974-60 , to be a debt interest in the entity; and
(c) is taken to be issued by the entity; and
(d) is issued when the entity (or a connected entity of the entity) first receives a *financial benefit under the scheme or any of the schemes; and
(e) is on issue while an effectively non-contingent obligation of the entity (or a connected entity of the entity) to provide a financial benefit under the scheme or any of the schemes remains unfulfilled.
974-55(2)
The interest referred to in paragraph (1)(a) may take the form of a proprietary right, a chose in action or any other form.
SECTION 974-60 Debt interest arising out of obligations owed by a number of entities 974-60(1)
This section deals with the situation in which a *scheme, or a number of *related schemes together, would, apart from this section, give rise to the same *debt interest in 2 or more entities.
Note:
A scheme may give rise to the same debt interest in 2 or more entities if each of those entities has non-contingent obligations to provide financial benefits under the scheme.
974-60(2)
The *debt interest:
(a) is a debt interest in the entity identified under subsection (3) or (4); and
(b) is not a debt interest in the other entity or entities.
974-60(3)
The *debt interest is a debt interest in the entity identified using the following method statement: Method statement
Step 1.
Work out, for each of the entities, the total value ofthe *financial benefits that the entity is under an *effectively non-contingent obligation to provide under the *scheme or schemes: this is the entity's obligation value .
Step 2.
The *debt interest is taken to be a debt interest in the entity with the greatest obligation value.
Step 3.
If it is not possible to determine which entity has the greatest obligation value (whether because of an equality of, or uncertainty as to, obligation values or otherwise), the *debt interest is taken to be a debt interest in the entity agreed on by all the entities.
Step 4.
If the entities do not agree, the interest is taken to be a *debt interest in the entity determined by the Commissioner.
974-60(4)
Despite subsection (3), the Commissioner may determine that the *debt interest is a debt interest in the entity specified in the determination.
974-60(5)
The Commissioner may make the determination only if satisfied, having regard to the economic substance of the relevant transactions, that the *debt interest is properly considered from a commercial point of view to be an interest in the entity specified in the determination.
SECTION 974-65 Commissioner's power 974-65(1)
Despite subsection 974-20(1) (the debt test), the Commissioner may determine that a *scheme gives rise to a debt interest in an entity if the Commissioner considers that:
(a) the scheme would satisfy paragraphs 974-20(1)(a) , (b), (c) and (e); but
(b) instead of satisfying paragraph 974-20(1)(d) , the scheme would satisfy all the following subparagraphs:
(i) it is substantially more likely than not that the value of the *financial benefit to be provided by the entity (or a *connected entity of the entity) under the *effectively non-contingent obligation will be at least equal to the substantial part of the value of the financial benefit received or to be received by the entity (or its connected entity) under the scheme;
(ii) it is substantially more likely than not that other financial benefits will be provided by the entity (or its connected entity) to one or more entities under the scheme;
(iii) it is substantially more likely than not that the sum of the values of the financial benefits mentioned in subparagraphs (i) and (ii) will be at least equal to the value of the financial benefit received by the entity (or its connected entity) under the scheme.
974-65(2)
In making the determination, the Commissioner must have regard to the following:
(a) the difference between the value of the *financial benefit received and the value of the financial benefit to be provided under the *effectively non-contingent obligation;
(b) the degree of likelihood of other financial benefits being provided under the *scheme;
(c) the degree of likelihood of the sum of the value of the financial benefits mentioned in subparagraphs (1)(b)(i) and (ii) being equal to or greater than the value of the financial benefit received under the scheme;
(d) the particular circumstances surrounding the scheme (including circumstances of the parties to the scheme and their purposes for entering into the scheme).
974-65(3)
If the Commissioner determines under this section that a *scheme gives rise to a *debt interest, the scheme has that effect for all purposes of this Division.
Subdivision 974-C - Equity interests in companies SECTION 974-70 Meaning of equity interest in a company
Scheme giving rise to equity interest
974-70(1)
A *scheme gives rise to an equity interest in a company if, when the scheme comes into existence:
(a) the scheme satisfies the equity test in subsection 974-75(1) in relation to the company because of the existence of an interest; and
(b) the interest is not characterised as, and does not form part of a larger interest that is characterised as, a *debt interest in the company, or a *connected entity of the company, under Subdivision 974-B .
Note 1:
An equity interest can also arise under subsection (2) if a notional scheme with the combined effect of a number of related schemes would give rise to an equity interest under this subsection. To do this, the notional scheme would need to satisfy paragraph (b). This means that the related schemes will not give rise to an equity interest if the notional scheme would be characterised as (or form part of a larger interest that would be characterised as) a debt interest in the company or a connected entity.
Note 2:
An equity interest can also arise under section 974-80 (arrangements for funding return through connected entities).
Note 3:
Section 974-95 defines various aspects of the equity interest that arises.
Related schemes giving rise to equity interest
974-70(2)
Two or more *related schemes (the constituent schemes ) are taken together to give rise to an equity interest in a company if:
(a) the company enters into, participates in or causes another entity to enter into or participate in the constituent schemes; and
(b) a scheme with the combined effect or operation of the constituent schemes (the notional scheme ) would give rise to an *equity interest in the company under subsection (1) if the notional scheme came into existence when the last of the constituent schemes came into existence; and
(c) it is reasonable to conclude that the company intended, or knew that a party to the scheme or one of the schemes intended, the combined economic effects of the constituent schemes to be the same as, or similar to, the economic effects of an equity interest.
This is so whether or not the constituent schemes come into existence at the same time and even if none of the constituent schemes would individually give rise to that or any other equity interest.
Note:
Section 974-105 explains the effect, for tax purposes, of actions taken under the schemes.
974-70(3)
Subsection (2) does not apply if each of the constituent *schemes individually gives rise to an *equity interest in the company.
974-70(4)
Two or more related *schemes do not give rise to an *equity interest in a company under subsection (2) if the Commissioner determines that it would be unreasonable to apply that subsection to those schemes.
974-70(5)
Without limiting subsection 974-10(5) , the Commissioner must, in exercising the power to make a determination under subsection (4), have regard to the following:
(a) the purpose of the *schemes (considered both individually and in combination);
(b) the effects of the schemes (considered both individually and in combination);
(c) the rights and obligations of the parties to the schemes (considered both individually and in combination);
(d) whether the schemes (when considered either individually or in combination) provide the basis for, or underpin, an interest issued to investors with the expectation that the interest can be assigned to other investors;
(e) whether the schemes (when considered either individually or in combination) comprise a set of rights and obligations issued to investors with the expectation that it can be assigned to other investors;
(f) any other relevant circumstances.
SECTION 974-75 The test for an equity interest
Basic test for equity interest
974-75(1)
A *scheme satisfies the equity test in this subsection in relation to a company if it gives rise to an interest set out in the following table:
| Equity interests | ||
| Item | Interest | |
| 1 | An interest in the company as a member or stockholder of the company. | |
| 2 | An interest that carries a right to a variable or fixed return from the company if either the right itself, or the amount of the return, is in substance or effect *contingent on aspects of the economic performance (whether past, current or future) of: | |
| (a) | the company; or | |
| (b) | a part of the company ' s activities; or | |
| (c) | a *connected entity of the company or a part of the activities of a connected entity of the company. | |
| The return may be a return of an amount invested in the interest. | ||
| 3 | An interest that carries a right to a variable or fixed return from the company if either the right itself, or the amount of the return, is at the discretion of: | |
| (a) | the company; or | |
| (b) | a *connected entity of the company. | |
| The return may be a return of an amount invested in the interest. | ||
| 4 | An interest issued by the company that: | |
| (a) | gives its holder (or a *connected entity of the holder) a right to be issued with an *equity interest in the company or a *connected entity of the company; or | |
| (b) | is an *interest that will, or may, convert into an equity interest in the company or a connected entity of the company. |
This subsection has effect subject to subsection (2) (requirement for financing arrangement).
Note:
Section 974-90 allows regulations to be made clarifying when a right or return is taken to be at discretion of a company or connected entity.
Financing arrangement
974-75(2)
A *scheme that would otherwise give rise to an *equity interest in a company because of an item in the table in subsection (1) (other than item 1) does not give rise to an equity interest in the company unless the scheme is a *financing arrangement for the company.
Form interest may take
974-75(3)
The interest referred to in item 2, 3 or 4 in the table in subsection (1) may take the form of a proprietary right, a chose in action or any other form.
Exception for certain at call loans - until 30 June 2005
974-75(4)
If:
(a) a *financing arrangement takes the form of a loan to a company by a *connected entity; and
(b) the loan does not have a fixed term; and
(c) either:
(i) the loan is repayable on demand made by the connected entity, and repayment is required immediately on the making of the demand, or is required at the end of a particular period after the demand is made (being a period that is not longer than is reasonably necessary to arrange repayment); or
(ii) the loan is repayable on the death of the connected entity (if the connected entity is an individual); and
(d) the arrangement was entered into on or before 30 June 2005;
the arrangement does not give rise to an equity interest in the company. Instead, the arrangement is taken, despite anything in Subdivision 974-B , to give rise to a debt interest in the company. This subsection ceases to have effect on 1 July 2005.
Note:
If this subsection ceases to have effect in relation to an interest that is, according to the other provisions of this Division, an equity interest immediately after the cessation, an adjustment to the company ' s non-share capital account will occur at that time (see subsection 164-15(2) ).
974-75(5)
If, while subsection (4) applies to a *financing arrangement, a circumstance occurs that would otherwise have attracted the operation of subsection 974-110(1) or (2) in relation to the arrangement:
(a) that subsection of section 974-110 does not apply to change the result that subsection (4) of this section produces in relation to the arrangement; but
(b) for the purpose of applying this Division in relation to the arrangement after subsection (4) of this section has ceased to have effect, that subsection of section 974-110 is taken to have produced the result that it would have produced if subsection (4) of this section had not applied to the arrangement.
Further exception for certain related party at call loans
974-75(6)
In applying this Division in relation to a particular *scheme and a particular income year (which may be the income year in which the scheme is entered into or a later income year), the scheme is taken not to give rise to an equity interest in a company, and instead to give rise to a debt interest in the company, if:
(a) the scheme takes the form of a loan to the company that satisfies paragraphs (4)(a), (b) and (c); and
(b) the company ' s *GST turnover (worked out at the end of the income year) is less than $20,000,000.
Note:
If this subsection does not apply in relation to the previous income year or the next income year, and the scheme gives rise to an equity interest according to the other provisions of this Division, an adjustment to the company ' s non-share capital account will occur at the end of the previous income year or the start of the next income year (see subsections 164-15(2) and 164-20(3) ).
974-75(7)
For the purpose of paragraph (6)(b), the question whether a company ' s *GST turnover (worked out at the end of an income year) is less than $20,000,000 is to be determined in accordance with subsection 188-10(2) of the *GST Act, as if that amount of $20,000,000 were a turnover threshold for the purposes of that subsection of the GST Act.
SECTION 974-80 Equity interest arising from arrangement funding return through connected entities 974-80(1)
This section deals with the situation in which:
(a) an interest carries a right to a variable or fixed return from a company; and
(b) the interest is held by a *connected entity of the company; and
(c) apart from this section, the interest would not be an *equity interest in the company; and
(ca) the *scheme that gives rise to the interest is a *financing arrangement for the company; and
(d) there is a scheme, or a series of schemes, designed to operate so that the return to the connected entity is to be used to fund (directly or indirectly) a return to another person (the ultimate recipient ).
974-80(2)
The interest is an equity interest in the company if:
(a) the amount of the return to the ultimate recipient is in substance or effect *contingent on aspects of the economic performance (whether past, current or future) of:
(i) the company; or
(ii) a part of the company's activities; or
(iii) a *connected entity of the company or a part of the activities of a connected entity of the company; or
(b) either the right itself, or the amount of the return to the ultimate recipient, is at the discretion of:
(i) the company; or
(ii) a connected entity of the company; or
(c) the interest in respect of which the return to the ultimate recipient is made or another interest that arises from the scheme, or any of the schemes, referred to in paragraph (1)(d):
(i) gives the ultimate recipient (or a connected entity of the ultimate recipient) a right to be issued with an *equity interest in the company or a connected entity of the company; or
(ii) is an *interest that will, or may, convert into an equity interest in the company or a connected entity of the company;
and if the interest does not form part of a larger interest that is characterised as a *debt interest in the entity in which it is held, or a *connected entity, under Subdivision 974-B . The return may be a return of an amount invested in the interest.
Note 1:
Section 974-90 allows regulations to be made clarifying when a right or return is taken to be at the discretion of a company or connected entity.
Note 2:
Paragraphs (a), (b) and (c) parallel items 2, 3 and 4 of the table in subsection 974-75(1) .
Example:
Company A, Company B1, Company B2 and Company B3 are connected entities.
Company B1 operates Trust Fund C. An interest in Trust Fund C is issued to person H and the return on that interest is contingent on aspects of the economic performance of Company A.
Trust Fund C lends the money paid by H for the purchase of the interest to Company B1 which lends the money to Company B2 which lends the money to Company B3 which lends the money to Company A.
Under the arrangements under which the interest is issued and the loans made, payments of interest by Company A on the loan that Company B3 makes to Company A are intended to pass back through Company B2 and Company B1 to fund the return on H's interest in Trust Fund C.
Under subsection (2), Company B3 will have an equity interest in Company A. If the return to Company B3 were itself contingent on Company A's performance, Company B3's interest would be an equity interest in Company A under item 2 of the table in subsection 974-75(1) (and not under subsection (2) of this section).
Company B2 has an equity interest in Company B3 and Company B1 has an equity interest in Company B2. This is because the returns they get are intended to fund the return on H's interest in Trust Fund C and that return is contingent on aspects of the economic performance of Company A (which is related to both Company B3 and Company B2).
974-80(3)
The interest referred to in paragraph (1)(a) or (2)(c) may take the form of a proprietary right, a chose in action or any other form.
SECTION 974-85 Right or return contingent on aspects of economic performance 974-85(1)
A right, or the amount of a return, is contingent on aspects of the economic performance of an entity, or a part of the entity ' s activities, if the right or return is contingent on the economic performance of that entity, or that part of those activities, but not solely because of one of the following:
(a) the ability or willingness of an entity to meet the obligation to satisfy the right to the return;
(b) the receipts or turnover of the entity or the turnover generated by those activities.
974-85(2)
The regulations may specify circumstances in which a right or return is to be taken to be contingent, or not contingent, on aspects of the economic performance of an entity or a part of an entity ' s activities.
974-85(3)
The regulations may provide that paragraph (1)(b) does not apply in the circumstances specified in the regulations.
974-85(4)
The regulations may provide that an interest that:
(a) is covered by item 2 in the table in subsection 974-75(1) or paragraph 974-80(2)(a) ; and
(b) arises in the circumstances specified in the regulations;
is not an equity interest because of:
(c) the limited extent to which the right or return that the interest carries is *contingent on aspects of the economic performance of an entity or a part of the entity ' s activities; or
(d) the practical insignificance of the right or return that the interest carries being contingent on that performance.
The regulations may specify circumstances in which a right, or the amount of a return, is to be taken to be at the discretion of a company or a *connected entity of the company.
If a *scheme gives rise to an *equity interest in a company because of an item of the table in subsection 974-75(1) , the equity interest consists of the interest referred to in that item.
974-95(2)
If 2 or more *related schemes give rise to an *equity interest in a company because of an item of the table in subsection 974-75(1) , the equity interest consists of the combination of interests under the schemes that satisfy the requirements of that item.
974-95(3)
Subsection 974-80(2) also provides that certain interests are *equity interests in a company.
974-95(4)
If the returns on a *non-share equity interest in a company are payable to 2 or more entities:
(a) each entity is taken to be the holder of a non-share equity interest in the company; and
(b) each entity's non-share equity interest consists of the interests that:
(i) constitute the non-share equity interest; and
(ii) are held by that entity.
974-95(5)
The company in which an *equity interest exists is taken to be the issuer of the interest.
Subdivision 974-D - Common provisions
If a *debt interest is an *interest that will or may convert into an *equity interest, the conversion is taken, for the purposes of this Division to give rise to a new interest (and is not treated merely as a continuation of the debt interest).
974-100(2)
If an *equity interest is an *interest that will or may convert into a *debt interest, the conversion is taken, for the purposes of this Division to give rise to a new interest (and is not treated merely as a continuation of the equity interest).
SECTION 974-105 Effect of action taken in relation to interest arising from related schemes 974-105(1)
If:
(a) a *scheme, or schemes, give rise to a *debt interest in an entity or an *equity interest in a company; and
(b) the entity or company pays a return, or undertakes any other transaction, in respect of any of the following (the component element ):
(i) the scheme; or
(ii) a part of the scheme; or
(iii) one of those schemes; or
(iv) a part of one of those schemes;
then, for the purposes of the provisions that subsection (2) covers, the return is taken to be paid, or the transaction to have been undertaken, in respect of the debt interest or equity interest and not in respect of the component element.
Example:
Company A issues a convertible note to Company B. Company C, a connected entity of Company B, provides a binding collateral undertaking to Company A that Company B will exercise the option to convert the note into shares in Company A. The convertible note and the undertaking are related schemes that may give rise to an equity interest in Company A if their combined effect satisfies section 974-70 . If so, the returns on the note are taken to be returns in respect of the equity interest.
974-105(2)
This subsection covers:
(a) the provisions of this Division (other than this section); and
(b) any other provision of this Act whose operation depends on an expression whose meaning is given by this Division.
SECTION 974-110 Effect of material change
Change to existing scheme - general rule
974-110(1)
If:
(a) a *scheme or schemes give rise to a *debt interest (or an *equity interest) in a company; and
(b) the scheme, or one or more of the schemes, are subsequently changed, including where one or more (but not all) of the schemes cease to exist; and
(c) the scheme or schemes as they exist immediately after the change would give rise to an equity interest (or a debt interest) in the company if they came into existence when the change occurred; and
(d) subsection (1A) does not apply to the change;
this Division applies after the change as if the scheme or schemes as they exist immediately after the change came into existence when the change occurred.
Note 1:
This will mean that the characterisation of the interest will change at that time.
Note 2:
This section can apply to an interest a number of times so that, for example, an interest that is equity when issued may change to debt because of one subsequent change and then back to equity because of a later change.
Note 3:
There will be an adjustment to the company ' s non-share capital account when the change occurs (see subsections 164-15(2) and 164-20(3) ).
Change to existing scheme - special rule for changing a related party at call etc. loan to a private company from equity to debt
974-110(1A)
If:
(a) a *scheme takes the form of a loan that satisfies paragraphs 974-75(4)(a), (b) and (c) ; and
(b) the scheme gives rise to an *equity interest (disregarding the effect this subsection has on the characterisation of the interest because of the change referred to in paragraph (c) of this subsection); and
(c) the scheme is subsequently changed; and
(d) the change occurs in the period starting immediately after the end of a particular income year (the year of effect ) and ending at the end of the earlier of the following days:
(i) the due date for lodgment of the company ' s *income tax return for the year of effect;
(ii) the date of lodgment of the company ' s income tax return for the year of effect; and
(e) the scheme, as it exists immediately after the change, would give rise to a *debt interest in the company if the interest came into existence when the change occurred; and
(f) the company is a *private company in relation to the year of effect; and
(g) subsection 974-75(6) does not apply in relation to the loan and the year of effect; and
(h) the company elects that this subsection is to apply to the change;
this Division applies as if the scheme, as it exists immediately after the change, had come into existence at the start of the year of effect, and as if no other change of a kind referred to in subsection (1) had occurred in relation to the interest in the period commencing at the start of the year of effect and ending when the first-mentioned change was made.
Note 1:
This will mean that:
Note 2:
This section can apply to an interest a number of times so that, for example, an interest that is an equity interest when issued may change to debt because of one subsequent change and then back to equity because of a later change.
Note 3:
An adjustment to the company ' s non-share capital account will be taken to have occurred at the start of the year of effect (see subsection 164-20(3) ).
974-110(1B)
An election for the purposes of paragraph (1A)(h):
(a) must be in writing; and
(b) can only be made in the period referred to in paragraph (1A)(d); and
(c) cannot be revoked.
Entering into a new related scheme
974-110(2)
If:
(a) a *scheme or schemes give rise to a *debt interest (or an *equity interest) in a company; and
(b) the company subsequently enters into, participates in or causes another entity to enter into or participate in a new *related scheme; and
(c) the scheme or schemes, together with:
(i) the new related scheme; and
would give rise to an equity interest (or a debt interest) in the company if they all came into existence when the new related scheme is entered into;
(ii) any other related scheme that the entity (or company) enters into, participates in or causes another entity to enter into or participate in before the new related scheme is entered into;
this Division applies after the new related scheme is entered into as if all the schemes referred to in paragraph (c) had come into existence when the new related scheme is entered into.
Note 1:
This will mean that the characterisation of the interest will change at that time.
Note 2:
This section can apply to an interest a number of times so that, for example, an interest that is equity when issued may change to debt because of one subsequent change and then back to equity because of a later change.
Note 3:
There will be an adjustment to the company ' s non-share capital account when the change occurs (see subsections 164-15(2) and 164-20(3) ).
All prior changes to be taken into account
974-110(3)
In applying paragraphs (1)(c), (1A)(e) and (2)(c) to the *scheme or schemes, take into account:
(a) all changes to the scheme or schemes that occur before the change or before the new related scheme is entered into; and
(b) all *related schemes entered into before the change or before the new related scheme is entered into; and
(c) all changes to related schemes referred to in paragraph (b) that occur before the change or before the new related scheme is entered into.
SECTION 974-112 Determinations by Commissioner
Determinations covered by this section
974-112(1)
This section covers a determination by the Commissioner under any of the following provisions:
(a) subsection 974-15(4) ;
(b) subsection 974-60(3) , (4) or (5);
(c) section 974-65 ;
(d) subsection 974-70(4) ;
(e) subsection 974-150(1) .
Determination on own initiative or on application
974-112(2)
The Commissioner may make a determination covered by this section:
(a) on his or her own initiative; or
(b) on an application made under subsection (3).
Application for determination
974-112(3)
An entity may apply to the Commissioner for a determination covered by this section in relation to:
(a) an interest of which the entity is the issuer; or
(b) an interest of which the entity would be the issuer:
(i) if the determination were made; or
(ii) if the determination were not made.
Note:
Paragraph (b) may apply, for example, if the effect of the determination applied for would be to allow, or to prevent, a number of related schemes giving rise to a debt interest or an equity interest.
974-112(4)
The application:
(a) must be in writing; and
(b) must set out the grounds on which the applicant thinks the determination should be made; and
(c) must set out any information relevant to deciding whether to make the determination.
Review of determinations
974-112(5)
A taxpayer who is dissatisfied with a determination covered by this section may object against the determination in the manner set out in Part IVC of the Taxation Administration Act 1953 .
Subdivision 974-E - Non-share distributions by a company
A company makes a non-share distribution to you if:
(a) you hold a *non-share equity interest in the company; and
(b) the company:
(i) distributes money to you; or
(ii) distributes other property to you; or
as the holder of that interest.
(iii) credits an amount to you;
Subject to subsection (2), all *non-share distributions are non-share dividends .
974-120(2)
A *non-share distribution is not a non-share dividend to the extent to which the company debits the distribution against:
(a) the company's *non-share capital account; or
(b) the company's *share capital account.
SECTION 974-125 974-125 Meaning of non-share capital return
A non-share capital return is a *non-share distribution to the extent to which it is not a *non-share dividend.
A *scheme is a financing arrangement for an entity if it is entered into or undertaken:
(a) to raise finance for the entity (or a *connected entity of the entity); or
(b) to fund another scheme, or a part of another scheme, that is a *financing arrangement under paragraph (a); or
(c) to fund a return, or a part of a return, payable under or provided by or under another scheme, or a part of another scheme, that is a financing arrangement under paragraph (a).
974-130(2)
The following are examples of *schemes that are generally entered into or undertaken to raise finance:
(a) a bill of exchange;
(b) income securities;
(c) a *convertible interest that will convert into an *equity interest.
Note:
Paragraph (a) is likely to be relevant for debt interests, paragraph (b) for equity interests and paragraph (c) for both.
974-130(3)
The following are examples of *schemes that are generally not entered into or undertaken to raise finance:
(a) a derivative that is used solely for managing financial risk;
(b) a contract for personal services entered into in the ordinary course of a business.
Note:
These may be relevant for both debt interests and equity interests.
974-130(4)
For the purposes of subsection (1), the following *schemes are taken not to be entered into or undertaken to raise finance:
(a) a lease or bailment that satisfies all of the following:
(i) the property leased or bailed is not property to which Division 16D of Part III of the Income Tax Assessment Act 1936 (arrangements relating to the use of property) applies;
(ii) the lease or bailment is not a relevant agreement for the purposes of section 128AC of that Act (deemed interest in respect of hire-purchase and certain other arrangements);
(iii) the lease or bailment is not an *arrangement to which Division 240 of this Act (about arrangements treated as a sale and loan), or Division 242 of this Act (about luxury car leases), applies;
(iv) (Repealed by No 79 of 2010 )
(v) the lessee or bailee, or a *connected entity of the lessee or bailee, is not to, and does not have an obligation (whether contingent or not) or a right to, acquire the leased or bailed property;
(vi) Division 250 of this Act does not apply to a person and the property leased or bailed;
(b) a securities lending arrangement under section 26BC of the Income Tax Assessment Act 1936 ;
(c) a life insurance or general insurance contract undertaken as part of the issuer ' s ordinary course of business;
(d) a scheme for the payment of royalties (within the meaning of the Income Tax Assessment Act 1936 ) other than:
(i) a qualifying arrangement for the purposes of Division 16D of Part III of the Income Tax Assessment Act 1936 ; or
(ii) a relevant agreement for the purposes of section 128AC of that Act; or
(iii) a scheme or arrangement for the payment of royalties in relation to an asset if Division 250 of this Act applies to a person and the asset.
974-130(5)
The regulations may:
(a) specify that particular *schemes are not financing arrangements ; and
(b) specify circumstances in which a scheme will not be a financing arrangement .
SECTION 974-135 Effectively non-contingent obligation 974-135(1)
There is an effectively non-contingent obligation to take an action under a *scheme if, having regard to the pricing, terms and conditions of the scheme, there is in substance or effect a non-contingent obligation (see subsections (3) , (4) and (6) ) to take that action.
974-135(2)
Without limiting subsection (1) , that subsection applies to: (a) providing a *financial benefit under the *scheme; or (b) terminating the scheme.
974-135(3)
An obligation is non-contingent if it is not contingent on any event, condition or situation (including the economic performance of the entity having the obligation or a *connected entity of that entity), other than the ability or willingness of that entity or connected entity to meet the obligation.
974-135(4)
The existence of the right of the holder of an *interest that will or may convert into an *equity interest in a company to convert the interest does not of itself make the issuer's obligation to repay the investment not non-contingent.
974-135(5)
An obligation to redeem a preference share is not contingent merely because there is a legislative requirement for the redemption amount to be met out of profits or a fresh issue of *equity interests.
974-135(6)
In determining whether there is in substance or effect a non-contingent obligation to take the action, have regard to the artificiality, or the contrived nature, of any contingency on which the obligation to take the action depends.
Note:
The artificiality, or the contrived nature, of a contingency would tend to indicate that there is, in substance or effect, a non-contingent obligation to take that action.
974-135(7)
An obligation of yours is not effectively non-contingent merely because you will suffer some detrimental practical or commercial consequences if you do not fulfil the obligation.
Note:
For example, a contingent obligation to make payments in respect of an income security issued by an approved deposit-taking institution (ADI) is not effectively non-contingent merely because of the detrimental effect non-payment would have on the ADI's business.
974-135(8)
The regulations may make further provisions relating to the following: (a) what constitutes a non-contingent obligation; (b) what does not constitute a non-contingent obligation; (c) what constitutes an *effectively non-contingent obligation; (d) what does not constitute an effectively non-contingent obligation.
SECTION 974-140 Ordinary debt interest 974-140(1)
A *debt interest arising from a scheme is an ordinary debt interest if none of the obligations under the scheme is in substance or effect *contingent on aspects of the economic performance of:
(a) the issuer of the interest; or
(b) a *connected entity; or
(c) a part of the operations of the issuer or a connected entity.
974-140(2)
The regulations may specify rules for determining whether a *debt interest is an *ordinary debt interest.
The benchmark rate of return for an interest (the test interest) in an entity is the annually compounded internal rate of return on an *ordinary debt interest that:
(a) is issued, immediately before the test interest is issued, by the entity, or an equivalent entity, to an entity that is not a *connected entity; and
(b) has a comparable maturity date; and
(c) is in the same currency; and
(d) is issued in the same market; and
(e) has the same credit status; and
(f) has the same degree of subordination to debts owed to the ordinary creditors of the issuer.
974-145(2)
If there is no interest that satisfies subsection (1), the benchmark rate of return for the test interest is the annually compounded internal rate of return on an interest that is closest to the test interest in the respects referred to in that subsection (adjusted appropriately to take account of the differences between that interest and the test interest).
974-145(3)
The regulations may:
(a) specify the meaning to be given to an expression used in this section; or
(b) provide for a different method of determining the *benchmark rate of return.
SECTION 974-150 Schemes 974-150(1)
The Commissioner:
(a) may determine that what would otherwise be a single *scheme is to be treated for the purposes of this Division as 2 or more separate schemes; and
(b) may determine that the schemes are to be taken for the purposes of this Division to not be *related schemes.
974-150(2)
Without limiting subsection 974-10(5) , the Commissioner must, in exercising the power to make a determination under subsection (1), have regard to the following:
(a) the purpose of the *scheme (considered both as a whole and in terms of its individual components);
(b) the effects of the scheme and each of its components (considered both as a whole and in terms of its individual components);
(c) the rights and obligations of the parties to the scheme (considered both as a whole and in relation to its individual components);
(d) whether the scheme (when considered as a whole or in terms of its individual components) provides the basis for, or underpins, an interest issued to investors with the expectation that the interest can be assigned to other investors;
(e) whether the scheme (when considered as a whole or in terms of its individual components) comprises a set of rights and obligations issued to investors with the expectation that it can be assigned to other investors;
(f) any other relevant circumstances.
974-150(3)
The regulations:
(a) may provide that, in the circumstances specified in the regulations, what would otherwise be a single *scheme is to be treated for the purposes of this Division as 2 or more separate schemes; and
(b) may provide that the schemes are to be taken for the purposes of this Division to not be *related schemes.
SECTION 974-155 Related schemes 974-155(1)
Subject to subsection (3), 2 *schemes are related to one another if they are related to one another in any way.
974-155(2)
Without limiting subsection (1), 2 *schemes are related to each other if:
(a) the schemes are based on stapled instruments; or
(b) one of the schemes would, from a commercial point of view, be unlikely to be entered into unless the other scheme was entered into; or
(c) one of the schemes depends for its effect on the operation of the other scheme; or
(d) one scheme complements or supplements the other; or
(e) there is another scheme to which both the schemes are related because of a previous application or applications of this subsection.
974-155(3)
Two *schemes are not related to one another merely because:
(a) one refers to the other; or
(b) they have a common party.
974-155(4)
The regulations may specify circumstances in which 2 *schemes:
(a) are taken to be related to one another; or
(b) are taken not to be related to one another.
SECTION 974-160 Financial benefit 974-160(1)
In this Act:
(a) means anything of economic value; and
(b) includes property and services; and
(c) includes anything that regulations made for the purposes of subsection (3) provide is a financial benefit;
even if the transaction that confers the benefit on an entity also imposes an obligation on the entity.
974-160(2)
In applying subsection (1), benefits and obligations are to be looked at separately and not set off against each other.
974-160(3)
The regulations may provide that a thing specified in the regulations is a financial benefit for the purposes of this Act.
SECTION 974-165 974-165 Convertible and converting interests
An interest (the first interest ) is an interest that will or may convert into another interest (the second interest ) if:
(a) the first interest, or a part of the first interest, must be or may be converted into the second interest; or
(b) the first interest, or a part of the first interest, must be or may be redeemed, repaid or satisfied by:
(i) the issue or transfer of the second interest (whether to the holder of the first interest or to some other person); or
(ii) the acquisition of the second interest (whether by the holder of the first interest or by some other person); or
(iii) the application in or towards paying-up (in whole or in part) the balance unpaid on the second interest (whether the second interest is to be issued to the holder of the first interest or to some other person); or
(c) the holder of the first interest has, or is to have, a right or option to have allotted or transferred to the holder or to some other person, or for the holder or some other person otherwise to acquire:
(i) the second interest; or
(ii) a right or option to acquire the second interest.
(Repealed by No 41 of 2005)
A person is in a position to affect rights of a company in relation to another company if the person has a right, power or option:
(a) to acquire those rights from one or other of those companies; or
(b) to do something that would prevent one or other of those companies from exercising its rights for its own benefit, or from receiving any benefit arising from having those rights.
975-150(2)
It does not matter whether the person has the right, power or option because of the *constitution of one or other of those companies, any agreement or otherwise.
975-150(3)
However, the right, power or option of an owner of *ownership interests in the *head entity of a *demerger group to *acquire, under a *demerger, ownership interests in the *demerged entity is not a right, power or option covered by subsection (1).
SECTION 975-155 975-155 When is an entity a controller (for CGT purposes) of a company?
An entity (the first entity ) is a controller (for CGT purposes) of a company if:
(a) the first entity has an *associate-inclusive control interest in the company of at least 50%; or
(b) the first entity has an associate-inclusive control interest in the company of at least 40% and entities other than the first entity or associates of the first entity do not control the company; or
(c) the first entity controls the company (alone or with an *associate).
An entity has an associate-inclusive control interest in a company in the circumstances set out in Subdivision A of Division 3 of Part X of the Income Tax Assessment Act 1936 .
975-160(2)
However, in working out whether an entity has an associate-inclusive control interest of a particular percentage for the purposes of section 975-155 , there are these modifications to the way Part X of that Act operates:
(a) that Part is applied to any company, including one acting as a trustee; and
(b) subsection 349(4) applies in all cases in working out which entity holds a direct control interest or a control tracing interest equal to 100%; and
(c) subsections 350(6) and (7) and 355(1) are ignored; and
(d) despite subsection 352(2) , an interposed entity may be taken into account in calculating an indirect control interest if the interposed entity is:
(i) a company of which the first entity or an *associate is a controller; or
(ii) a partnership or a trust; and
(e) section 354 applies as if it referred to partnerships rather than CFP ' s; and
(f) section 355 applies as if it referred to trusts rather than CFT ' s.
Note 1:
Part X of the Income Tax Assessment Act 1936 defines company to exclude a company in the capacity of a trustee.
Note 2:
The terms direct control interest and control tracing interest are relevant to working out associate-inclusive control interests in a company: see sections 350 , 351 , 353 , 354 and 355 of that Act.
Note 3:
Under subsection 349(4) of that Act, if 2 or more entities would have a direct control interest or a control tracing interest in a company or trust equal to 100%, only one of them holds the interest.
Note 4:
Subsections 350(6) and (7) of that Act deal with direct control interests in a company. They deal with interests held by Australian entities. Under subsection 355(1) , certain entities are taken to hold a control tracing interest in a trust equal to 100%.
Note 5:
Paragraphs (2)(d), (e) and (f) of this section are necessary because Part X of the Income Tax Assessment Act 1936 applies only to CFE ' s (which comprise CFC ' s, CFP ' s and CFT ' s).
Subdivision 975-G - What is a company ' s share capital account?
A company ' s share capital account is:
(a) an account that the company keeps of its share capital; or
(b) any other account (whether or not called a share capital account) that satisfies the following conditions:
(i) the account was created on or after 1 July 1998;
(ii) the first amount credited to the account was an amount of share capital.
975-300(2)
If a company has more than one account covered by subsection (1), the accounts are taken, for the purposes of this Act, to be a single account.
Note:
Because the accounts are taken to be a single account (the combined share capital account ), tainting of any of the accounts has the effect of tainting the combined share capital account.
975-300(3)
However, if a company ' s *share capital account is *tainted, that account is taken not to be a share capital account for the purposes this Act, other than:
(a) subsection 118-20(6) ; and
(b) Division 197 ; and
(ba) paragraph 202-45(e) ; and
(c) the definition of paid-up share capital in subsection 6(1) of the Income Tax Assessment Act 1936 ; and
(d) subsection 44(1B) of the Income Tax Assessment Act 1936 ; and
(e) (Repealed by No 79 of 2007 )
(f) subsection 159GZZZQ(5) of the Income Tax Assessment Act 1936 .
Subdivision 975-W - Wholly-owned groups of companies SECTION 975-500 975-500 Wholly-owned groups
Two companies are members of the same wholly-owned group if:
(a) one of the companies is a *100% subsidiary of the other company; or
(b) each of the companies is a *100% subsidiary of the same third company. SECTION 975-505 What is a 100% subsidiary? 975-505(1)
A company (the subsidiary company ) is a 100% subsidiary of another company (the holding company ) if all the *shares in the subsidiary company are beneficially owned by:
(a) the holding company; or
(b) one or more 100% subsidiaries of the holding company; or
(c) the holding company and one or more 100% subsidiaries of the holding company.
975-505(2)
However, the subsidiary company is not a 100% subsidiary of the holding company if a person is *in a position to affect rights, in relation to the subsidiary company, of:
(a) the holding company; or
(b) a 100% subsidiary of the holding company.
975-505(3)
The subsidiary company is also not a 100% subsidiary of the holding company if at some future time a person will be *in a position to affect rights as described in subsection (2).
975-505(4)
A company (other than the subsidiary company) is a 100% subsidiary of the holding company if, and only if:
(a) it is a 100% subsidiary of the holding company; or
(b) it is a 100% subsidiary of a 100% subsidiary of the holding company;
because of any other application or applications of this section.
Division 976 - Imputation
The franked part of a *distribution is an amount worked out using the formula:
| *Franking credit on the distribution | × | Applicable gross-up rate |
where:
applicable gross-up rate
means the *corporate tax gross-up rate of the entity making the distribution for the income year in which the distribution is made.
The unfranked part of a *distribution is the amount that is left after deducting the *franked part of the distribution from the total distribution.
The part of a distribution that is franked with an exempting credit is worked out using the formula:
| *Exempting credit on the distribution | × | Applicable gross-up rate |
where:
applicable gross-up rate
means the *corporate tax gross-up rate of the entity making the distribution for the income year in which the distribution is made.
The part of a distribution that is franked with a venture capital credit is worked out using the formula:
| *Venture capital credit on the distribution | × | Applicable gross-up rate |
where:
applicable gross-up rate
means the *corporate tax gross-up rate of the entity making the distribution for the income year in which the distribution is made.
For a *CGT asset, a realisation event is a *CGT event (except CGT event E4, CGT event E10 and CGT event G1).
A loss is realised for income tax purposes by a *realisation event that happens to a *CGT asset if, and only if, an entity makes a *capital loss from the event. That capital loss is the loss realised by the event.
977-10(2)
If a provision of this Act reduces the loss that would, apart from that provision, be *realised for income tax purposes by the event, the *capital loss is reduced by the same amount.
SECTION 977-15 Gain realised for income tax purposes 977-15(1)
A gain is realised for income tax purposes by a *realisation event that happens to a *CGT asset if, and only if, an entity makes a *capital gain from the event. That capital gain is the gain that is realised by the event.
977-15(2)
If a provision of this Act reduces the gain that would, apart from that provision, be *realised for income tax purposes by the event, the *capital gain is reduced by the same amount.
Trading stock SECTION 977-20 977-20 Realisation event
For an item of *trading stock, a realisation event is a disposal of the item or the ending of an income year.
A loss is realised for income tax purposes by a *realisation event consisting of disposal of an item of *trading stock if, and only if:
(a) the item is disposed of, for less than its *cost, in the same income year in which it became part of the trading stock on hand of the entity disposing of it; or
(b) the item is disposed of in a later income year for less than its *value as trading stock of the entity on hand at the start of the later income year.
977-25(2)
The loss that is realised for income tax purposes by the event is the difference between the amount included in the entity's assessable income because of the disposal and:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as *trading stock on hand at the start of the later income year;
as appropriate.
977-25(3)
If a provision of this Act reduces the loss that would, apart from that provision, be *realised for income tax purposes by the event:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as *trading stock on hand at the start of the later income year;
as appropriate, is reduced by the same amount.
A loss is realised for income tax purposes by a *realisation event that happens to an item of *trading stock and consists of the ending of an income year if, and only if, the *value of the item, as trading stock of an entity on hand at the end of that income year, is less than:
(a) its *cost, if it became part of the trading stock on hand of the entity during that income year; or
(b) otherwise, its value as trading stock of the entity on hand at the start of that income year.
977-30(2)
The loss that is realised for income tax purposes by the event is the difference between the *value of the item, as *trading stock of the entity on hand at the end of that income year and:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as trading stock on hand at the start of the income year;
as appropriate.
977-30(3)
If a provision of this Act reduces the loss that would, apart from that provision, be *realised for income tax purposes by the event:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as *trading stock on hand at the start of the income year;
as appropriate, is reduced by the same amount.
SECTION 977-35 Disposal of trading stock: gain realised for income tax purposes 977-35(1)
A gain is realised for income tax purposes by a *realisation event consisting of disposal of an item of *trading stock if, and only if:
(a) the item is disposed of, for more than its *cost, in the same income year in which it became part of the trading stock on hand of the entity disposing of it; or
(b) the item is disposed of in a later income year for more than its *value as trading stock of the entity on hand at the start of the later income year.
977-35(2)
The gain that is realised for income tax purposes by the event is the difference between the amount included in the entity's assessable income because of the disposal and:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as *trading stock on hand at the start of the later income year;
as appropriate.
977-35(3)
If a provision of this Act reduces the gain that would, apart from that provision, be *realised for income tax purposes by the event, the amount that is included in the assessable income of the entity because of the disposal is reduced by the same amount.
SECTION 977-40 Ending of an income year: gain realised for income tax purposes 977-40(1)
A gain is realised for income tax purposes by a *realisation event that happens to an item of *trading stock and consists of the ending of an income year if, and only if, the *value of the item, as trading stock of an entity on hand at the end of that income year, is greater than:
(a) its *cost, if it became part of the trading stock on hand of the entity during that income year; or
(b) otherwise, its value as trading stock of the entity on hand at the start of that income year.
977-40(2)
The gain that is realised for income tax purposes by the event is the difference between the *value of the item, as *trading stock of the entity on hand at the end of that income year and:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as trading stock on hand at the start of the income year;
as appropriate.
977-40(3)
If a provision of this Act reduces the gain that would, apart from that provision, be *realised for income tax purposes by the event:
(a) the amount that the entity can deduct for the item's *cost; or
(b) the item's *value as *trading stock on hand at the start of the income year;
as appropriate, is increased by the same amount.
Revenue assets SECTION 977-50 977-50 Meaning of revenue asset
A *CGT asset is a revenue asset if, and only if:
(a) the profit or loss on your disposing of the asset, ceasing to own it, or otherwise realising it, would be taken into account, in calculating your assessable income or *tax loss, otherwise than as a *capital gain or *capital loss; and
(b) the asset is neither *trading stock nor a *depreciating asset.
For a *revenue asset:
(a) disposing of, ceasing to own, or otherwise realising, the asset is a realisation event ; and
(b) a loss is realised for income tax purposes by the *realisation event if, and only if, there is a loss on the event; and
(c) a gain is realised for income tax purposes by the realisation event if, and only if, there is a profit on the event; and
(d) the loss or profit on the event is the loss or gain realised for income tax purposes; and
(e) if a provision of this Act reduces the loss or gain that would, apart from that provision, be realised for income tax purposes by the event, the loss or profit to be taken into account in calculating your assessable income or *tax loss is reduced by the same amount.
A dwelling is used to provide affordable housing if certain conditions are met, including that the dwelling is tenanted or available to be tenanted, and that tenancies of the dwelling are exclusively managed by a community housing provider.
SECTION 980-5 980-5 Providing affordable housing
A *dwelling is used to provide affordable housing on a particular day (the test day ) if:
(a) on the test day, the dwelling is *taxable Australian real property and is *residential premises that:
(i) are tenanted or available to be tenanted; and
(ii) are not *commercial residential premises; and
(b) on the test day, the tenancy or prospective tenancy of the dwelling is exclusively managed by an *eligible community housing provider; and
(c) the eligible community housing provider has given each entity that holds an *ownership interest in the dwelling a certificate under section 980-15 that covers the dwelling for the test day; and
(d) no entity is entitled to receive an incentive, under the Scheme prescribed for the purposes of Part 2 of the National Rental Affordability Scheme Act 2008 , for the dwelling for the NRAS year (within the meaning of that Scheme) that includes the test day; and
(e) in the case of a *managed investment trust holding an *ownership interest in the dwelling on the test day - none of the tenants or occupants of the dwelling on that day holds an interest in the trust that passes the *non-portfolio interest test at any time during that day.
An eligible community housing provider is:
(a) an entity registered (however described) under an *Australian law as a provider of community housing services; or
(b) an entity registered (however described) by an *Australian government agency as a provider of community housing services.
980-10(2)
However, an entity that ceases to be covered by subsection (1) continues to be an eligible community housing provider for the 90-day period starting on the day of the cessation.
For the purposes of paragraph 980-5(c) , a certificate must:
(a) include a declaration that the *eligible community housing provider reasonably believes paragraphs 980-5(a) and (b) to be satisfied for the *dwelling for the test day; and
(b) be given in the *approved form on or before the 31st day after the end of the income year that contains the test day.
In this Act, except so far as the contrary intention appears:
4% manner
has the meaning given by section
43-145
.
70% DFE rule
has the meaning given by section
394-35
.
95% services indirect value shift
has the meaning given by section
727-700
.
100% subsidiary
has the meaning given by section
975-505
.
165-CC tagged asset
has the meaning given by section
715-30
.
170-D deferred loss
has the meaning given by section
715-310
.
AAT
(Repealed by No 38 of 2024)
ABN
has the meaning given by the
A New Tax System (Australian Business Number) Act 1999
.
abnormal income
(Repealed by No 77 of 2001)
abnormal trading
has the meaning given by Subdivision
960-H
.
Aboriginal
(Repealed by No 84 of 2013)
above-average special professional income
has the meaning given by section
405-15
.
ACA
(Repealed by No 45 of 2005)
acceptable amount
of an instalment for an
*
instalment quarter has the meaning given by section
45-232
in Schedule
1
to the
Taxation Administration Act 1953
.
accountable membership interest
has the meaning given by section
208-30
.
accountable partial interest
has the meaning given by section
208-35
.
account-based annuity
has the meaning given by the
Superannuation Industry (Supervision) Regulations 1994
.
accounting principles
:
A matter is in accordance with
accounting principles
if it is in accordance with:
(a) *accounting standards; or
(b) if there are no accounting standards applicable to the matter - authoritative pronouncements of the Australian Accounting Standards Board that apply to the preparation of financial statements.
accounting principles for tax cost setting
has the meaning given by:
(a) subsection 705-70(3) ; and
(b) subsection 711-45(1A) .
accounting standards
has the same meaning as in the
Corporations Act 2001
.
accrued default amount
(Repealed by No 89 of 2013)
accrued leave transfer payment
has the meaning given by subsection
26-10(2)
.
accumulated AASL debt
has the meaning given by section 35 of the
Australian Apprenticeship Support Loans Act 2014
.
accumulated ABSTUDY SSL debt
has the meaning given by section
9C
of the
Student Assistance Act 1973
.
accumulated HELP debt
has the meaning given by section
140-25
of the
Higher Education Support Act 2003
.
accumulated SSL debt
has the meaning given by section
1061ZVEC
of the
Social Security Act 1991
.
accumulated TSL debt
(Repealed by No 61 of 2023)
accumulated VETSL debt
has the same meaning as in the
VET Student Loans Act 2016
.
accumulation phase value
of a *superannuation interest has the meaning given by subsection
307-205(2)
.
ACNC type of entity
means an entity that meets the description of a type of entity in column 1 of the table in subsection 25-5(5) of the
Australian Charities and Not-for-profits Commission Act 2012
.
(a) a * CGT asset: you acquire a CGT asset (in its capacity as a CGT asset) in the circumstances and at the time worked out under Division 109 (including under a provision listed in Subdivision 109-B ); and
Note:
A CGT asset acquired before 20 September 1985 may be treated as having been acquired on or after that day: see, for example, Division 149 .
(b) an item of * intellectual property: an entity does not acquire an item of intellectual property merely because a licence relating to a patent, design or copyright is surrendered to the entity.
acquisition time
has the meaning given by section
58-5
.
acquisition year
has the meaning given by section
58-5
.
active asset
has the meaning given by section
152-40
.
active foreign business asset
of a company that is a foreign resident has the meaning given by section
768-540
.
active foreign business asset percentage
of a company has the meaning given by section
768-510
.
(a) in a * scheme under which there is a * direct value shift, has the meaning given by subsection 725-65(2) ; and
(b) in a * scheme under which there is an * indirect value shift, has the meaning given by subsection 727-530(3) .
actual cost method
of working out the *value of a *registered emissions unit has the meaning given by section
420-53
.
actuary
means a Fellow or Accredited Member of the Institute of Actuaries of Australia.
additional investment requirements for ESVCLPs
has the meaning given by subsection
118-428(1)
.
ADI
(authorised deposit-taking institution) means a body corporate that is an ADI for the purposes of the
Banking Act 1959
.
ADI equity capital
of an entity at a particular time means the total of the following:
(a) all the entity ' s * equity capital at that time; and
(b) the total value of all the * debt interests * issued by the entity that satisfy all of the following:
(i) at that time, the interests are * on issue and have been on issue for 90 days or more;
(ii) none of the interests gives rise to any cost, at any time, that is covered by paragraph 820-40(1)(a) .
A debt interest is treated as having satisfied subparagraph (b)(i) at that time if it was on issue at that time, and the total period for which it remains on issue is 90 days or more.
adjacent land
has the meaning given by subsection
118-120(2)
.
adjacent structure
has the meaning given by subsection
118-120(6)
.
adjustable value
:
(a)
of a
*
depreciating asset, has the meaning given by section
40-85
; and
(ba) of an asset, for the purposes of determining the consequences of a choice under any of sections 715-100 , 715-105 , 715-125 , 715-130 and 715-185 , has the meaning given by section 715-145 ; and
(b) of an * equity or loan interest:
(i) for the purposes of determining the consequences of a * direct value shift - has the meaning given by sections 725-240 , 725-315 and 725-325 ; and
(ii) for the purposes of determining the consequences of an * indirect value shift - has the meaning given by sections 727-830 , 727-835 and 727-840 .
adjustable value method
means the method (for determining the effect of
*
indirect value shifts) for which Subdivision
727-H
provides.
adjusted assessed tax
has the meaning given by section
45-375
in Schedule
1
to the
Taxation Administration Act 1953
.
adjusted assessed taxable income
has the meaning given by section
45-370
in Schedule
1
to the
Taxation Administration Act 1953
.
adjusted available frankable profits
has the meaning given by subsection
215-25(2)
.
adjusted average debt
has the meaning given by sections
820-85
,
820-120
,
820-185
and
820-225
.
adjusted average equity capital
has the meaning given by sections
820-300
,
820-330
,
820-589
and
820-613
.
adjusted Division 6 percentage
,
in relation to a trust estate, has the same meaning as in
Division 6 of Part III
of the
Income Tax Assessment Act 1936
.
adjusted net third party interest expense
has the meaning given by section
820-54
.
adjusted on-lent amount
has the meaning given by sections
820-100
,
820-200
and
820-210
.
adjusted tax
on
*
adjusted taxable income or on
*
adjusted withholding income has the meaning given by section
45-340
in Schedule
1
to the
Taxation Administration Act 1953
.
adjusted taxable income
has the meaning given by sections
45-330
and
45-480
in Schedule
1
to the
Taxation Administration Act 1953
.
adjusted taxable income for offsets
means adjusted taxable income for rebates within the meaning of subsection
6(1)
of the
Income Tax Assessment Act 1936
.
adjusted unrealised loss
at an
*
alteration time for a company has the meaning given by section
165-115U
.
adjusted withholding income
has the meaning given by sections
45-335
and
45-485
in Schedule
1
to the
Taxation Administration Act 1953
.
adopted child
of a person means someone the person has adopted:
(a) under a * State law or * Territory law about adoption of children; or
(b) under a * foreign law about adoption of children, if the adoption would be recognised as valid under a State law or Territory law.
affected interest
:
(a)
in the
*
losing entity for an
*
indirect value shift, has the meaning given by section
727-460
; or
(b) in the * gaining entity for an indirect value shift, has the meaning given by section 727-465 .
affected owner
:
(a)
of
*
down interests, has the meaning given by section
725-80
; and
(b) of * up interests, has the meaning given by section 725-85 ; and
(c) for an * indirect value shift, has the meaning given by section 727-530 .
affiliate
has the meaning given by section
328-130
.
AFOF
means an
*
Australian venture capital fund of funds.
agent
: this Act applies to some entities that are not agents in the same way as it applies to agents: see section
960-105
.
aggregated turnover
has the meaning given by section
328-115
.
Agriculture Department
means the Department administered by the Minister administering the
Farm Household Support Act 2014
.
Agriculture Minister
(Repealed by No 110 of 2014)
Agriculture Secretary
means the Secretary of the *Agriculture Department.
alienated personal services payment
has the meaning given by section
13-10
in Schedule
1
to the
Taxation Administration Act 1953
.
All Groups Consumer Price Index number
means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician.
allocable cost amount
has the meaning given by section
705-60
and subsection
711-20(1)
.
allocated annuity
means an
*
immediate annuity that satisfies the requirements of subregulation 1.05(4) of the Superannuation Industry (Supervision) Regulations.
allocated pension
means a
*
current pension that satisfies the requirements of subregulation 1.06(4) of the Superannuation Industry (Supervision) Regulations.
allowable capital expenditure
(Repealed by No 77 of 2001)
allowable OB deduction
has the meaning given by subsection
121EF(2)
of the
Income Tax Assessment Act 1936
.
allowance component
(Repealed by No 96 of 2014)
alteration time
:
(a)
for a company has the meaning given by sections
165-115L
,
165-115M
,
165-115N
,
165-115P
,
165-115Q
,
715-245
,
715-250
and
719-725
; and
(b) for a trust, has the meaning given by section 715-270 .
AMIT
(short for
attribution managed investment trust
) has the meaning given by section
276-10
.
AMIT cost base increase amount
has the meaning given by section
104-107E
.
AMIT cost base net amount
has the meaning given by section
104-107C
.
AMIT cost base reduction amount
has the meaning given by section
104-107D
.
AMIT DIR payment
has the meaning given by section
12A-25
in Schedule
1
to the
Taxation Administration Act 1953
.
AMIT dividend payment
has the meaning given by section
12A-30
in Schedule
1
to the
Taxation Administration Act 1953
.
AMIT interest payment
has the meaning given by section
12A-35
in Schedule
1
to the
Taxation Administration Act 1953
.
AMIT member annual statement
: see
AMMA statement
.
AMIT royalty payment
has the meaning given by section
12A-40
in Schedule
1
to the
Taxation Administration Act 1953
.
AMMA statement
(short for
AMIT member annual statement
) has the meaning given by section
276-460
.
amount arising
(Repealed by No 77 of 2001)
amount required to be withheld
by an entity from a *withholding payment means:
(a) the amount that the entity must withhold from the payment under Division 12 in Schedule 1 to the Taxation Administration Act 1953 ; or
(aaa) the amount that Division 12A in that Schedule requires the entity to pay to the Commissioner in respect of the payment; or
(aa) the amount that Division 13 in that Schedule requires the entity to pay to the Commissioner in respect of the *alienated personal services payment to which the withholding payment relates; or
(b) the amount that Division 14 in that Schedule requires the entity to pay to the Commissioner in respect of the *non-cash benefit, *capital proceeds or *taxable supply to which the withholding payment relates;
or that amount as varied by the Commissioner under section 15-15 in the Schedule.
amount withheld
by an entity from a *withholding payment means:
(a) an amount that the entity withheld from the payment under Division 12 in Schedule 1 to the Taxation Administration Act 1953 ; or
(aaa) an amount that the entity paid to the Commissioner under Division 12A in that Schedule in respect of the payment; or
(aa) an amount that the entity paid to the Commissioner under Division 13 in that Schedule in respect of the *alienated personal services payment to which the withholding payment relates; or
(b) an amount that the entity paid to the Commissioner under Division 14 in that Schedule in respect of the *non-cash benefit, *capital proceeds or *taxable supply to which the withholding payment relates.
ancillary activities
(Repealed by No 77 of 2001)
(a) a *public ancillary fund; or
(b) a *private ancillary fund.
ancillary mining activities
has the meaning given by section
40-740
.
ancillary or community charity trust fund
means:
(a) a *public ancillary fund; or
(b) a *private ancillary fund; or
(c) a *community charity trust.
annual exploration cap
for an income year has the meaning given by subsection
418-103(1)
.
annual global income
has the meaning given by section
960-565
.
annual instalment component
of your *tax position has the meaning given by section
45-610
in Schedule
1
to the
Taxation Administration Act 1953
.
annual investment income report
means a report, relating to *Part VA investments, that an entity is required to give to the Commissioner, in respect of a *financial year, under section
393-10
in Schedule
1
to the
Taxation Administration Act 1953
.
annual payer
means an entity that has become an annual payer under section
45-140
in Schedule
1
to the
Taxation Administration Act 1953
, and has not since ceased to be an annual payer under section
annual tax period election
has the same meaning as in the
*
GST Act.
annual turnover
has the meaning given by section
328-120
.
(a) an annuity, within the meaning of the Superannuation Industry (Supervision) Act 1993 ; or
(b) a pension, within the meaning of the Retirement Savings Accounts Act 1997 .
annuity instrument
means an instrument that secures the grant of an annuity (whether dependent on the life of an individual or not).
apartment building
has the meaning given by section
43-95
.
applicable functional currency
has the meaning given by section
960-70
.
applicable fund earnings
has the meaning given by section
305-75
.
applicable instalment rate
(Repealed by No 96 of 2014)
applicable insurance contracts accounting standard
means:
(a) unless paragraph (b) applies - *accounting standard AASB 17, as in force on 31 December 2022; or
(b) if the regulations prescribe another accounting standard (which may be AASB 17 as in force at another time) - that accounting standard.
applicable trust fund guidelines
means:
(a) in relation to a *public ancillary fund - the *public ancillary fund guidelines; or
(b) in relation to a *private ancillary fund - the *private ancillary fund guidelines; or
(c) in relation to a *community charity trust - the *community charity trust guidelines.
(a) amounts deducted or deductible under section 25-75 (which provides a deduction for rates and land tax); or
(b) amounts deducted or deductible under section 30-15 because of item 1, 2, 7 or 8 in the table in that section, except amounts deducted or deductible for gifts of * trading stock in cases where:
(i) the gifts are covered by section 70-90 (which has the effect that the giver ' s assessable income includes the market value of the gift); and
(ii) no election has been made, or is made, under Subdivision 385-E (which allows the giver to choose to spread the market value of a gift of live stock over the giver ' s assessable income for 5 income years or to reduce the amount included in the giver ' s assessable income by the cost of replacement live stock).
approved child care
(Repealed by No 49 of 2019)
approved child care fees
(Repealed by No 49 of 2019)
approved deposit fund
has the meaning given by section
10
of the
Superannuation Industry (Supervision) Act 1993
.
approved deposit fund payment
has the meaning given by section
307-5
.
approved form
has the meaning given by section
388-50
in Schedule
1
to the
Taxation Administration Act 1953
.
approved investment plan,
of an
*
ESVCLP, has the meaning given by subsection
13-15(2)
of the
Venture Capital Act 2002
.
approved management plan
for land has the meaning given by section
40-640
.
approved occupational clothing guidelines
has the meaning given by subsection
34-55(1)
.
approved stock exchange
means a stock exchange named in regulations made for the purposes of this definition.
APRA
means the Australian Prudential Regulation Authority.
area covered by an international tax sharing treaty
: if, under an *international tax sharing treaty, Australia and another country share tax revenues from activities undertaken in an area identified by or under the treaty, that area is an
area covered by an international tax sharing treaty
.
arm
'
s length
:
in determining whether parties deal at
arm
'
s length
, consider any connection between them and any other relevant circumstance.
arm
'
s length capital amount
:
(a)
for an
*
outward investing entity (ADI)
-
has the meaning given by section
820-315
; and
(b) for an * inward investing entity (ADI) - has the meaning given by section 820-410 .
arm
'
s length conditions
has the meaning given by section
815-125
.
arm
'
s length consideration
(Repealed by No 96 of 2014)
arm
'
s length debt amount
(Repealed by No 23 of 2024)
arm
'
s length profits
has the meaning given by section
815-225
.
arrangement
means any arrangement, agreement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable (or intended to be enforceable) by legal proceedings.
arrangement payment
has the meaning given by section
240-65
.
arrangement payment period
has the meaning given by section
240-70
.
arrangement period
for a
*
tax preferred use of an asset has the meaning given by section
250-65
.
ART
means the Administrative Review Tribunal.
artistic support
has the meaning given by subsection
405-25(5)
.
Arts Department
(Repealed by No 110 of 2014)
Arts Minister
means the Minister administering the
National Gallery Act 1975
.
Arts Secretary
means the Secretary of the Department administered by the *Arts Minister.
(a) a painting, sculpture, drawing, engraving or photograph; or
(b) a reproduction of such a thing; or
(c) property of a similar description or use.
ASIC
means the Australian Securities and Investments Commission.
assessable amount
has the meaning given by subsection
155-5(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
assessable FHSS released amount
, for an income year, means the amount included in a person
'
s assessable income for the income year under section
313-20
in respect of the person
'
s *FHSS released amounts.
assessable film income
for an income year is so much of the amount, or the sum of the amounts, to which section
26AG
of the
Income Tax Assessment Act 1936
applies in relation to you for the income year as is assessable income.
assessable income
has the meaning given by sections
6-5
,
6-10
,
6-15
,
17-10
and
17-30
.
For the effect of GST-related amounts on assessable income, see Division 17 .
Note:
For income years before 1997-98, assessable income has the meaning given by section 6-3 of the Income Tax (Transitional Provisions) Act 1997 .
assessable non-primary production income
has the meaning given by subsection
392-85(2)
.
assessable primary production income
has the meaning given by subsection
392-80(2)
.
assessable professional income
has the meaning given by subsection
405-20(1)
.
assessable recoupment
has the meaning given by section
20-20
.
assessed Division 293 tax
means
*
Division 293 tax, as assessed under Schedule
1
to the
Taxation Administration Act 1953
.
assessed excess transfer balance tax
means *excess transfer balance tax, as assessed under Schedule
1
to the
Taxation Administration Act 1953
.
assessed first home super saver tax
means *first home super saver tax, as assessed under Schedule
1
to the
Taxation Administration Act 1953
.
assessed GST
has the meaning given by the *GST Act.
assessed net amount
has the meaning given by the *GST Act.
assessed net fuel amount
has the meaning given by the
Fuel Tax Act 2006
.
(a) of an *assessable amount, means an ascertainment of the assessable amount; and
(b) in relation to a *tax-related liability not covered by paragraph (a), has the meaning given by a *taxation law that provides for the assessment of the amount of the liability.
Note:
The table lists provisions of taxation laws that define assessment .
| Taxation laws that define assessment | ||
| Item | Taxation law | Provision |
| 1 | Income Tax Assessment Act 1936 | subsection 6(1) |
| 5 | Fringe Benefits Tax Assessment Act 1986 | subsection 136(1) |
| 10 | Petroleum Resource Rent Tax Assessment Act 1987 | section 2 |
| 15 | Superannuation Guarantee (Administration) Act 1992 | section 6 |
| 20 | Superannuation Contributions Tax (Assessment and Collection) Act 1997 | section 43 |
| 25 | Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 | section 38 |
| 30 | (Repealed by No 23 of 2018) |
assessment day
for an income year of a
*
life insurance company has the meaning given by section
219-45
.
asset
, of a *sub-fund of a *CCIV, means any of the assets of the sub-fund, ascertained in accordance with Subdivision
B
of Division
3
of Part
8B.5
of the
Corporations Act 2001
.
asset for insurance acquisition cash flows
has the same meaning as in the *applicable insurance contracts accounting standard.
asset-based income tax regime
has the meaning given by section
830-105
.
asset entity
has the meaning given by section
12-436
in Schedule
1
to the
Taxation Administration Act 1953
.
asset forming part of goodwill
(Repealed by No 99 of 2012)
asset included in the total assets
of a company that is a foreign resident has the meaning given by section
768-545
.
associate
has the meaning given by section
318
of the
Income Tax Assessment Act 1936
.
Note:
Under section 87-35 , Australian government agencies, and certain parts of Australian governments and authorities, are not treated as associates for the purposes of ascertaining whether an entity is conducting a personal services business.
associated enterprises article
has the meaning given by subsection
815-15(5)
.
associated government entity
means:
(a) for the Commonwealth - each authority of the Commonwealth; or
(b) for an authority of the Commonwealth - each other authority of the Commonwealth; or
(c) for a State - each authority of the State; or
(d) for an authority of a State - each other authority of the State; or
(e) for a Territory - each authority of the Territory; or
(f) for an authority of a Territory - each other authority of the Territory.
associate entity
has the meaning given by section
820-905
.
associate entity debt
has the meaning given by section
820-910
.
associate entity equity
has the meaning given by section
820-915
.
associate entity excess amount
has the meaning given by section
820-920
.
associate-inclusive control interest
in a company has the meaning given by section
975-160
.
associate-inclusive control interest
(Repealed by No 90 of 2002)
associate interest
has the meaning given by section
820-905
.
associate pair
: an entity is an associate pair of another entity if any of the following conditions are satisfied:
(a) the entity is an associate of the other entity;
(b) the other entity is an associate of the entity.
at risk
has the meaning given by section
118-430
.
attributable income
has the meaning given by
Division 7 of Part X
of the
Income Tax Assessment Act 1936
.
attributable taxpayer
has the meaning given by Part
X
of the
Income Tax Assessment Act 1936
.
attribution managed investment trust
: see
AMIT
.
attribution percentage
, in relation to a *CFC or a *CFT, has the meaning given by Part
X
of the
Income Tax Assessment Act 1936
.
audited consolidated financial statements
for an entity for a period has the meaning given by section
820-935
.
auditing principles
: a matter is in accordance with
auditing principles
if it is in accordance with:
(a) *auditing standards; or
(b) if there are no auditing standards applicable to the matter - authoritative pronouncements of the Auditing and Assurance Standards Board that apply to the preparation of financial statements.
auditing standard
has the same meaning as in the
Corporations Act 2001
.
Australia
has the meaning affected by section
960-505
.
Australian agricultural land for rent
has the meaning given by section
12-448
in Schedule
1
to the
Taxation Administration Act 1953
.
Australian Business Register
means the Australian Business Register established and maintained under the
A New Tax System (Australian Business Number) Act 1999
.
[ CCH Note: Definition of " Australian Business Register " will be repealed by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 1382, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 30-5(4AA) .]
Australian Business Registrar
means the Registrar of the *Australian Business Register.
[ CCH Note: Definition of " Australian Business Registrar " will be repealed by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 1383, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 30-5(4AA) .]
Australian carbon credit unit
has the same meaning as in the
Carbon Credits (Carbon Farming Initiative) Act 2011
.
Australian controlled foreign entity
has the meaning given by section
820-745
.
Australian controller
:
(a)
of a
*
controlled foreign company mentioned in paragraph
820-745(a)
-
has the meaning given by section
820-750
; and
(b) of a * controlled foreign trust - has the meaning given by section 820-755 ; and
(c) of a * controlled foreign corporate limited partnership - has the meaning given by section 820-760 .
Australian corporate tax entity
:
an entity is an
Australian corporate tax entity
at a particular time if the entity is:
(a) a *corporate tax entity at that time; and
(b) for a company or a *corporate limited partnership - an Australian resident at that time; and
(c) for a *public trading trust - a *resident unit trust for the income year in which that time occurs.
Australian entity
has the same meaning as in Part
X
of the
Income Tax Assessment Act 1936
Australian financial market
means a financial market (within the meaning of Chapter
7
of the
Corporations Act 2001
) operating under an Australian market licence granted under subsection
795B(1)
of that Act.
Australian financial services licence
has the same meaning as in the
Corporations Act 2001
.
Australian fund
has the meaning given by section
74
of the
Life Insurance Act 1995
.
Australian government agency
means:
(a) the Commonwealth, a State or a Territory; or
(b) an authority of the Commonwealth or of a State or a Territory.
Australian law
means a
*
Commonwealth law, a
*
State law or a
*
Territory law.
(a) the Parliament of the Commonwealth of Australia; or
(b) the Parliament of a State; or
(c) the Legislative Assembly for the Australian Capital Territory; or
(d) the Legislative Assembly of the Northern Territory of Australia.
Australian/overseas fund
has the meaning given by section
74
of the
Life Insurance Act 1995
.
Australian permanent establishment
, of an entity, means a
*
permanent establishment of the entity that is in Australia.
Australian resident
means a person who is a resident of Australia for the purposes of the
Income Tax Assessment Act 1936
.
Australian source
:
without limiting when *ordinary income or *statutory income has an
Australian source
, it has an
Australian source
if it is
*
derived
from a source in Australia for the purposes of the
Income Tax Assessment Act 1936
.
Australian-sourced amount
has the meaning given by the regulations mentioned in section
312-5
(about trans-Tasman portability of retirement savings).
Australian superannuation fund
has the meaning given by section
295-95
.
Australian trust
has the same meaning as in Part
X
of the
Income Tax Assessment Act 1936
Australian venture capital fund of funds
has the meaning given by subsection
118-410(3)
.
authorised ASIO officer
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
authorised law enforcement agency officer
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
available assessable income
(Repealed by No 77 of 2001)
available expense
has the meaning given by section
175-30
.
available fraction
for a
*
bundle of losses has the meaning given by sections
707-320
,
719-310
and
719-315
.
available frankable profits
has the meaning given by section
215-20
and affected by subsection
215-25(1)
.
available income
has the meaning given by section
175-30
.
available loss exposure amount
has the meaning given by paragraph
830-50(1)(a)
.
average equity capital
has the meaning given by sections
820-395
,
820-420
and
820-615
.
average income
has the meaning given in subsection
392-45(1)
.
average taxable professional income
has the meaning given by subsections
405-50(1)
and
(2)
.
average turnover
(Repealed by
No 80 of 2007
)
averaging adjustment
has the meaning given in section
392-75
.
averaging component
has the meaning given in subsection
392-90(1)
.
award transport payment
has the meaning given by section
900-220
.
balancing adjustment event
has the meaning given by section
40-295
.
Note:
Subsection 417-30(1) provides that certain events (connected with Timor Sea petroleum) are taken not to be balancing adjustment events.
BAS amount
means any debt or credit that arises directly under the *BAS provisions.
Note:
BAS stands for Business Activity Statement.
BAS amounts
(Repealed by No 12 of 2012)
base assessment
has the meaning given by sections
45-320
and
45-470
in Schedule
1
to the
Taxation Administration Act 1953
.
base interest rate
has the meaning given by section
8AAD
of the
Taxation Administration Act 1953
.
base penalty amount
: the base penalty amount for calculating the amount of an administrative penalty is worked out under the relevant provision in this table:
| Base penalty amount | ||
| Item | For a penalty for this: | See: |
| 1 | False or misleading statement | Section 284-90 in Schedule 1 to the Taxation Administration Act 1953 |
| Position not reasonably arguable | ||
| 2 | * Schemes | Section 284-160 in that Schedule |
| 3 | Failure to lodge returns etc. | Section 286-80 in that Schedule |
base value
, of a *depreciating asset, has the meaning given by subsection
40-70(1)
.
base year
, in relation to an income year, has the meaning given by sections
45-320
and
45-470
in Schedule
1
to the
Taxation Administration Act 1953
.
base year
†
, for your entitlement to a
*
tax offset under Subdivision
61-I
, has the meaning given by section
61-430
.
basic assessable income
has the meaning given by subsection
392-45(2)
.
basic concessional contributions cap
means the concessional contributions cap under subsection
291-20(2)
, disregarding any increase under subsection
291-20(3)
.
basic rates
has the meaning given by subsection
392-35(4)
.
basic taxable income
has the meaning given by section
392-15
.
(a) Part VII of the Fringe Benefits Tax Assessment Act 1986 ; and
(b) the *indirect tax law; and
(c) Parts 2-5 and 2-10 in Schedule 1 to the Taxation Administration Act 1953 (which are about the PAYG system); and
(d) Division 389 in Schedule 1 to the Taxation Administration Act 1953 ; and
(e) the Major Bank Levy Act 2017 .
Note:
BAS stands for Business Activity Statement.
behaviour that is harmful or abusive
means one or more of the following:
(a) emotional abuse;
(b) sexual abuse;
(c) physical abuse;
(d) suicide;
(e) self-harm;
(f) substance abuse;
(g) harmful gambling.
benchmark franking percentage
has the meaning given by section
203-30
.
benchmark instalment rate
has the meaning given by sections
45-360
and
45-530
in Schedule
1
to the
Taxation Administration Act 1953
.
benchmark rate of return
for an interest has the meaning given by section
974-145
.
benchmark rule
is the rule in section
203-25
.
benchmark tax
has the meaning given by sections
45-365
and
45-535
in Schedule
1
to the
Taxation Administration Act 1953
.
beneficiary
, of a *CCIV sub-fund trust, means a *member of the *sub-fund who is taken because of subsection
195-110(1)
to be a beneficiary of the trust.
bereavement Subdivision
has the meaning given by section
52-20
.
bid period
has the meaning given by section
9
of the
Corporations Act 2001
.
borrowed securities amount
of an entity at a particular time means the total of the liabilities of the entity, to the extent that they meet these conditions:
(a) the value of the liability at that time is worked out by reference to the value at that time of securities that the entity has short sold;
(b) as at that time, the entity has settled the sale using securities it acquired under one or more of these * arrangements:
(i) a reciprocal purchase agreement (otherwise known as a repurchase agreement);
(ii) a sell-buyback arrangement;
(iii) a securities loan arrangement.
borrowing
means any form of borrowing, whether secured or unsecured, and includes the raising of funds by the issue of a bond, debenture, discounted security or other document evidencing indebtedness.
branch hybrid
has the meaning given by section
832-485
.
branch hybrid mismatch
has the meaning given by section
832-470
.
bribe to a foreign public official
has the meaning given by section
26-52
.
bribe to a public official
has the meaning given by section
26-53
.
bundle
of losses has the meaning given by section
707-315
.
business
includes any profession, trade, employment, vocation or calling, but does not include occupation as an employee.
business continuity test
has the meaning given by Subdivision
165-E
.
business continuity test period
has the meaning given by sections
165-13
,
165-15
,
165-35
,
165-40
,
165-45
,
165-126
,
165-129
,
165-132
,
166-5
,
166-20
,
166-40
,
707-125
,
707-135
,
715-50
,
715-55
,
715-60
,
715-70
,
715-95
,
715-355
and
715-360
, and affected by sections
415-35
,
415-40
and
707-400
.
business day
means a day other than:
(a) a Saturday or a Sunday; or
(b) a day which is a public holiday for the whole of:
(i) any State; or
(ii) the Australian Capital Territory; or
(iii) the Northern Territory.
business exemption threshold
(Repealed by No 165 of 1999)
business kilometres
has the meaning given by sections
28-25
and
28-90
.
business meeting
has the meaning given by subsections
32-65(3)
and
(4)
.
business profits article
has the meaning given by subsection
815-15(6)
.
business travel expense
has the meaning given by section
900-95
.
business use percentage
has the meaning given by section
28-90
.
capital allowance
means a deduction under:
(a) Division 40 (capital allowances) of this Act; or
(ab) Division 43 (capital works) of this Act; or
(ac) Subdivision 328-D (capital allowances for small business entities) of this Act; or
(b) - (c) (Repealed by No 101 of 2006)
(d) former Division 10BA of Part III of that Act (Australian films); or
(e) former Division 10B of Part III of that Act (copyright in Australian films).
(f) (Repealed by No 93 of 2011)
capital gain
:
for each
*
CGT event a
capital gain
is worked out in the way described in that event.
Note 1:
There are some CGT events for which there is no capital gain.
Note 2:
For income years before 1998-99, capital gain has the meaning given by section 102-20 of the Income Tax (Transitional Provisions) Act 1997 .
capital loss
:
for each
*
CGT event a
capital loss
is worked out in the way described in that event.
Note 1:
There are some CGT events for which there is no capital loss.
Note 2:
For income years before 1998-99, capital loss has the meaning given by section 102-20 of the Income Tax (Transitional Provisions) Act 1997 .
capital proceeds
has the meaning given by Division
116
.
capital protected borrowing
has the meaning given by section
247-10
.
capital protection
has the meaning given by section
247-10
.
capital shareholding of less than 1%
(Repealed by No 147 of 2005)
capital stake
has the meaning given by section
166-235
.
capital unitholding of less than 1%
(Repealed by No 94 of 1999)
capped defined benefit income stream
has the meaning given by section
294-130
.
capped life
of a *depreciating asset has the meaning given by section
40-102
.
car
means a *motor vehicle (except a motor cycle or similar vehicle) designed to carry a load of less than 1 tonne and fewer than 9 passengers.
carbon sequestration
has the meaning given by section
40-1015
.
carbon service provider
means an entity that carries on the *business of providing services wholly or mainly relating to offsets projects (within the meaning of the
Carbon Credits (Carbon Farming Initiative) Act 2011
), including services involving the entity carrying out such projects as the project proponent (within the meaning of that Act).
carbon unit
(Repealed by No 83 of 2014)
car depreciation limit
(Repealed by No 77 of 2001)
car expense
has the meaning given by section
28-13
.
car fringe benefit
has the meaning given by subsection
136(1)
of the
Fringe Benefits Tax Assessment Act 1986
.
car-less day
(Repealed by No 162 of 2015)
car limit
has the meaning given by section
40-230
.
carried interest
:
(a)
of a *general partner in a *VCLP, an *ESVCLP or an *AFOF
-
has the meaning given by subsections
104-255(4)
and (6); and
(b) of a *limited partner in a *VCMP - has the meaning given by subsections 104-255(5) and (6) .
carried on in Australia
(Repealed by No 66 of 2003)
carry back
: you
carry back
to an income year so much of a *tax loss for a later income year as you specify, in a *loss carry back choice, to be carried back to the earlier income year.
Note:
You can make a loss carry back choice only for the 2020-21, 2021-22 or 2022-23 income year.
carry-forward trust component deficit
, of a particular character, has the meaning given by section
276-330
.
carrying on
an
*
enterprise includes doing anything in the course of the commencement or termination of the enterprise.
cash bidding exploration or prospecting authority
(Repealed by No 77 of 2001)
cash management trust
means a trust that satisfies these requirements:
(a) the trust is of a kind commonly known as a cash management trust;
(b) each unit in the trust carries the same rights as every other unit in the trust.
cash settlable
has the meaning given by subsection
230-45(2)
.
CBC reporting entity
: see
country by country reporting entity
.
: see
country by country reporting group
.
CBC reporting parent
: see
country by country reporting parent
.
CCIV
: see
corporate collective investment vehicle
.
CCIV sub-fund trust
has the meaning given by subsection
195-110(2)
.
cessation event
, in relation to a
*
provisional head company of a
*
MEC group, has the meaning given by subsection
719-60(6)
.
cessation time
(Repealed by No 133 of 2009)
CFC
has the meaning given by Part
X
of the
Income Tax Assessment Act 1936
.
CFT
has the meaning given by section
342
of the
Income Tax Assessment Act 1936
.
CGT asset
has the meaning given by section
108-5
.
CGT cap amount
has the meaning given by section
292-105
.
CGT concession stakeholder
has the meaning given by subsection
152-60
.
CGT event
means any of the CGT events described in Division
104
. A CGT event described by number (for example:
CGT event A1
) refers to the relevant event in that Division.
CGT exempt amount
has the meaning given by section
152-315
.
CGT retirement exemption limit
has the meaning given by section
152-320
.
CGT small business entity
has the meaning given by subsection
152-10(1AA)
.
chain of trusts
has the meaning given by section
104-71
.
changeover time
for a company has the meaning given by sections
165-115C
,
165-115D
and
719-705
.
child
: without limiting who is a child of an individual, each of the following is the
child
of an individual:
(a) the individual ' s *adopted child, stepchild or exnuptial child;
(b) a child of the individual ' s *spouse;
(c) someone who is a child of the individual within the meaning of the Family Law Act 1975 .
child care base week
(Repealed by No 49 of 2019)
child care offset limit
(Repealed by No 49 of 2019)
child event
(Repealed by No 49 of 2019)
child recipient
of a *superannuation income stream has the meaning given by section
294-175
.
class
of a taxable income or a
*
tax loss of a
*
life insurance company has the meaning given by section
320-133
.
class
:
*
membership interests in a company or trust form a
class
if the interests have the same, or substantially the same, rights.
clean building
has the meaning given by section
12-430
in Schedule
1
to the
Taxation Administration Act 1953
.
clean building managed investment trust
has the meaning given by section
12-425
in Schedule
1
to the
Taxation Administration Act 1953
.
Climate Change Department
(Repealed by No 110 of 2014)
Climate Change Minister
means the Minister administering the
National Greenhouse and Energy Reporting Act 2007
.
Climate Change Secretary
means the Secretary of the Department administered by the *Climate Change Minister.
closing pool balance
has the meaning given by:
(a) for a low-value pool - section 40-440 ; or
(b) for a * general small business pool - section 328-200 .
closing pool value
has the meaning given by section
40-830
.
club
(Repealed by No 121 of 1997)
collectable
has the meaning given by section
108-10
.
commencing day
of a
*
CFC has the meaning given by section
406
of the
Income Tax Assessment Act 1936
.
commencing day asset
of a
*
CFC has the meaning given by section
406
of the
Income Tax Assessment Act 1936
.
commercial horticulture
has the meaning given by section
40-535
.
commercial residential premises
has the same meaning as in the *GST Act.
Commissioner
means the Commissioner of Taxation.
Note:
The office of Commissioner of Taxation is created by section 4 of the Taxation Administration Act 1953 .
Commissioner assessment
(Repealed by No 161 of 2005)
Commissioner
'
s instalment rate
has the meaning given by section
45-115
in Schedule
1
to the
Taxation Administration Act 1953
.
committed capital
of a partnership has the meaning given by section
118-445
.
common ownership
: see
under common ownership
.
common-ownership nexus
:
see section
727-400
.
common stake
has the meaning given by sections
124-783
and
124-783A
.
common stakeholder
has the meaning given by section
124-783
.
Commonwealth education or training payment
has the meaning given by subsection
52-145(1)
.
Commonwealth labour market program
has the meaning given by subsection
52-145(2)
.
Commonwealth law
means a law of the Commonwealth.
Commonwealth of Nations country
means:
(a) a foreign country that is a member of the Commonwealth of Nations; or
(b) a colony, overseas territory or protectorate of such a member; or
(c) a territory for whose international relations such a member is responsible;
other than one declared by the regulations not to be a Commonwealth of Nations country.
Commonwealth public sector superannuation scheme
has the same meaning as in the
Superannuation (Unclaimed Money and Lost Members) Act 1999
.
community charity corporation
has the meaning given by section
426-180
in Schedule
1
to the
Taxation Administration Act 1953
.
community charity corporation guidelines
has the meaning given by section
426-185
in Schedule
1
to the
Taxation Administration Act 1953
.
community charity trust
has the meaning given by section
426-117
in Schedule
1
to the
Taxation Administration Act 1953
.
community charity trust guidelines
has the meaning given by section
426-118
in Schedule
1
to the
Taxation Administration Act 1953
.
community shed
means a public institution that satisfies all of the following requirements:
(a) the institution ' s dominant purposes are advancing mental health and preventing or relieving social isolation;
(b) the institution seeks to achieve those purposes principally by providing a physical location where it supports individuals to undertake activities, or work on projects, in the company of others;
(c) either:
(i) there are no particular criteria for membership of the institution; or
(ii) the criteria for membership of the institution relate only to an individual ' s gender or Indigenous status (in that membership is, for cultural reasons, open only to *Indigenous persons) or both.
(a) a body corporate; or
(b) any other unincorporated association or body of persons;
but does not include a partnership or a * non-entity joint venture.
Note 1:
Division 830 treats foreign hybrid companies as partnerships.
Note 2:
A reference to a company includes a reference to a corporate limited partnership: see section 94J of the Income Tax Assessment Act 1936 .
company law
(Repealed by No 41 of 2005)
company
'
s share
:
(a)
of a partnership
'
s
*
notional loss or
*
notional net income
-
has the meaning given by sections
165-80
and
165-85
; and
(b) of a partnership ' s * full year deductions - has the meaning given by sections 165-90 .
comparison rate
has the meaning given by section
392-55
.
compensable work-related trauma
has the meaning given by subsection
136(1)
of the
Fringe Benefits Tax Assessment Act 1986
.
(a) in relation to a *film, has the meaning given by subsection 376-55(2) ; and
(b) in relation to a *digital game, has the meaning given by subsection 378-25(2) .
complying approved deposit fund
means a complying approved deposit fund within the meaning of section
47
of the
Superannuation Industry (Supervision) Act 1993
.
complying health insurance policy
has the meaning given by the
Private Health Insurance Act 2007
.
complying superannuation asset
has the meaning given by subsection
320-170(6)
.
complying superannuation asset pool
has the meaning given by subsection
320-170(6)
.
complying superannuation class
:
(a) for a taxable income of a *life insurance company - has the meaning given by section 320-137 ; or
(b) for a *tax loss of a *life insurance company - has the meaning given by section 320-141 .
complying superannuation class
(Repealed by No 45 of 2008)
complying superannuation class
(Repealed by No 45 of 2008)
complying superannuation entity
means:
(a) a * complying superannuation fund; or
(b) a * complying approved deposit fund; or
(c) a * pooled superannuation trust.
complying superannuation/FHSA asset
(Repealed by No 70 of 2015)
complying superannuation/FHSA asset pool
(Repealed by No 70 of 2015)
complying superannuation/FHSA class
(Repealed by No 70 of 2015)
complying superannuation/FHSA liabilities
(Repealed by No 70 of 2015)
complying superannuation/FHSA life insurance policy
(Repealed by No 70 of 2015)
complying superannuation fund
means a complying superannuation fund within the meaning of section
45
of the
Superannuation Industry (Supervision) Act 1993
.
complying superannuation liabilities
of a *life insurance company means liabilities of the company under *life insurance policies referred to in subsection
320-190(1)
.
complying superannuation life insurance policy
means a *life insurance policy that:
(a) is held by the trustee of a *complying superannuation entity; or
(b) is held by an individual and:
(i) provides for an *annuity that is not presently payable, if the annuity was purchased out of a *superannuation lump sum or an *employment termination payment; or
(ia) provides for an *immediate annuity, if the annuity is a *superannuation income stream that is not in the *retirement phase; or
(ii) is so held in the benefit fund of a *friendly society, being a fund that is a *regulated superannuation fund; or
(c) is held by another *life insurance company and is a *complying superannuation asset of that company;
and is not an *excluded complying superannuation life insurance policy.
complying superannuation plan
means:
(a) a *complying superannuation fund; or
(b) a *public sector superannuation scheme that is:
(i) a *regulated superannuation fund; or
(ii) an exempt public sector superannuation scheme (within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993 ); or
(c) a *complying approved deposit fund; or
(d) an *RSA.
component
of your
*
tax position has the meaning given by section
45-610
in Schedule
1
to the
Taxation Administration Act 1953
.
concentration
(Repealed by No 77 of 2001)
concessional contributions
has the meaning given by sections
291-25
and
291-165
.
concessional contributions cap
has the meaning given by section
291-20.
concessional cross staple rent cap
has the meaning given by sections
12-443
and
12-444
in Schedule
1
to the
Taxation Administration Act 1953
.
conduit foreign income
has themeaning given by Subdivision
802-A
.
connected entity
of an entity means:
(a) an * associate of the entity; or
(b) another member of the same * wholly owned group if the entity is a company and is a member of such a group.
connected with
:
an entity is
connected with
you in the circumstances described in section
328-125
.
Note:
This meaning is affected by section 152-78 .
connecting power to land or upgrading the connection
has the meaning given by section
40-655
.
conservation covenant
has the meaning given by section
31-5
.
consideration
, for a *taxable supply, has the same meaning as in the *GST Act.
consideration receivable
:
(a)
consideration receivable
on the disposal of a leased
*
car has the meaning given by section
20-115
; and
(b) consideration receivable for * trading stock changing hands has the meaning given by subsection 70-100(11) .
consolidatable group
has the meaning given by section
703-10
.
consolidated group
has the meaning given by section
703-5
.
Note 1:
Part 3-90 contains rules relating to the tax treatment of consolidated groups. Division 719 (of that Part) applies those rules to MEC groups with modifications (see section 719-2 ).
Note 2:
Provisions in the Income Tax Assessment Act 1936 and in the Income Tax Assessment Act 1997 (other than in Part 3-90 ) referring only to consolidated groups do not apply to MEC groups.
consolidation transitional year
for a
*
member of a
*
consolidated group or a member of a
*
MEC group, is an income year for that member that satisfies both of the following conditions:
(a) the group is in existence during all or any part of that year;
(b) Subdivision 45-Q in Schedule 1 to the Taxation Administration Act 1953 (including that Subdivision as applied under Subdivision 45-S in that Schedule):
(i) does not apply at all to the * head company or the * provisional head company of the group during that year; or
(ii) starts to apply at any time during that year to the head company or the provisional head company of the group because of subsection 45-705(2) or subparagraph 45-705(3)(c)(ii) , (4)(d)(ii) or (iv), or subsection 45-915(2) or subparagraph 45-915(3)(c)(ii) , (4)(b)(ii) or (iv), in that Schedule.
constitution
of a company means the memorandum and articles of association of the company, or any other rules or document constituting the company or governing its activities.
constitutional corporation
means:
(a) a corporation to which paragraph 51(xx) of the Constitution applies; or
(b) a body corporate that is incorporated in a Territory.
constitutionally protected fund
means a fund that is declared by the regulations to be a constitutionally protected fund.
construction expenditure
has the meaning given by section
43-70
.
construction expenditure area
has the meaning given by section
43-75
.
contingent on aspects of the economic performance
has the meaning given by section
974-85
.
contingent on the economic performance
(Repealed by No 10 of 2016)
continuing shareholders
has the meaning given by sections
175-10
,
175-20
,
175-25
,
175-45
,
175-60
,
175-65
and
175-85
.
continuous disability policy
has the meaning given by section
9A
of the
Life Insurance Act 1995
.
contract of reinsurance
,
in respect of *life insurance policies, does not include a contract of reinsurance in respect of:
(a) the parts of *complying superannuation life insurance policies in respect of which the liabilities of the company that issued the policies are to be discharged out of a *complying superannuation asset pool; or
(b) policies that are *exempt life insurance policies.
contributions segment
has the meaning given by section
307-220
.
contributions-splitting superannuation benefit
has the meaning given by the regulations.
control a non-fixed trust
has the meaning given by Subdivision
269-E
in Schedule
2F
to the
Income Tax Assessment Act 1936
.
control (for value shifting purposes)
has the meaning given by sections
727-355
,
727-360
,
727-365
and
727-375
.
controlled foreign company
has the same meaning as in Part
X
of the
Income Tax Assessment Act 1936
.
controlled foreign corporate limited partnership
has the meaning given by section
820-760
.
controlled foreign entity debt
has the meaning given by section
820-885
.
controlled foreign entity equity
has the meaning given by section
820-890
.
controlled foreign trust
has the same meaning as in Part
X
of the
Income Tax Assessment Act 1936
.
controller (for CGT purposes)
: an entity is a
controller (for CGT purposes)
of a company in the circumstances mentioned in section
975-155
.
controller (for imputation purposes)
has the meaning given by subsections
207-130(5)
and
(6)
.
controlling individual
(Repealed by
No 55 of 2007
)
convertible interest
means a convertible interest in a company or in a trust or unit trust and:
(a) a convertible interest in a company is an interest of the kind referred to in item 4 of the table in subsection 974-75(1) ; and
(b) a convertible interest in a trust or unit trust is an interest that has the same or a similar effect in relation to the trust or unit trust.
convertible note
:
(a)
a
convertible note
of a company has the meaning given by section
82L
of the
Income Tax Assessment Act 1936
; and
(b) a convertible note of a trust or unit trust means a note that has the same or a similar effect in relation to the trust or unit trust.
co-operative company
has the same meaning as in
Division 9 of Part III
of the
Income Tax Assessment Act 1936
.
copyright collecting society
means either of the following bodies:
(a) a body that satisfies all of the following conditions:
(i) a declaration under the Copyright Act 1968 is in force in respect of the body;
(ii) the body is a company whose * constitution contains provisions about the distribution of amounts collected or * derived by it, including a requirement that a * member of the society cannot direct the body to pay an amount at a particular time;
(iii) other conditions prescribed by the regulations (if any) for the purposes of this subparagraph are met;
(b) a company that satisfies all of the following conditions:
(i) the company is incorporated under an *Australian law relating to companies;
(ii) the company has and maintains the purpose of collective administration of copyrights;
(iii) if the company has other purposes - these purposes are incidental to the purpose described in subparagraph (ii) or, if the company is the * resale royalty collecting society, relate to the company ' s functions or duties as resale royalty collecting society;
(iv) the company collects or derives, and distributes, income of a kind mentioned in paragraph 51-43(2)(a) or (b) ;
(v) the company ' s constitution allows any copyright owner, or his or her * agent, to be a member of the society, or allows all copyright owners of a particular type to be members;
(vi) the company ' s constitution prohibits the payment of * dividends;
(vii) the company ' s constitution contains provisions about the payment, out of amounts collected or derived by it, of the administrative costs of collecting those amounts;
(viii) the company 's constitution contains provisions about the distribution of amounts collected or derived by it, including a requirement that an amount must be paid to a member as soon as is reasonably possible after the allocation of the amount to the member, as well as a requirement that a member cannot direct the company to pay an amount at a particular time;
(ix) the company ' s constitution, or contracts with members, contains such other provisions as are prescribed by the regulations (if any), being provisions necessary to ensure that the interests of members or their agents are protected adequately;
(x) the company ' s constitution requires the company to hold amounts on trust for copyright owners who are not members, or for members pending the payment of amounts to them;
(xi) the company ' s constitution, or contracts with members, allows all members to access the company ' s records;
(xii) other conditions prescribed by the regulations (if any) for the purposes of this subparagraph are met.
copyright income
(Repealed by No 126 of 2009)
core R
&
D activities
has the meaning given by section
355-25
.
core shipping activities
has the meaning given by section
51-110
.
corporate change
has the meaning given by section
166-175
.
corporate collective investment vehicle
or
CCIV
has the same meaning as in the
Corporations Act 2001
.
[ CCH Note: Definition of " corporate director " will be inserted by No 8 of 2022, s 3 and Sch 5 item 18, effective 1 January 2025 or a single day to be fixed by Proclamation. For application provision, see note under s 195-140(2) . The definition will read:
]corporate director
of a *CCIV has the same meaning as in the Corporations Act 2001 .
corporate limited partnership
has the meaning given by section
94D
of the
Income Tax Assessment Act 1936
.
corporate tax entity
has the meaning given by section
960-115
.
corporate tax gross-up rate
, of an entity for an income year, means the amount worked out using the following formula:
| 100% − *Corporate tax rate for imputation purposes of the entity for the income year | ||
| *Corporate tax rate for imputation purposes of the entity for the income year |
(a) in relation to a company to which paragraph 23(2)(a) of the Income Tax Rates Act 1986 applies - means the rate of tax in respect of the taxable income of a company covered by that paragraph; or
(b) in relation to another entity - means the rate of tax in respect of the taxable income of a company covered by paragraph 23(2)(b) of that Act.
corporate tax rate for imputation purposes
, of an entity for an income year, means:
(a) unless paragraph (b) applies - the entity ' s *corporate tax rate for the income year, worked out on the assumptions that:
(i) the entity ' s *aggregated turnover for the income year is equal to its aggregated turnover for the previous income year; and
(ii) the entity ' s base rate entity passive income (within the meaning of the Income Tax Rates Act 1986 ) for the income year is equal to its base rate entity passive income for the previous income year; and
(iii) the entity ' s assessable income for the income year is equal to its assessable income for the previous income year; or
(b) if the entity did not exist in the previous income year - the rate of tax in respect of the taxable income of a company covered by paragraph 23(2)(a) of the Income Tax Rates Act 1986 .
corporate unit trust
(Repealed by No 53 of 2016)
cost
:
(a)
cost
of a
*
depreciating asset has the meaning given by Subdivision
40-C
; and
(b) cost of an item of * trading stock, in the case of an animal that you acquired by natural increase, has the meaning given by section 70-55 ; and
Note:
The cost of an animal acquired by natural increase before the 1997-98 income year is the cost price of the animal under former section 34 of the Income Tax Assessment Act 1936 . See subsection 70-55(2) of the Income Tax (Transitional Provisions) Act 1997 .
(c) cost of a *registered emissions unit has the meaning given by section 420-60 .
cost base
of a
*
CGT asset has the meaning given by Subdivision
110-A
.
cost-free debt capital
has the meaning given by section
820-946
.
COT transfer
of a loss has the meaning given by section
707-210
.
country by country reporting entity
has the meaning given by section
815-370
.
country by country reporting group
has the meaning given by section
815-380
.
country by country reporting parent
has the meaning given by section
815-375
.
CRC program
means the program administered by the Commonwealth known as the Cooperative Research Centres Program.
created
:
(a)
a
*
consolidated group is
created
from a
*
MEC group if the consolidated group comes into existence under section
703-55
at the time the MEC group ceases to exist (as mentioned in that section); and
(b) a MEC group is created from a consolidated group if:
(i) the MEC group comes into existence under section 719-40 when a * special conversion event happens to a * potential MEC group derived from an * eligible tier-1 company of a * top company; and
(ii) the eligible tier-1 company was the * head company of the consolidated group (as mentioned in paragraph 719-40(1)(b) ).
creditable acquisition
has the meaning given by section
195-1
of the
*
GST Act.
creditable importation
has the meaning given by section
195-1
of the
*
GST Act.
creditable purpose
has the meaning given by section
195-1
of the
*
GST Act.
credit absorption tax
has the meaning given by section
770-15
.
credit reporting bureau
has the meaning given by subsection
355-72(7)
in Schedule
1
to the
Taxation Administration Act 1953
.
cross-character allocation amount
, of a particular character, has the meaning given by section
276-330
.
cross staple arrangement
has the meaning given by section
12-436
in Schedule
1
to the
Taxation Administration Act 1953
.
Crown lease
has the meaning given by section
124-580
.
CRS
(short for Common Reporting Standard) has the meaning given by subsection
396-110(1)
in Schedule
1
to the
Taxation Administration Act 1953
.
CRS Commentary
has the meaning given by subsection
396-110(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
crystallised pre-July 83 amount
, in relation to a *superannuation interest, means the amount mentioned in paragraph
307-225(2)(e)
in relation to the interest.
crystallised reduction amount
has the meaning given by section
136-10
in Schedule
1
to the
Taxation Administration Act 1953
.
crystallised segment
has the meaning given by section
307-225
.
CS/RA class
(Repealed by No 101 of 2004)
CS/RA component
(Repealed by No 101 of 2004)
cultural organisation
(Repealed by No 40 of 2023)
currency exchange rate effect
has the meaning given by section
775-105
.
current annual turnover
(Repealed by
No 80 of 2007
)
current GST turnover
has the meaning given by section
195-1
of the
*
GST Act.
current pension
means a pension that has begun to be paid.
current termination value
of a *life insurance policy, or of the *net risk component of a life insurance policy, has the meaning given in prudential standards made under section
230A
of the
Life Insurance Act 1995
.
current year
means the income year for which you are working out your assessable income, deductions and
*
tax offsets.
custodian
has the meaning given by section
12-390
in Schedule
1
to the
Taxation Administration Act 1953
.
customs dealing
has the meaning given by the *Wine Tax Act.
customs duty
has the meaninggiven by the *GST Act.
dad and partner pay
(Repealed by No 4 of 2023)
[ CCH Note: Definition of " data standards " will be inserted by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 1384, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 30-5(4AA) . The definition will read:
]data standards
means standards made by the Registrar under section 13 of the Commonwealth Registers Act 2020 to the extent that they relate to the Registrar ' s functions or powers in connection with the A New Tax System (Australian Business Number) Act 1999 .Note:
The data standards deal with how the Registrar ' s functions and powers are performed and exercised. For example, they may provide for:
(a) the collection of information; and (b) the manner and form in which information is given to the Registrar; and (c) the manner and form of communication between the Registrar and persons who give information to the Registrar or seek to access information held by the Registrar.
datacasting transmitter licence
(Repealed by No 151 of 2020)
date of the settlement or order
, for a *structured settlement or a *structured order, has the meaning given by section
54-5
.
death benefits dependant
has the meaning given by section
302-195
.
death benefit termination payment
has the meaning given by subsection
82-130(3)
.
debenture
of a company or unit trust includes debenture stock, bonds, notes and any other securities of the company or trust, whether or not constituting a charge on its assets.
debit value
, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream, has the meaning given by section
294-145
.
debt account discharge liability
has the meaning given by section
133-120
in Schedule
1
to the
Taxation Administration Act 1953
.
debt capital
, of an entity and at a particular time, means any *debt interests issued by the entity that are still *on issue at that time.
debt deduction
has the meaning given by section
820-40
.
debt interest
in an entity has the meaning given by Subdivision
974-B
.
debt-like trust instrument
has the meaning given by section
276-505
.
debt property
has the meaning given by section
243-30
.
decreased value shares
(Repealed by No 90 of 2002)
decrease time
for a *direct value shift has the meaning given by section
725-155
.
decreasing adjustment
has the meaning given by section
195-1
of the *GST Act.
deduct
has the meaning given by sections
8-1
and
8-5
.
deductible gift recipient
has the meaning given by section
30-227
.
deducting hybrid
has the meaning given by section
832-550
.
deducting hybrid mismatch
has the meaning given by section
832-545
.
deduction
means an amount that you can deduct.
Note:
For income years before 1997-98, deduction has the meaning given by section 8-3 of the Income Tax (Transitional Provisions) Act 1997 .
(a) of a *deduction/non-inclusion mismatch - has the meaning given by subsections 832-105(1) and 832-105(2) ; and
(b) of a *deduction/deduction mismatch - has the meaning given by subsection 832-110(2) ; and
(c) of a *hybrid financial instrument mismatch - has the meaning given by subsection 832-200(2) ; and
(d) of a *hybrid payer mismatch - has the meaning given by subsection 832-305(2) ; and
(e) of a *reverse hybrid mismatch - has the meaning given by subsection 832-395(2) ; and
(f) ofa *branch hybrid mismatch - has the meaning given by subsection 832-470(2) ; and
(g) of a *deducting hybrid mismatch - has the meaning given by subsection 832-545(2) ; and
(h) of an *offshore hybrid mismatch - means the *deduction component of the relevant hybrid financial instrument mismatch, hybrid payer mismatch, reverse hybrid mismatch, branch hybrid mismatch or deducting hybrid mismatch.
deduction/deduction mismatch
has the meaning given by section
832-110
.
deduction/non-inclusion mismatch
has the meaning given by section
832-105
.
deduction year
has the meaning given by section
170-20
.
default commutation notice
has the meaning given by section
136-10
in Schedule
1
to the
Taxation Administration Act 1953
.
Defence Department
(Repealed by No 110 of 2014)
Defence Minister
means the Minister administering section 1 of the
Defence Act 1903
.
Defence Secretary
means the Secretary of the Department administered by the *Defence Minister.
deferral reversal
, for a
*
superannuation interest, has the meaning given by section
133-25
in Schedule
1
to the
Taxation Administration Act 1953
.
deferred annuity
(Repealed by No 15 of 2007)
deferred BAS payer
, at a particular time, means an entity that has an obligation to notify the Commissioner of a *BAS amount at that time, other than:
(a) an entity that has an obligation at that time to give the Commissioner a *GST return for a monthly *tax period; or
(b) an entity whose obligation to notify a BAS amount at that time relates only to one or more of the following:
(i) an *amount withheld by a *medium withholder or a *large withholder;
(ii) the *PAYG instalment of an *annual payer.
Note:
You are therefore a deferred BAS payer if you have an obligation to give the Commissioner a GST return for a quarterly tax period or if you are a GST instalment payer within the meaning of the GST Act.
deferred roll-over gain
:
an asset has a deferred roll-over gain at a particular time if:
(a) before that time there was a roll-over under a provision or former provision of this Act in relation to a disposal or a *CGT event that happened in relation to the asset; and
(b) as a result of the roll-over all or part of a *capital gain from the disposal or CGT event was disregarded.
The amount of the deferred roll-over gain is equal to the amount of the capital gain that was disregarded, reduced by the amount (if any) by which the gain has been taken into account in working out a *net capital gain (section 102-5 ) or *net capital loss (section 102-10 ) in relation to the asset between the roll-over time and the particular time.
deferred roll-over loss
:
an asset has a deferred roll-over loss at a particular time if:
(a) before that time there was a roll-over under a provision or former provision of this Act in relation to a disposal or a *CGT event that happened in relation to the asset; and
(b) as a result of the roll-over all or part of a *capital loss from the disposal or CGT event was disregarded.
The amount of the deferred roll-over loss is equal to the amount of the capital loss that was disregarded, reduced by the amount (if any) by which the loss has been taken into account in working out a *net capital gain (section 102-5 ) or *net capital loss (section 102-10 ) in relation to the asset between the roll-over time and the particular time.
deferred superannuation income stream
has the meaning given by the
Superannuation Industry (Supervision) Regulations 1994
.
deferred to a debt account
, for a
*
superannuation interest, in relation to
*
assessed Division 293 tax, has the meaning given by section
133-10
in Schedule
1
to the
Taxation Administration Act 1953
.
deficit
:
(a)
section
205-40
sets out when a *franking account is in deficit; and
(b) section 208-125 sets out when an *exempting account is in deficit; and
(c) section 210-130 sets out when a *venture capital sub-account is in deficit.
defined benefit contributions
has the meaning given by sections
293-115
,
293-150
and
293-195
.
defined benefit income
has the meaning given by section
303-2
.
defined benefit income cap
has the meaning given by section
303-4
.
defined benefit interest
has the meaning given by section
291-175
.
defined benefit tax
has the meaning given by section
133-15
in Schedule
1
to the
Taxation Administration Act 1953
.
demerged entity
has the meaning given by section
125-70
.
demerger
has the meaning given by section
125-70
.
demerger dividend
has the meaning given by subsection
6(1)
of the
Income Tax Assessment Act 1936
.
demerger group
has the meaning given by section
125-65
.
demerger subsidiary
has the meaning given by section
125-65
.
demerging entity
has the meaning given by section
125-70
.
demutualise
: a mutual entity (within the meaning of the
Corporations Act 2001
) that issues one or more MCIs (within the meaning of that Act) is taken not to
demutualise
by doing so.
Note:
MCI is short for mutual capital instrument (see section 167AD of the Corporations Act 2001 ).
departing Australia superannuation payment
has the meaning given by section
301-170
.
depository entity
has the meaning given by section
166-260
.
depreciating asset
has the meaning given by section
40-30
.
depreciating asset lease
:
a
depreciating asset lease
is an agreement (including a renewal of an agreement) under which the entity that *holds the *depreciating asset grants a *right to use the asset to another entity. However, a
depreciating asset lease
does not include a
*
hire purchase agreement or a
*
short-term hire agreement.
Deputy Commissioner
means a Deputy Commissioner of Taxation.
derivative financial arrangement
has the meaning given by subsection
230-350(1)
.
derive
has a meaning affected by subsection
6-5(4)
.
design
of a uniform has the meaning given by subsection
34-25(2)
.
designated infrastructure project
means an infrastructure project designated under section
415-70
.
designated infrastructure project entity
has the meaning given by section
415-20
.
determined member component
has the meaning given by section
276-205
.
determined trust component
has the meaning given by section
276-255
.
development assistance
for a
*
film has the meaning given by section
376-55
.
(a) in relation to a *film, means expenditure to the extent to which it is incurred in meeting the development costs for the film and includes expenditure to the extent to which it is incurred on any of the following:
(i) location surveys and other activities undertaken to assess locations for possible use in the film;
(ii) storyboarding for the film;
(iii) scriptwriting for the film;
(iv) research for the film;
(v) casting actors for the film;
(vi) developing a budget for the film;
(vii) developing a shooting schedule for the film; and
(b) in relation to a *digital game, has the meaning given by section 378-35 .
died in the line of duty
has the meaning given by subsection
302-195(3)
.
digital currency
has the same meaning as in the *GST Act.
digital game
has the meaning given by section
378-20
.
diminishing value method
has the meaning given by sections
40-70
and
40-72
.
diminishing value rate
(Repealed by No 77 of 2001)
dining facility
has the meaning given by section
32-60
.
direct equity interests
in a company are *shares in the company.
direct forestry expenditure
has the meaning given by section
394-45
.
direct participation interest
has the meaning given by section
960-190
.
direct roll-over replacement
has the meaning given by section
723-110
.
direct small business participation percentage
has the meaning given by section
152-70
.
direct SRWUIP payment
has the meaning given by subsection
59-67(3)
.
direct value shift
has the meaning given by section
725-145
.
direct voting percentage
in a company has the meaning given by section
768-550
.
disability policy
means a *life insurance policy under which a benefit is payable in the event of:
(a) the death, by accident or by some other cause stated in the contract, of the person whose life is insured (the insured ); or
(b) injury to, or disability of, the insured as a result of accident or sickness; or
(c) the insured being found to have a stated condition or disease;
but does not include a contract of consumer credit insurance within the meaning of the Insurance Contracts Act 1984 .
disability superannuation benefit
means a *superannuation benefit if:
(a) the benefit is paid to an individual because he or she suffers from ill-health (whether physical or mental); and
(b) 2 legally qualified medical practitioners have certified that, because of the ill-health, it is unlikely that the individual can ever be *gainfully employed in a capacity for which he or she is reasonably qualified because of education, experience or training.
disaggregated attributable decrease
:
section
727-775
sets out how to determine whether an *indirect value shift has produced a
disaggregated attributable decrease
in the *market value of an *equity or loan interest.
disaggregated attributable increase
:
section
727-805
sets out how to determine whether an *indirect value shift has produced a
disaggregated attributable increase
in the *market value of an *equity or loan interest.
disallow
:
(a)
a *net capital loss
-
has the meaning given by section
175-40
; or
(b) a *capital loss - has the meaning given by section 175-55 .
disallowed capital allowance percentage
has the meaning given by subsection
250-150(4)
.
discount
:
an *equity or loan interest is issued at a
discount
as provided in section
725-150
.
discount capital gain
has the meaning given by Subdivision
115-A
.
discount percentage
has the meaning given by Subdivision
115-B
.
discretionary benefits
means investment account benefits (as defined by section
14
of the
Life Insurance Act 1995
) that are regarded as non-participating benefits for the purposes of that Act solely because of the operation of Prudential Rules No. 22 in force under section
252
of that Act.
disease
has the meaning given by subsection
34-20(3)
.
disentitling event
has the meaning given by section
385-163
.
disposal year
has the meaning given by subsection
385-105(2)
.
dispose of
a *CGT asset: you
dispose of
a CGT asset (in its capacity as a CGT asset) in the circumstances specified in section
104-10
.
disregarded small fund assets
has the meaning given by section
295-387
.
distributable profits
of a company has the meaning given by section
317
of the
Income Tax Assessment Act 1936
.
distributing body
has the meaning given by section
128U
of the
Income Tax Assessment Act 1936
.
distribution
, by a *corporate tax entity, has the meaning given by section
960-120
.
distribution event
has the meaning given by subsection
207-120(5)
.
distribution statement
has the meaning given by section
202-80
.
diverted profits tax
means tax imposed by the
Diverted Profits Tax Act 2017
.
divestiture registration requirement
(Repealed by No 54 of 2016)
dividend
has the meaning given by subsections
6(1)
and
(4)
and
6BA(5)
and section
94L
of the
Income Tax Assessment Act 1936
.
dividend shareholding of less than 1%
(Repealed by No 147 of 2005)
dividend stake
has the meaning given by section
166-235
.
dividend stripping operation
has the meaning given by section
207-155
.
Division 6C land
has the meaning given by section
12-448
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 230 financial arrangement
: a *financial arrangement is a
Division 230 financial arrangement
if Division
230
applies in relation to your gains and losses from the arrangement.
(a) the Division 230 starting value of an asset or liability that is or is part of a *Division 230 financial arrangement to which Subdivision 230-C (fair value method) applies is the amount of the asset or the amount of the liability according to the relevant standards mentioned in section 230-230 that apply in relation to the arrangement; and
(b) the Division 230 starting value of an asset or liability that is or is part of a Division 230 financial arrangement to which Subdivision 230-D (foreign exchange retranslation method) applies is the value of the asset or the amount of the liability according to the relevant standards mentioned in section 230-280 that apply in relation to the arrangement; and
(c) the Division 230 starting value of an asset or liability that is or is part of a Division 230 financial arrangement to which Subdivision 230-F (reliance on financial reports method) applies is the value of the asset or the amount of the liability according to the relevant standards mentioned in section 230-420 that apply in relation to the arrangement.
Division 293 tax
means tax imposed by the
Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Act 2013
.
(a) the Income Tax Assessment Act 1997 , so far as it relates to the * Division 293 tax; and
(b) any Act that imposes Division 293 tax; and
(c) the Taxation Administration Act 1953 , so far as it relates to any Act covered by paragraphs (a) and (b) (or to so much of that Act as is covered); and
(d) any other Act, so far as it relates to any Act covered by paragraphs (a) to (c) (or to so much of that Act as is covered); and
(e) regulations and other legislative instruments under an Act, so far as they relate to any Act covered by paragraphs (a) to (d) (or to so much of that Act as is covered).
Division 405 payment
has the meaning given by section
405-5
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 405 report
has the meaning given by section
405-10
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 410 payment
has the meaning given by section
410-5
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 410 report
has the meaning given by section
410-10
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 415 payment
has the meaning given by section
415-5
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 417 payment
has the meaning given by section
417-5
in Schedule
1
to the
Taxation Administration Act 1953
.
Division 832 control group
has the meaning given by section
832-205
.
documentary
has the meaning given by section
376-25
.
down interest
has the meaning given by section
725-155
.
DPT assessment
has the meaning given by section
145-10
in Schedule
1
to the
Taxation Administration Act 1953
.
dual inclusion income
has the meaning given by section
832-680
.
dual listed company arrangement
has the meaning given by section
125-60
.
dual listed company voting share
has the meaning given by section
125-60
.
dual resident investment company
has the meaning given by section
6F
of the
Income Tax Assessment Act 1936
.
dwelling
has the meaning given by section
118-115
.
early retirement scheme
has the meaning given by section
83-180
.
early retirement scheme payment
has the meaning given by section
83-180
.
early stage venture capital limited partnership
has the meaning given by subsection
118-407(4)
.
economic infrastructure facility
has the meaning given by section
12-439
in Schedule
1
to the
Taxation Administration Act 1953
.
Education Department
(Repealed by No 110 of 2014)
(a) a *superannuation guarantee education direction; or
(b) a *tax-records education direction.
Education Minister
(Repealed by No 15 of 2017)
Education Secretary
(Repealed by No 15 of 2017)
effective life
:
the
effective life
of a
*
depreciating asset is worked out under sections
40-95
,
40-100
,
40-102
,
40-103
,
40-105
and
40-110
.
effectively non-cancellable
has the meaning given by section
250-130
.
effectively non-contingent obligation
has the meaning given by section
974-135
.
election to rely on financial reports
has the meaning given by section
230-395
.
electronic payment
means a payment by way of electronic transmission, in an electronic format approved by the Commissioner.
electronic sales suppression tool
has the meaning given by section
8WAB
of the
Taxation Administration Act 1953
.
electronic signature
of an entity means a unique identification of the entity in electronic form that is approved by the Commissioner.
element taxed in the fund
has the meaning given by section
307-275
.
element untaxed in the fund
has the meaning given by section
307-275
.
eligible building site
(Repealed by No 77 of 2001)
eligible community housing provider
has the meaning given by section
980-10
.
eligible continuing substantial member
of a
*
former exempting entity has the meaning given by section
208-155
.
eligible Division 166 company
means a company:
(a) that is not a * widely held company; and
(b) in which:
(i) * voting stakes that carry rights to more than 50% of the voting power in the company; or
(ii) * dividend stakes that carry rights to receive more than 50% of any dividends that the company may pay; or
are beneficially owned (whether directly, or * indirectly through one or more interposed entities) by:
(iii) * capital stakes that carry rights to receive more than 50% of any distribution of capital of the company;
(iv) a widely held company; or
(v) an entity mentioned in subsection 166-245(2) that satisfies the condition in subsection 166-245(3) ; or
(vi) a * non-profit company; or
(vii) a charity; or
(viii) 2 or more entities mentioned in subparagraphs (iv) to (vii).
Note:
For subparagraphs (b)(i), (ii) and (iii), Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.
eligible for a granny flat interest
has the meaning given by subsection
137-10(2)
.
eligible mining operations
(Repealed by No 77 of 2001)
eligible mining or quarrying operations
(Repealed by No 77 of 2001)
eligible no-till seeder
(Repealed by No 83 of 2014)
eligible quarrying operations
(Repealed by No 77 of 2001)
eligible security
has the meaning given by section
775-190
.
eligible termination payment
(Repealed by No 15 of 2007)
eligible tier-1 company
has the meaning given by section
719-15
.
eligible venture capital investment
has the meaning given by sections
118-425
and
118-427
.
Note:
This meaning is also affected by subsection 118-435(2) .
eligible venture capital investor
has the meaning given by subsection
118-415(2)
.
eligible venture capital partner
has the meaning given by section
118-420
.
Emergency Management Minister
(Repealed by No 85 of 2013)
employee share scheme
has the meaning given by subsection
83A-10(2)
.
employee share trust
has the meaning given by subsection
130-85(4)
.
Employment Department
(Repealed by No 110 of 2014)
Employment Minister
(Repealed by No 110 of 2014)
Employment Secretary
means the Secretary of the Department responsible for employment policy.
employment termination payment
has the meaning given by section
82-130
.
end benefit
has the meaning given by section
133-130
in Schedule
1
to the
Taxation Administration Act 1953
.
endowment policy
has the meaning given by section
295-480
.
ends
, in relation to a
*
corporate change, has the meaning given by section
166-175
.
end user
of an asset has the meaning given by section
250-50
.
end value
of an asset has the meaning given by section
250-180
.
enterprise
has the meaning given by section
9-20
of the
*
GST Act.
entertainment
has the meaning given by section
32-10
.
entitled to child care benefit
(Repealed by No 49 of 2019)
entitlement to child care benefit
(Repealed by No 49 of 2019)
entitlement to an eligible cash bidding amount
(Repealed by No 77 of 2001)
entity
has the meaning given by section
960-100
.
entity EBITDA
has the meaning given by section
820-55
.
entity maintenance deduction
has the meaning given by subsection
86-65(2)
.
environmental organisation
(Repealed by No 40 of 2023)
environmental protection activities
has the meaning given by section
40-755
.
Environment Department
(Repealed by No 110 of 2014)
Environment Minister
means the Minister administering the
Environment Protection and Biodiversity Conservation Act 1999
.
Environment Secretary
means the Secretary of the Department administered by the *Environment Minister.
equity capital
of an entity at a particular time means the total of the following as at that time:
(a) the issue price (however described) of each * equity interest in the entity that is still * on issue, reduced by so much (if any) of the issue price as remains unpaid;
(b) the entity ' s general reserves and asset revaluation reserves;
(c) the entity ' s retained earnings;
(d) the entity ' s net earnings (if any) for the current year, reduced by:
(i) the * tax the entity expects to pay in respect of those net earnings; and
(ii) so much of each distribution to the entity ' s * members that has been made or declared as at that time as is attributable to the entity ' s earnings for the current year;
(e) if the entity is a * corporate tax entity - provisions for * distributions of profit;
(f) if paragraph (e) does not apply - provisions for distributions to the entity ' s * members;
reduced by the total of the following as at that time:
(g) the entity ' s negative retained earnings (if any);
(h) the entity ' s net loss (if any) for the current year.
equity holder
in a company means an entity that holds an
*
equity interest in the company.
equity interest
in an entity has the meaning given by:
(a) in the case of a company - Subdivision 974-C ; and
(b) in the case of a trust or partnership - section 820-930 .
equity interest
(Repealed by No 142 of 2003)
equity or loan interest
has the meaning given by section
727-520
.
ESS deferred taxing point
, for an *ESS interest, has the meaning given by sections
83A-115
and
83A-120
.
Note 1:
ESS is short for employee share scheme.
Note 2:
For ESS interests acquired before 1 July 2009, see subsection 83A-5(4) of the Income Tax (Transitional Provisions) Act 1997 .
ESS interest
, in a company, has the meaning given by subsection
83A-10(1)
.
Note:
ESS is short for employee share scheme.
ESVCLP
means an
*
early stage venture capital limited partnership.
ETP cap amount
has the meaning given by section
82-160
.
excepted MIT CSA income
has the meaning given by section
12-442
in Schedule
1
to the
Taxation Administration Act 1953
.
excepted trust
has the meaning given by section
272-100
in Schedule
2F
to the
Income Tax Assessment Act 1936
.
excess concessional contributions
has the meaning given by section
291-20
.
excess concessional contributions charge
(Repealed by No 45 of 2021)
excess concessional contributions determination
has the meaning given by section
97-5
in Schedule
1
to the
Taxation Administration Act 1953
.
excess concessional contributions tax
(Repealed by No 118 of 2013)
excess contributions tax
(Repealed by No 118 of 2013)
excess contributions tax assessment
(Repealed by No 118 of 2013)
excess deduction rules
(Repealed by No 77 of 2001)
excess exploration credit tax
means tax imposed by the
Excess Exploration Credit Tax Act 2015
.
excess foreign tax credits
(Repealed by
No 143 of 2007
)
excess franking offsets
has the meaning given by section
36-55
.
excess non-concessional contributions
has the meaning given by section
292-85
.
excess non-concessional contributions determination
has the meaning givenby subsection
97-25(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
excess non-concessional contributions tax
means tax imposed under the
Superannuation (Excess Non-concessional Contributions Tax) Act 2007
.
excess non-concessional contributions tax assessment
has the meaning given by sections
292-230
and
292-310
.
excess tax EBITDA amount
has the meaning given by section
820-60
.
excess transfer balance
has the meaning given by section
294-30
and modified by section
294-140
.
excess transfer balance determination
has the meaning given by section
136-10
in Schedule
1
to the
Taxation Administration Act 1953
.
excess transfer balance earnings
has the meaning given by section
294-235
.
excess transfer balance period
has the meaning given by section
294-230
.
excess transfer balance tax
means tax imposed by the
Superannuation (Excess Transfer Balance Tax) Imposition Act 2016
.
excess untaxed roll-over amount
has the meaning given by section
306-15
.
exchangeable interest
has the meaning given by section
130-100
.
excisable goods
has the meaning given by the *GST Act.
Excise Acts
has the meaning given by the
Excise Act 1901
.
excise duty
has the meaning given by the *GST Act.
excise-equivalent goods
has the same meaning as in the
Customs Act 1901
.
(a) the Excise Act 1901 ; and
(b) any Act that imposes *excise duty; and
(c) the Taxation Administration Act 1953 , so far as it relates to any Act covered by paragraphs (a) and (b); and
(d) any other Act, so far as it relates to any Act covered by paragraphs (a) to (c) (or to so much of that Act as is covered); and
(e) regulations under any Act, so far as they relate to any Act covered by paragraphs (a) to (d) (or to so much of that Act as is covered).
excluded complying superannuation/FHSA life insurance policy
(Repealed by No 70 of 2015)
excluded complying superannuation life insurance policy
means a *life insurance policy that:
(a) provides only for *superannuation death benefits, *disability superannuation benefits or temporary disability benefits of a kind referred to in paragraph 295-460(c) , that are not *participating benefits; or
(b) is an *exempt life insurance policy.
excluded equity interest
has the meaning given by section
820-946
.
excluded exempt income
(Repealed by No 66 of 2003)
excluded foreign resident
has the meaning given by subsection
118-110(4)
.
excluded loss
has the meaning given by sections
175-5
and
175-40
.
excluded STB
has the same meaning as in section
24AT
of the
Income Tax Assessment Act 1936
.
excluded virtual PST life insurance policy
(Repealed by No 45 of 2008)
exempt Australian government agency
means:
(a) the Commonwealth, a State or a Territory; or
(b) an authority of the Commonwealth or of a State or a Territory whose * ordinary income and * statutory income is exempt from income tax because of Division 50 ; or
(c) an STB (within the meaning of Division 1AB of Part III of the Income Tax Assessment Act 1936 ) whose * ordinary income and * statutory income is exempt from income tax under that Division of that Part.
(a) an entity all of whose * ordinary income and * statutory income is exempt from income tax because of this Act or because of another * Commonwealth law, no matter what kind of ordinary income or statutory income the entity might have; or
(b) an * untaxable Commonwealth entity.
Note:
See section 11-5 for a list of entities of the kind referred to in paragraph (a).
exempt film income
for an income year is so much of the amount, or the sum of the amounts, to which section
26AG
of the
Income Tax Assessment Act 1936
applies in relation to you for the income year as is *exempt income.
exempt foreign employment income
means amounts that are exempt from tax under section
23AF
or
23AG
of the
Income Tax Assessment Act 1936
.
exempt foreign government agency
means:
(a) the government of a foreign country, or of part of a foreign country; or
(b) an authority of the government of a foreign country, if the authority is of a similar nature to an authority that is an * exempt Australian government agency; or
(c) an authority of the government of part of a foreign country, if the authority is of a similar nature to an authority that is an * exempt Australian government agency.
exempt income
has the meaning given by section
6-20
.
Note:
For income years before 1997-98, exempt income has the meaning given by section 6-20 of the Income Tax (Transitional Provisions) Act 1997 .
exempt income subject to withholding tax
(Repealed by No 66 of 2003)
exempting account
means an account that arises under section
208-110
.
exempting company
(Repealed by No 101 of 2006)
exempting credit
has the meaning given by section
208-115
.
exempting debit
has the meaning given by section
208-120
.
exempting deficit
has the meaning given by subsection
208-125(2)
.
exempting entity
has the meaning given by section
208-20
and affected by section
220-500
if relevant.
exempting percentage
has the meaning given by section
208-95
.
exempting surplus
has the meaning given by subsection
208-125(1)
.
exempt institution that is eligible for a refund
has the meaning given in section
207-115
.
Note:
This definition is affected by sections 207-119 to 207-136 .
exempt life insurance policy
has the meaning given by section
320-246
.
Note:
This definition is affected by section 320-247 .
exempt life insurance policy liabilities
of a
*
life insurance company means liabilities of the company under the
*
life insurance policies referred to in subsection
320-245(1)
.
expected financial benefits
has the meaning given by section
250-95
.
expenditure
(Repealed by No 77 of 2001)
expenditure on software
(Repealed by No 77 of 2001)
exploration benefit
has the meaning given by subsection
40-1100(2)
.
exploration credit
means an exploration credit created, or to be created under Subdivision
418-D
.
exploration credits allocation
for an entity for an income year has the meaning given by section
418-81
.
exploration credits remainder
for an income year has the meaning given by subsection
418-103(2)
.
exploration investment
has the meaning given by section
418-111
.
exploration or prospecting
has a meaning affected by subsection
40-730(4)
.
exploration or prospecting authority
(Repealed by No 77 of 2001)
exploration or prospecting cash bidding payment
(Repealed by No 77 of 2001)
external indirect equity or loan interest
in a
*
subsidiary member of a
*
consolidated group or
*
MEC group has the meaning given by section
715-610
or
719-775
.
facility agreement
has the meaning given by section
775-185
.
failure to notify penalty
means the penalty worked out under
Division 2 of Part IIA
of the
Taxation Administration Act 1953
.
fair value election
has the meaning given by subsection
230-210(1)
.
Families Department
means the Department administered by the *Families Minister.
Families Minister
means the Minister administering the
Data-matching Program (Assistance and Tax) Act 1990
.
Families Secretary
means the Secretary of the *Families Department.
family law superannuation payment
has the meaning given by section
307-5.
family trust
has the same meaning as in section
272-75
in Schedule 2F to the
Income Tax Assessment Act 1936
.
farm-in farm-out arrangement
has the meaning given by subsection
40-1100(1)
.
farm management deposit
has the meaning given by Subdivision
393-B
.
FATCA Agreement
has the meaning given by section
396-15
in Schedule
1
to the
Taxation Administration Act 1953
.
FDA credit
(Repealed by No 147 of 2005)
FDA debit
(Repealed by No 147 of 2005)
FDA declaration
(Repealed by No 147 of 2005)
FDA declaration percentage
(Repealed by No 147 of 2005)
FDA surplus
(Repealed by No 147 of 2005)
feature film
includes a *film that is an animated feature film, but does not include a film that is not *feature-length.
feature-length
: a *film is
feature-length
if:
(a) if the film is a large format film - the film is at least 45 minutes in duration; and
(b) otherwise - the film is more than 60 minutes in duration.
feedstock revenue
has the meaning given by subsection
355-445(4)
.
fencing asset
has the meaning given by subsection
40-520(4)
.
FHSA
(Repealed by No 70 of 2015)
FHSA component
(Repealed by No 70 of 2015)
FHSA holder
(Repealed by No 70 of 2015)
FHSA home acquisition payment
(Repealed by No 70 of 2015)
FHSA ineligibility payment
(Repealed by No 70 of 2015)
FHSA misuse tax
(Repealed by No 70 of 2015)
FHSA mortgage payment
(Repealed by No 70 of 2015)
FHSA payment conditions
(Repealed by No 70 of 2015)
FHSA provider
(Repealed by No 70 of 2015)
FHSA trust
(Repealed by No 70 of 2015)
FHSS eligible concessional contribution
for a *financial year means a *concessional contribution for the financial year that is eligible to be released under section
138-35
in Schedule
1
to the
Taxation Administration Act 1953
.
FHSS eligible non-concessional contribution
for a *financial year means a *non-concessional contribution for the financial year that is eligible to be released under section
138-35
in Schedule
1
to the
Taxation Administration Act 1953
.
FHSS maximum release amount
has the meaning given by section
138-25
in Schedule
1
to the
Taxation Administration Act 1953
.
FHSS releasable contributions amount
has the meaning given by subsection
138-30(1)
in Schedule
1
to the
Taxation Administration Act 1953
.
FHSS released amounts
has the meaning given by section
313-10
.
FIF
(Repealed by No 114 of 2010)
FIFO cost method
of working out the *value of a *registered emissions unit has the meaning given by section
420-52
.
film
means an aggregate of images, or of images and sounds, embodied in any material.
film authority
has the meaning given by section
376-55
.
film component
has the meaning given by section
36-40
.
film deductions
for an income year are the following:
(a) amounts you could deduct for the income year under former section 124ZAFA of the Income Tax Assessment Act 1936 ;
(b) amounts that you could deduct for the income year and to which former section 124ZAO of that Act applied in relation to you for the income year.
film licensed investment company
(Repealed by No 136 of 2012)
film loss
has the meaning given by section
36-40
.
Note:
Section 701-30 (rules about where an entity is not a subsidiary member for the whole of an income year) may affect a film loss.
final RUNL
has the meaning given by section
715-35
.
finance charge
(Repealed by
No 79 of 2010
)
Finance Department
means the Department administered by the *Finance Minister.
financed property
has the meaning given by section
243-30
.
Finance Minister
means the Minister administering the
Public Governance, Performance and Accountability Act 2013
.
Finance Secretary
means the Secretary of the *Finance Department.
financial arrangement
has the meaning given by sections
230-45
to
230-55
.
financial benefit
has the meaning given by section
974-160
.
financial entity
, at a particular time, means an entity other than an
*
ADI that is any of the following at that time:
(a) an entity that:
(i) is a registered corporation under the FinancialSector (Collection of Data) Act 2001 ; and
(ii) at the particular time, carries on a *business of providing finance, but not predominantly for the purposes of providing finance directly or indirectly to, or on behalf of, the entity ' s associates; and
(iii) in the income year in which the particular time occurs, derives all, or substantially all, of its profits from that business;
(b) a * securitisation vehicle;
(c) an entity that:
(i) is a financial services licensee within the meaning of the Corporations Act 2001 whose licence covers dealings in at least one of the financial products mentioned in paragraphs 764A(1)(a), (b) and (j) of that Act; or
and carries on a business of dealing in securities, but not predominantly for the purposes of dealing in securities with, or on behalf of, the entity ' s * associates;
(ii) under paragraph 911A(2)(h) or (l) of the Corporations Act 2001 , is exempt from the requirement to hold an Australian financial services licence for dealings in at least one of those financial products;
Note 1:
Paragraphs 764A(1)(a), (b) and (j) of the Corporations Act 2001 deal respectively with securities, managed investment products and government debentures, stocks and bonds.
Note 2:
Paragraph 911A(2)(h) of that Act exempts financial services provided to wholesale clients by a person who is regulated by an overseas regulatory authority if the provision of the service is covered by an exemption from the Australian Securities and Investments Commission (ASIC).
Note 3:
Paragraph 911A(2)(l) of that Act empowers ASIC to exempt financial services.
(d) an entity that:
(i) is a financial services licensee within the meaning of the Corporations Act 2001 whose licence covers dealings in derivatives within the meaning of that Act; or
and carries on a business of dealing in such derivatives, but not predominantly for the purposes of dealing in such derivatives with, or on behalf of, the entity ' s associates.
(ii) under paragraph 911A(2)(h) or (l) of the Corporations Act 2001 , is exempt from the requirement to hold an Australian financial services licence for dealings in such derivatives;
[ CCH Note: Definition of " financial entity " amended by No 76 of 2023, s 3 and Sch 2 item 659, by inserting " Chapter 7 of " in para (d)(i), effective 20 October 2023. This misdescribed amendment cannot be given effect.]
financial institution
has the meaning given by section
202A
of the
Income Tax Assessment Act 1936
.
financial investment
includes the following:
(a) a *share in a company;
(b) an interest in a managed investment scheme (within the meaning of the Corporations Act 2001 );
(c) a *forestry interest in a *forestry managed investment scheme;
(d) a right or option in respect of an investment referred to in paragraph (a), (b) or (c);
(e) an investment of a like nature to any of those referred to in paragraphs (a) to (d).
financial statement net third party interest expense
has the meaning given by section
820-54
.
financial year
means a period of 12 months beginning on 1 July.
financing arrangement
has the meaning given by section
974-130
.
financing cost
has the meaning given by section
26-80
.
firearms surrender arrangements
means:
(a) an * Australian law; or
(b) administrative arrangements of a State or Territory;
implementing the agreement arising from the meeting of the Police Ministers held on 10 May 1996 concerning the surrender of prohibited firearms.
first continuity period
has the meaning given by section
165-120
.
first home super saver determination
has the meaning given by subsection
138-10(1)
in Schedule
1
to the
Taxation Administration Act 1953
.
first home super saver scheme
means the scheme set out in:
(a) Division 313 ; and
(b) Division 138 in Schedule 1 to the Taxation Administration Act 1953 ;
and other provisions as they relate to those Divisions.
first home super saver tax
means the tax imposed by the
First Home Super Saver Tax Act 2017
.
first use time
has the meaning given by section
41-30
.
FITO allocation amount
, of a particular character, has the meaning given by section
276-335
.
(a) an entity has a fixed entitlement to a share of the income or capital of a company, partnership or trust if the entity has a fixed entitlement to that share within the meaning of Division 272 in Schedule 2F to the Income Tax Assessment Act 1936 ; and
(b) despite paragraph (a) of this definition, a *beneficiary of a *CCIV sub-fund trust is taken to have a fixed entitlement to a share of the income or capital of the trust as provided by section 195-120 of this Act.
Note:
Section 165-245 of this Act affects when an entity is taken to have held or had, directly or indirectly, a fixed entitlement to a share of income or capital of a company.
fixed ratio earnings limit
has the meaning given by section
820-51
.
fixed ratio test disallowed amount
has the meaning given by section
820-57
.
fixed trust
: a trust is a
fixed trust
if entities have
*
fixed entitlements to all of the income and capital of the trust.
Note:
AMITs are treated as fixed trusts (see section 276-55 ).
flexible care
has the same meaning as in the
Aged Care Act 1997
.
FLIC
(Repealed by No 164 of 2007)
FLIC concessional capital
(Repealed by No 164 of 2007)
flows indirectly
:
(a)
subsections
207-50(2)
,
(3)
and
(4)
set out the circumstances in which a
*
franked distribution flows indirectly to an entity; and
(b) subsection 207-50(5) sets out the circumstances in which a franked distribution flows indirectly through an entity; and
(c) section 208-175 sets out the circumstances in which a * distribution * franked with an exempting credit flows indirectly to an entity; and
(d) section 220-405 sets out the circumstances in which a supplementary dividend (as defined in section OB1 of the Income Tax Act 1994 of New Zealand) flows indirectly to an entity; and
(e) subsections 380-25(2) , (3) and (4) set out the circumstances in which * NRAS rent flows indirectly to an entity; and
(f) subsection 380-25(5) sets out the circumstances in which NRAS rent flows indirectly through an entity.
FLP
(Repealed by No 114 of 2010)
FMD provider
(short for farm management deposit provider) has the meaning given by subsection
393-20(3)
.
fodder storage asset
has the meaning given by subsection
40-520(3)
.
Foreign Affairs Minister
means the Minister administering the
International Development Association Act 1960
.
foreign bank
means an
*
ADI that is a
*
foreign entity.
foreign controlled Australian company
has the meaning given by section
820-785
.
foreign controlled Australian entity
has the meaning given by section
820-780
.
foreign controlled Australian partnership
has the meaning given by section
820-795
.
foreign controlled Australian trust
has the meaning given by section
820-790
.
foreign currency
means a currency other than:
(a) Australian currency; or
(b) *digital currency; or
(c) anything prescribed by the regulations for the purposes of this paragraph.
foreign currency hedge
has the meaning given by subsection
230-350(2)
.
foreign dividend account
(Repealed by No 147 of 2005)
foreign entity
means an entity that is not an
*
Australian entity.
foreign equity distribution
has the meaning given by section
768-10
.
foreign establishment amounts
(Repealed by No 83 of 2003)
foreign exchange retranslation election
has the meaning given by subsections
230-255(1)
and
(3)
.
foreign general insurance company
means a company that is a foreign resident, and whose sole or principal business is
*
insurance business.
foreign government agency
means:
(a) the government of a foreign country or of part of a foreign country; or
(b) an authority of the government of a foreign country; or
(c) an authority of the government of part of a foreign country.
foreign hybrid
has the meaning given by section
830-5
.
foreign hybrid company
has the meaning given by section
830-15
.
foreign hybrid limited partnership
has the meaning given by section
830-10
.
foreign hybrid mismatch rules
means a *foreign law corresponding to any of Subdivisions
832-C
,
832-D
,
832-E
,
832-F
,
832-G
or
832-H
(which are about hybrid mismatches).
foreign hybrid net capital loss amount
has the meaning given by section
830-55
.
foreign hybrid revenue loss amount
has the meaning given by paragraph
830-45(1)(a)
.
foreign hybrid tax provisions
means:
(a) the Income Tax Assessment Act 1936 (other than Division 5A of Part III ); and
(b) this Act (other than Subdivision 830-A and 830-B ); and
(c) an Act that imposes any tax payable under the Income Tax Assessment Act 1936 or this Act; and
(d) the Income Tax Rates Act 1986 ; and
(e) the Taxation Administration Act 1953 , so far as it relates to an Act covered by paragraph (a), (b) or (c); and
(f) any other Act, so far as it relates to an Act covered by paragraph (a), (b), (c), (d) or (e); and
(g) regulations under an Act covered by any of the preceding paragraphs.
foreign income tax
has the meaning given by section
770-15
.
foreign income tax deduction
has the meaning given by section
832-120
.
foreign investment fund
(Repealed by No 114 of 2010)
foreign law
means a law of a foreign country.
Note:
Foreign country is defined in section 2B of the Acts Interpretation Act 1901 .
foreign life insurance company
means a company that is a foreign resident, and whose sole or principal business is life insurance.
foreign pension fund
has the meaning given by subsection
840-805(4B)
.
foreign public official
has the same meaning as in section 70.1 of the
Criminal Code
.
foreign resident
means a person who is not a resident of Australia for the purposes of the
Income Tax Assessment Act 1936
.
Note:
Foreign resident is not asterisked in this Act.
foreign resident life insurance policy
means a
*
life insurance policy that:
(a) was issued by a company in the course of carrying on a * business at or through the * permanent establishment of the company in a foreign country; and
(b) is held by an entity that is neither an * associate of the company nor a Part X Australian resident (within the meaning of Part X of the Income Tax Assessment Act 1936 ).
foreign revenue claim
has the meaning given by section
263-10
in Schedule
1
to the
Taxation Administration Act 1953
.
foreign service of document request
has the meaning given by section
263-60
in Schedule
1
to the
Taxation Administration Act 1953
.
foreign superannuation fund
(Repealed by No 58 of 2006).
foreign superannuation fund
:
(a)
a
*
superannuation fund is a
foreign superannuation fund
at a time if the fund is not an
*
Australian superannuation fund at that time; and
(b) a superannuation fund is a foreign superannuation fund for an income year if the fund is not an Australian superannuation fund for the income year.
foreign tax
(Repealed by
No 143 of 2007
)
foreign tax period
, in relation to an entity, in relation to a foreign tax imposed by a tax law of a foreign country, means the accounting period used by the entity for the purposes of determining the tax base under that law.
foreign trust for CGT purposes
means a trust that is not a
*
resident trust for CGT purposes.
foreign venture capital fund of funds
has the meaning given by subsections
118-420(4)
and
(5)
.
forestry interest
in a
*
forestry managed investment scheme has the meaning given by subsection
394-15(3)
.
forestry managed investment scheme
has the meaning given by subsection
394-15(1)
.
forestry manager
of a
*
forestry managed investment scheme has the meaning given by subsection
394-15(2)
.
forestry road
has the meaning given by section
43-72
.
forex cost base
has the meaning given by section
775-85
.
forex entitlement base
has the meaning given by section
775-90
.
forex realisation event
means any of the forex realisation events described in Division
775
.
forex realisation gain
:
for each
*
forex realisation event a
forex realisation gain
is worked out in the way described in the event.
forex realisation loss
:
for each
*
forex realisation event a
forex realisation loss
is worked out in the way described in the event.
forgive
a debt has the meaning given by sections
245-35
,
245-36
and
245-37
.
Note:
Subdivisions 245-C to 245-G (about forgiveness of commercial debts) apply to certain arrangements as if the arrangements were forgiveness of debts: see section 245-45 .
forgiveness income year
,
in relation to a debt that is *forgiven, means the income year in which the debt is forgiven.
form approved by Industry Innovation and Science Australia
has the same meaning as in section
33-5
of the
Venture Capital Act 2002
.
form approved by the Venture Capital Registration Board
(Repealed by
No 164 of 2007
)
form approved by the PDF Board
(Repealed by
No 78 of 2007
)
former exempting entity
has the meaning given by section
208-50
.
fourth element expenditure
has the meaning given by section
104-185
.
frankable distribution
has the meaning given by section
202-40
.
frankable with a venture capital credit
has the meaning given by section
210-50
.
franked distribution
:
a
*
distribution is franked if an entity
*
franks it in accordance with section
202-5
.
franked part
of a
*
distribution has the meaning given by section
976-1
.
franking account
means an account that arises under section
205-10
.
Note 1:
Section 205-15 sets out when a credit arises in that account.
Note 2:
Section 205-30 sets out when a debit arises in that account.
franking account balance
has the meaning given by section
214-30
.
franking assessment
has the meaning given by subsection
214-60(1)
and affected by section
214-100
.
franking credit
has the meaning given by section
205-15
.
franking debit
has the meaning given by section
205-30
.
franking deficit
has the meaning given by subsection
205-40(2)
.
franking deficit tax
means tax imposed under the
New Business Tax System (Franking Deficit Tax) Act 2002
.
Note:
That Act imposes tax where it is payable under section 205-45 of this Act.
franking entity
has the meaning given by section
202-15
.
franking percentage
has the meaning given by section
203-35
.
franking period
has the meaning given by sections
203-40
and
203-45
.
franking return
means a return required under Subdivision
214-A
.
franking surplus
has the meaning given by subsection
205-40(1)
.
franking tax
has the meaning given by section
214-40
.
franks with an exempting credit
has the meaning given by section
208-60
.
frank with a venture capital credit
has the meaning given by section
210-30
.
free carbon unit
(Repealed by No 83 of 2014)
(a) a body that is a friendly society for the purposes of the Life Insurance Act 1995 ; or
(b) a body that is registered or incorporated as a friendly society under a *State law or a *Territory law; or
(c) a body that is permitted, by a *State law or a *Territory law, to assume or use the expression friendly society ; or
(d) a body that, immediately before the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 , was registered or incorporated as a friendly society under a *State law or a *Territory law.
friendly society dispensary
means an approved pharmacist (within the meaning of Part VII of the
National Health Act 1953
) that is:
(a) a * friendly society; or
(b) a body carrying on * business for the benefit of members of a * friendly society.
(a) a fringe benefit as defined by subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 ; and
(b) a benefit that would be a fringe benefit (as defined by subsection 136(1) of that Act) if paragraphs (d) and (e) of the definition of employer in that subsection of that Act were omitted.
fringe benefits taxable amount
has the meaning given by section
5B
of the
Fringe Benefits Tax Assessment Act 1986
.
fringe benefits tax law
means a provision of an Act or regulations under which the extent of liability for tax imposed by the
Fringe Benefits Tax Act 1986
is worked out.
FRT disallowed amount
: see
fixed ratio test disallowed amount
.
FS assessment debt
means an FS assessment debt under:
(a) subsection 19AB(2) of the Social Security Act 1991 ; or
(b) the Student Assistance Act 1973 as in force at a time on or after 1 July 1998.
FTB amount
for an income year means an amount of family tax benefit (within the meaning of the
A New Tax System (Family Assistance) (Administration) Act 1999
) to which an individual is entitled in respect of the income year.
fuel tax credit
has the meaning given by section
110-5
of the
Fuel Tax Act 2006
.
fuel tax law
has the meaning given by section
110-5
of the
Fuel Tax Act 2006
.
fuel tax return
means a return under the
Fuel Tax Act 2006
.
fuel tax return period
has the meaning given by section
61-20
of the
Fuel Tax Act 2006
.
full self-assessment taxpayer
(Repealed by
No 79 of 2010
)
full year amounts
has the meaning given by section
165-60
.
full year car deduction
(Repealed by No 162 of 2015)
full year deductions
has the meaning given by subsections
165-55(5)
and
(6)
.
fund payment
has the meaning given by sections
12-405
and
12A-110
in Schedule
1
to the
Taxation Administration Act 1953
.
fund-raising event
has the meaning given by section
40-165
of the
*
GST Act, as modified by the omission of subparagraph
40-165(1)(b)(i)
of that Act.
funeral policy
means a
*
life insurance policy issued by a
*
friendly society for the sole purpose of providing benefits to pay for the funeral of the insured person.
Future Fund Board
means the Future Fund Board of Guardians established by section 34 of the
Future Fund Act 2006
.
gainfully employed
means employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment.
gaining entity
for an
*
indirect value shift has the meaning given by section
727-150
.
GDP-adjusted notional tax
has the meaning given by section
45-405
in Schedule
1
to the
Taxation Administration Act 1953
.
GDP amount
for a *quarter has the meaning given by section
45-405
in Schedule
1
to the
Taxation Administration Act 1953
.
general class investor
has the meaning given by subsections
820-46(2)
and
820-583(1)
.
general company tax rate
(Repealed by No 97 of 2008)
general deduction
has the meaning given by section
8-1
.
general insurance company
means a body corporate that carries on
*
insurance business.
general insurance policy
means a policy of insurance that is not a
*
life insurance policy or an
*
annuity instrument.
general interest charge
means the charge worked out under Part
IIA
of the
Taxation Administration Act 1953
.
general partner
means a partner of a *limited partnership whose liability in relation to the partnership is not limited.
general small business pool
has the meaning given by section
328-185
.
general STS pool
(Repealed by
No 80 of 2007
)
general transfer balance cap
has the meaning given by section
294-35
.
genuine prospector
(Repealed by No 77 of 2001)
genuine redundancy payment
has the meaning given by section
83-175
.
geothermal energy extraction
has the meaning given by subsection
15-40(4)
.
geothermal energy extraction right
(Repealed by No 96 of 2014)
geothermal energy resources
means matter occurring naturally within the Earth and containing energy as heat.
geothermal exploration information
has the meaning given by subsection
15-40(3)
.
geothermal exploration right
(Repealed by No 96 of 2014)
global financial statements
has the meaning given by section
960-570
.
global GST amount
has the meaning given by section 195-1 of the
*
GST Act.
(a) of working out whether a company has an unrealised net loss at a particular time, has the meaning given by section 165-115E ; and
(b) of working out whether a company has an adjusted unrealised loss at a particular time, has the meaning given by section 165-115U .
global parent entity
has the meaning given by section
960-560
.
goes for at least 4 hours
, in relation to a
*
seminar, has the meaning given by subsection
32-65(2)
.
government entity
(Repealed by No 41 of 2005)
government entity
†
has the meaning given by section
41
of the
A New Tax System (Australian Business Number) Act 1999
.
[ † CCH Note: This second definition of " government entity " was inserted by Act No 91 of 2000.]
Government FHSA contribution
(Repealed by No 70 of 2015)
GR group
has the meaning given by section
820-53
.
GR group member
has the meaning given by section
820-53
.
GR group net third party interest expense
has the meaning given by section
820-54
.
GR group parent
has the meaning given by section
820-53
.
granny flat interest
has the meaning given by subsection
137-10(1)
.
greater benefit from franking credits
has a meaning affected by subsections
204-30(7)
and (8).
(a) under an * indirect value shift, has the meaning given by subsection 727-150(3) ; and
(b) under a * presumed indirect value shift, has the meaning given by subsection 727-855(1) .
greenfields minerals expenditure
has the meaning given by section
418-80
.
greenfields minerals explorer
has the meaning given by section
418-75
.
gross averaging amount
has the meaning given by section
392-70
.
gross forgiven amount
has the meaning given by section
245-75
.
gross vehicle mass
of a vehicle means:
(a) the road weight specified by the manufacturer of the vehicle as the maximum design weight capacity of the vehicle; or
(b) in the absence of such a specification, the sum of:
(i) the weight of the vehicle; and
(ii) the weight of the maximum load for which the vehicle was designed (including the weight of the driver and a full tank of fuel, if applicable).
group EBITDA
has the meaning given by section
820-55
.
group heading
has the meaning given by section
950-100
.
group ratio
has the meaning given by section
820-53
.
group ratio earnings limit
has the meaning given by section
820-51
.
group turnover
(Repealed by
No 80 of 2007
)
group turnover
†
(Repealed by No 41 of 2005)
GST
has the meaning given by section
195-1
of the
*
GST Act.
GST Act
means the
A New Tax System (Goods and Services Tax) Act 1999
.
GST-free
has the meaning given by section
195-1
of the
*
GST Act.
GST group
has the meaning given by section
195-1
of the
*
GST Act.
GST inclusive market value
has the meaning given by section
195-1
of the
*
GST Act.
GST joint venture
has the meaning given by section
51-5
of the
*
GST Act.
GST joint venture
†
(Repealed by
No 143 of 2007
)
[ † CCH Note: This second definition of " GST joint venture " was inserted by No 176 of 1999.]
GST law
has the meaning given by section
195-1
of the
*
GST Act.
GST return
has the same meaning as in section
195-1
of the
*
GST Act.
GST turnover
has the meaning given by section
195-1
of the
*
GST Act.
guaranteed residual value
for an asset that is put to a tax preferred use has the meaning given by subsection
250-85(3)
.
guarantee period
, for an annuity provided under a *structured settlement or a *structured order, has the meaning given by subsection
54-35(2)
.
Guide
has the meaning given by section
950-150
.
harm prevention charity
(Repealed by No 40 of 2023)
(a) in relation to a * consolidated group or * consolidatable group - has the meaning given by section 703-15 ; and
(b) of a * MEC group - has the meaning given by section 719-75 .
head entity
of a demerger group has the meaning given by section
125-65
.
Health Department
(Repealed by No 110 of 2014)
Health Minister
means the Minister administering the
National Health Act 1953
.
Health Secretary
means the Secretary of the Department administered by the *Health Minister.
HECS-HELP benefit
(Repealed by No 55 of 2016)
hedged item
has the meaning given by subsections
230-335(10)
and
(11)
.
hedging financial arrangement
has the meaning given by subsections
230-335(1)
to
(9)
and sections
230-340
and
230-345
.
hedging financial arrangement election
has the meaning given by section
230-315
.
Heritage Department
(Repealed by No 110 of 2014)
Heritage Minister
(Repealed by No 110 of 2014)
Heritage Secretary
means the Secretary of the Department administered by the Minister administering the
Australian Heritage Council Act 2003
.
HIH company
has the meaning given by section
322-5
.
HIH Trust
has the meaning given by section
322-5
.
hire purchase agreement
means:
(a) a contract for the hire of goods where:
(i) the hirer has the right, obligation or contingent obligation to buy the goods; and
Note:
An example of a contingent obligation is a put option.
(ii) the charge that is or may be made for the hire, together with any other amount payable under the contract (including an amount to buy the goods or to exercise an option to do so), exceeds the price of the goods; and
(iii) title in the goods does not pass to the hirer until the option referred to in subparagraph (a)(i) is exercised; or
(b) an agreement for the purchase of goods by instalments where title in the goods does not pass until the final instalment is paid.
(a) hold a car for the purposes of Division 28 has the meaning given by section 28-90 ; and
(b) hold a * depreciating asset has the meaning given by section 40-40 ; and
(c) hold a *registered emissions unit has the meaning given by section 420-12 .
(d) (Repealed by No 96 of 2014)
horse opening value
has the meaning given by subsection
70-65(1)
.
horse reduction amount
has the meaning given by subsection
70-65(2)
.
horticultural plant
has the meaning given by section
40-520
.
horticulture
has the meaning given by section
40-535
.
horticulture business
(Repealed by No 77 of 2001)
hotel building
has the meaning given by section
43-95
.
(a) residential accommodation; or
(b) health, education, recreation or similar facilities, or facilities for meals; or
(c) works carried out directly in connection with such accommodation or facilities, including works for providing water, light, power, access or communications.
Housing Department
(Repealed by No 110 of 2014)
Housing Minister
(Repealed by No 110 of 2014)
Housing Secretary
means the Secretary of the Department administered by the Minister administering the
National Rental Affordability Scheme Act 2008
.
hybrid financial instrument mismatch
has the meaning given by section
832-200
.
hybrid mismatch
has the meaning given by sections
832-215
,
832-230
,
832-310
,
832-400
,
832-475
,
832-545
and
832-620
.
hybrid payer
has the meaning given by section
832-320
.
hybrid payer mismatch
has the meaning given by section
832-305
.
hypothetical tax position
has the meaning given by section
45-615
in Schedule
1
to the
Taxation Administration Act 1953
.
IGIS official
(short for Inspector-General of Intelligence and Security official) means:
(a) the Inspector-General of Intelligence and Security; or
(b) any other person covered by subsection 32(1) of the Inspector-General of Intelligence and Security Act 1986 .
immediate annuity
means an
*
annuity that is presently payable.
Immigration Department
means the Department administered by the Minister administering the
Migration Act 1958
.
Immigration Minister
(Repealed by No 110 of 2014)
Immigration Secretary
means the Secretary of the *Immigration Department.
import
has the meaning given by section
195-1
of the
*
GST Act.
import declaration
has the meaning given by the
Customs Act 1901
.
import declaration advice
has the meaning given by the
Customs Act 1901
.
imported hybrid mismatch
has the meaning given by section
832-615
.
importing payment
, in relation to an *offshore hybrid mismatch, has the meaning given by section
832-625
.
improvement threshold
has the meaning given by section
108-85
.
imputation benefit
has the meaning given by subsection
204-30(6)
.
imputation system
means the rules in Part
3-6
.
IMR capital gain
(Repealed by No 70 of 2015)
IMR capital loss
(Repealed by No 70 of 2015)
IMR deduction
(Repealed by No 70 of 2015)
IMR entity
has the meaning given by section
842-220
.
IMR financial arrangement
has the meaning given by section
842-225
.
IMR foreign fund
(Repealed by No 70 of 2015)
IMR income
(Repealed by No 70 of 2015)
IMR widely held entity
has the meaning given by sections
842-230
and
842-240
.
in a position to affect rights
has the meaning given by section
975-150
.
incapacitated entity
has the meaning given by section
195-1
of the
*
GST Act.
incentive amount
(Repealed by No 26 of 2012)
incidental costs
has the meaning given by section
110-35
.
incidental forestry scheme receipts
has the meaning given by subsection
394-30(4)
.
incidental shipping activities
has the meaning given by section
51-115
.
income bond
means a
*
life insurance policy issued by a
*
friendly society under which bonuses are regularly distributed.
income company
has the meaning given by section
170-10
.
income for surcharge purposes
,
for a person and an income year, means the sum of the following:
(a) the person ' s taxable income for the income year (disregarding the person ' s *assessable FHSS released amount for the income year and subsection 271-105(1) in Schedule 2F to the Income Tax Assessment Act 1936 );
(b) the person ' s *reportable fringe benefits total (if any) for the income year;
(c) the person ' s *reportable superannuation contributions for the income year;
(d) the person ' s *total net investment loss for the income year;
less the amount mentioned in subsection 301-20(3) for the person for the income year if the person is entitled to a tax offset under subsection 301-20(2) for the income year.
income tax
means income tax imposed by any of these:
(a) the Income Tax Act 1986 ;
(b) the Income Tax (Diverted Income) Act 1981 ;
(c) the Income Tax (Former Complying Superannuation Funds) Act 1994 ;
(d) the Income Tax (Former Non-resident Superannuation Funds) Act 1994 ;
(e) the Income Tax (Fund Contributions) Act 1989 .
income tax law
means a provision of an Act or regulations under which is worked out the extent of liability for:
(a) *tax; or
(b) *Medicare levy; or
(c) *franking tax; or
(d) *withholding tax; or
(e) *mining withholding tax; or
(f) tax payable in accordance with subsection 276-340(2) , 276-410(2) , 276-425(2) or 276-820(6) (AMIT offset taxation).
income tax liability
, of an entity for an income year, is the amount assessed as being the amount of income tax that the entity owes (as mentioned in step 4 of the method statement in subsection
4-10(3)
) for the financial year applicable to the entity under subsection
4-10(2)
.
income tax return
means a return under section
161
,
162
or
163
of the
Income Tax Assessment Act 1936
.
income unitholding of less than 1%
(Repealed by No 94 of 1999)
income year
: the basic meaning is given by subsections
4-10(2)
and
9-5(2)
. Some provisions refer to a particular income year. (They may describe it in different ways: for example, as the income year ending on 30 June 1998, or the 1997-98 income year.) For an entity that adopts an accounting period in place of the particular income year, the reference includes:
(a) the adopted accounting period; or
(b) if the adopted accounting period ends under section 18A of the Income Tax Assessment Act 1936 :
(i) in relation to the commencing of the income year - the adopted accounting period (as ending under that section); or
(ii) in relation to the ending of the income year - the accounting period ending under that section on the day on which the adopted accounting period would (but for that section) have ended.
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 .
in connection with
: an economic benefit is
*
provided
in connection with
a
*
scheme if at least one of the tests in section
727-160
is satisfied.
increase time
for a
*
direct value shift has the meaning given by section
725-155
.
increased value shares
(Repealed by No 90 of 2002)
increasing adjustment
has the meaning given by section
195-1
of the
*
GST Act.
independent Australian fund manager
has the meaning given by section
842-245
.
independent candidate
has the meaning given by section
30-244
.
independent member
has the meaning given by section
30-245
.
(a) for an amount mentioned in a provision listed at items 8 to 12 in section 960-265 - indexation factor has the meaning given by section 960-285 ; or
(aa) for the amount mentioned in the provision listed at item 14 in section 960-265 - indexation factor has the meaning given by section 960-290 ; or
(b) for an amount mentioned in a provision listed at another item in section 960-265 - indexation factor has the meaning given by section 960-275 .
indexed common ownership market value
(Repealed by No 90 of 2002)
(a) for an amount mentioned in a provision listed at items 8 to 12 in section 960-265 - index number has the meaning given by section 960-285 ; or
(b) for any other amount (other than the amount mentioned in the provision listed at item 14 in section 960-265 ) - index number has the meaning given by section 960-280 .
Indigenous holding entity
has the meaning given by subsection
59-50(6)
.
Indigenous land
means any estate or interest in land that, under an
*
Australian law relating to
*
Indigenous persons, is held for the use or benefit of Indigenous persons.
Indigenous person
means an individual who is:
(a) a member of the Aboriginal race of Australia; or
(b) a descendant of an Indigenous inhabitant of the Torres Strait Islands.
indirect Australian real property interest
has the meaning given by section
855-25
.
indirect equity interests
: an entity has
indirect equity interests
in a company if it has
*
shares or other interests in entities interposed between the entity and the company.
indirect equity or loan interest
has the meaning given by section
727-525
.
indirectly
: entities have the right to receive
*
dividends or capital of a company
indirectly
for their own benefit if they would receive the dividends or capital for their own benefit if:
(a) the company were to pay or distribute the dividends or capital; and
(b) the dividends or capital were then successively paid or distributed by each entity interposed between the company and those entities.
An * ultimate owner indirectly has a beneficial interest in a * CGT asset of an entity, or in * ordinary income that may be * derived from a * CGT asset of an entity, as described in section 149-15 .
indirect participation interest
has the meaning given by section
960-185
.
indirect primary equity interest
has the meaning given by section
727-220
.
indirect roll-over replacement
has the meaning given by section
723-110
.
indirect small business participation percentage
has the meaning given by section
152-75
.
indirect SRWUIP payment
has the meaning given by subsection
59-67(4)
.
indirect tax
means any of the following:
(a) * GST;
(b) * wine tax;
(c) * luxury car tax.
indirect tax document
means a document that:
(a) was obtained by you in the course of:
(i) your appointment or employment by the Commonwealth; or
(ii) the performance of services by you for the Commonwealth; or
(iii) the exercise of powers, or the performance of functions, by you under a delegation by the Commissioner; and
(b) was made or given under, or for the purposes of, an * indirect tax law.
Example:
A GST return is a document made for the purposes of an indirect tax law.
indirect tax information
means information that:
(a) was obtained by you in the course of:
(i) your appointment or employment by the Commonwealth; or
(ii) the performance of services by you for the Commonwealth; or
(iii) the exercise of powers, or the performance of functions, by you under a delegation by the Commissioner; and
(b) was disclosed or obtained under an * indirect tax law; and
(c) relates to the affairs of an entity other than you.
indirect tax law
means any of the following:
(a) the * GST law;
(b) the * wine tax law;
(c) the * luxury car tax law;
(d) the * fuel tax law.
indirect tax or excise ruling
means a *public ruling or a *private ruling, to the extent that the ruling relates to:
(a) an *indirect tax law (other than the *fuel tax law); or
(b) an *excise law.
indirect tax ruling
(Repealed by
No 74 of 2010
)
indirect value shift
has the meaning given by Subdivision
727-B
.
indirect voting percentage
in a company has the meaning given by section
768-555
.
individual
means a natural person.
(a) of working out whether a company has an unrealised net loss at a particular time, has the meaning given by section 165-115E ; and
(b) of working out whether a company has an adjusted unrealised loss at a particular time, has the meaning given by section 165-115U .
individual superannuation guarantee shortfall
has the meaning given by section
19
of the
Superannuation Guarantee (Administration) Act 1992
.
industrial activities
has the meaning given by section
43-150
.
(a) an * Australian law; or
(b) an award, order, determination or industrial agreement in force under an * Australian law.
Industry Department
means the Department administered by the Minister administering the
Industry Research and Development Act 1986
.
Industry Minister
(Repealed by No 110 of2014)
Industry Secretary
means the Secretary of the *Industry Department.
in existence
(Repealed by No 41 of 2005)
information exchange country
has the meaning given by section
12-385
in Schedule
1
to the
Taxation Administration Act 1953
.
Infrastructure CEO
means the Chief Executive Officer of Infrastructure Australia appointed under section 29 of the
Infrastructure Australia Act 2008
.
infrastructure project capital expenditure
has the meaning given by subsection
415-75(4)
.
infrastructure project designation rules
has the meaning given by section
415-100
.
in-house dining facility
has the meaning given by section
32-55
.
in-house software
is computer software, or a *right to use computer software, that you acquire, develop or have another entity develop:
(a) that is mainly for you to use in performing the functions for which the software was developed; and
(b) for which you cannot deduct amounts under a provision of this Act outside Divisions 40 and 328 .
initial head company instalment rate
, for a
*
head company of a
*
consolidated group, or a
*
provisional head company of a
*
MEC group, is an
*
instalment rate worked out on the basis of:
(a) for a group that comes into existence in an income year under section 703-50 or 719-50 - the first * base assessment of a company as the head company of that group for which the * base year is that income year; and
(b) for a group (the later group ) for which either of the following conditions is satisfied:
(i) the later group is * created from a group (the first group ) that comes into existence under section 703-50 or 719-50 ;
the first base assessment of a company as the head company of the first group, the later group or any other group covered by subparagraph (ii), for which the base year is the income year in which the first group comes into existence.
(ii) starting from the first group, consolidated groups or MEC groups are successively created, ending in the creation of the later group;
Note:
For example, subparagraph (b)(ii) covers a consolidated group that is created from a MEC group, which was in turn created from a consolidated group that came into existence under section 703-50 .
initial participant
in a
*
forestry managed investment scheme has the meaning given by subsection
394-15(5)
.
injected amount
has the meaning given by sections
175-10
,
175-20
and
175-85
.
injected income
(Repealed by No 147 of 1997)
(a) in relation to a *structured settlement, has the meaning given by subparagraph 54-10(1)(a) (i); and
(b) in relation to a *structured order, has the meaning given by subparagraph 54-10(1A)(a) (i).
Industry Innovation and Science Australia
means the board established by section
6
of the
Industry Research and Development Act 1986
.
input tax credit
has the meaning given by section
195-1
of the *GST Act.
input taxed
has the meaning given by section
195-1
of the *GST Act.
installed ready for use
means installed ready for use and held in reserve. However, a *mining, quarrying or prospecting right is not
installed ready for use
.
instalment group
has the meaning given by section
45-145
in Schedule
1
to the
Taxation Administration Act 1953
.
instalment income
has the meaning given by sections
45-120
,
45-260
,
45-280
,
45-285
,
45-286
and
45-465
in Schedule
1
to the
Taxation Administration Act 1953
.
instalment month
has the meaning given by section
45-65
in Schedule
1
to the
Taxation Administration Act 1953
.
instalment of petroleum resource rent tax
is an instalment of tax payable under
Division 2 of Part VIII
of the
Petroleum Resource Rent Tax Assessment Act 1987
.
instalment quarter
has the meaning given by section
45-60
in Schedule
1
to the
Taxation Administration Act 1953
.
instalment trust
has the meaning given by section
235-825
.
instalment trust asset
has the meaning given by section
235-825
.
insurance business
has the same meaning as in the
Insurance Act 1973
.
intellectual property
: an item of
intellectual property
consists of the rights (including equitable rights) that an entity has under a
*
Commonwealth law as:
(a) the patentee, or a licensee, of a patent; or
(b) the owner, or a licensee, of a registered design; or
(c) the owner, or a licensee, of a copyright;
or of equivalent rights under a *foreign law.
interest in membership interests
has the same meaning as in section
177EA
of the
Income Tax Assessment Act 1936
.
interest realignment adjustment
has the meaning given by subsection
40-364(7)
.
interest realignment arrangement
has the meaning given by subsection
40-363(5)
.
interest that will or may convert into another interest
has the meaning given by section
974-165
.
intermediary
(Repealed by No 32 of 2008)
intermediate controller
has the meaning given by subsection
727-530(2)
.
international emissions unit
(Repealed by No 83 of 2014)
international tax agreement
means an agreement (within the meaning of the
International Tax Agreements Act 1953
) to which that Act gives the force of law.
international tax sharing treaty
:
(a) means an agreement between Australia and another country under which Australia and the other country share tax revenues from activities undertaken in an area identified by or under the agreement; and
(b) does not include an agreement within the meaning of the International Tax Agreements Act 1953 .
interposed company
(Repealed by No 147 of 2005)
invalidity segment
, of an *employment termination payment, has the meaning given by section
82-150
.
investment body
for a *Part VA investment has the meaning given by section
202D
of the
Income Tax Assessment Act 1936
.
investment commitment time
has the meaning given by section
41-25
.
investment registration requirement
:
(a) in relation to a *VCLP - has the meaning given by subsection 9-1(2) of the Venture Capital Act 2002 ; and
(ab) in relation to an *ESVCLP - has the meaning given by subsection 9-3(2) of the Venture Capital Act 2002 ; and
(b) in relation to an *AFOF - has the meaning given by subsection 9-5(2) of the Venture Capital Act 2002 .
investor
for a *Part VA investment has the meaning given by section
202D
of the
Income Tax Assessment Act 1936
.
invoice
means a document notifying an obligation to make a payment.
involuntary roll-over superannuation benefit
has the meaning given by section
306-12
.
View history note
inward investing entity (ADI)
has the meaning given by sections
820-395
and
820-609
.
Note:
Section 820-430 allows an inward investor (financial) to be treated as an inward investing entity (ADI) in certain cases.
inward investing entity (non-ADI)
(Repealed by No 23 of 2024)
inward investing financial entity (non-ADI)
has the meaning given by section
820-185
and
820-583(1)
.
inward investment vehicle (financial)
has the meaning given by sections
820-185
,
820-583
,
820-609
and
820-610
.
Note:
Section 820-430 allows an inward investment vehicle (financial) to be treated as an outward investing entity (ADI) in certain cases.
inward investment vehicle (general)
(Repealed by No 23 of 2024)
inward investor (financial)
has the meaning given by section
820-185
.
Note:
Section 820-430 allows an inward investor (financial) to be treated as an inward investing entity (ADI) in certain cases.
inward investor (general)
(Repealed by No 23 of 2024)
irrigation water provider
has the meaning given by section
40-515
.
IRU
is an indefeasible *right to use a telecommunications cable system.
issue pool
, for exploration investment made in an entity in an income year, has the meaning given by section
418-115
.
issued
, in relation to a
*
debt interest, has the meaning given by paragraph
974-55(1)(d)
.
IVS period
has the meaning given by section
727-150
.
IVS time
has the meaning given by section
727-150
.
joint venture operator
for a
*
GST joint venture has the meaning given by section
195-1
of the
*
GST Act.
JPDA
(short for Joint Petroleum Development Area) has the same meaning as it has in the
Petroleum (Timor Sea Treaty) Act 2003
.
KiwiSaver scheme
has the meaning given by the KiwiSaver Act 2006 of New Zealand.
KiwiSaver scheme provider
means a provider (within the meaning of the KiwiSaver Act 2006 of New Zealand).
Kyoto unit
has the same meaning as in the
Australian National Registry of Emissions Units Act 2011
.
labour hire notional withheld amount
has the meaning given by section
16-125
in Schedule
1
to the
Taxation Administration Act 1953
.
labour hire notional withheld amount
has the meaning given by section
16-125
in Schedule
1
to the
Taxation Administration Act 1953
.
labour mobility program withholding tax
means income tax payable under Subdivision
840-S
.
Note:
The tax is imposed by the Income Tax (Labour Mobility Program Withholding Tax) Act 2012 and the rate of the tax is set out in that Act.
Laminaria and Corallina decommissioning levy
means levy imposed by the
Offshore Petroleum (Laminaria and Corallina Decommissioning Cost Recovery Levy) Act 2022
landcare operation
has the meaning given by section
40-635
.
land transport facilities borrowings agreement
(Repealed by No 41 of 2011)
land transport facility
(Repealed by No 41 of 2011)
large withholder
has the meaning given by section
16-95
in Schedule
1
to the
Taxation Administration Act 1953
.
(a) if an individual ' s employment or office would have terminated when he or she reached a particular age or completed a particular period of service - the day he or she would reach the age or complete the period of service (as the case may be); or
(b) in any other case - the day on which he or she would turn 65.
laundry expense
has the meaning given by section
900-40
.
law enforcement agency
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
leasing company
(Repealed by No 101 of 2006)
legally responsible
(Repealed by No 49 of 2019)
legal personal representative
means:
(a) an executor or administrator of an estate of an individual who has died; or
(b) a trustee of an estate of an individual who is under a legal disability; or
(c) a person who holds a general power of attorney that was granted by another person.
legal practitioner
means a person who is enrolled as a barrister, a solicitor or a barrister and solicitor of:
(a) a federal court; or
(b) a court of a State or Territory.
leisure facility
has the meaning given by subsection
26-50(2)
.
(a) under an * indirect value shift, has the meaning given by paragraph 727-150(3)(a) ; and
(b) under a * presumed indirect value shift, has the meaning given by paragraph 727-855(1)(c) .
liability
, of a *sub-fund of a *CCIV, means any of the liabilities of the sub-fund, ascertained in accordance with Subdivision
C
of Division
3
of Part
8B.5
of the
Corporations Act 2001
.
liability for incurred claims
has the same meaning as in the *applicable insurance contracts accounting standard.
Note:
For how to work out the adjusted liability for incurred claims, see section 321-20 .
liability for remaining coverage
has the same meaning as in the *applicable insurance contracts accounting standard.
Note:
For how to work out the adjusted liability for remaining coverage, see section 321-60 .
liable entity
has the meaning given by section
832-325
.
LIC capital gain
has the meaning given by section
115-285
.
life benefittermination payment
has the meaning given by subsection
82-130(2)
.
life events test
has the meaning given by subsection
118-110(5)
.
life insurance business
means:
(a) a business to the extent that it consists of issuing * life insurance policies; and
(b) any business that relates to a business to which paragraph (a) applies.
life insurance company
means a company registered under section
21
of the
Life Insurance Act 1995
.
life insurance entity
(Repealed by No 89 of 2000)
life insurance policy
has the meaning given to the expression
life policy
in the
Life Insurance Act 1995
but includes:
(a) a contract made in the course of carrying on business that is * life insurance business because of a declaration in force under section 12A or 12B of that Act; and
(b) a sinking fund policy within the meaning of that Act.
life insurance premium
includes consideration received or receivable in respect of the grant of, or the undertaking of liabilities in respect of, an
*
annuity or a
*
personal injury lump sum.
Note:
Certain other amounts are treated as life insurance premiums when the life insurance business of a life insurance company is transferred to another life insurance company: see section 320-320 .
like customable goods
has the same meaning as in the
Customs Act 1901
.
limited partner
means a partner of a
*
limited partnership whose liability in relation to the partnership is limited.
(a) an association of persons (other than a company) carrying on business as partners or in receipt of * ordinary income or * statutory income jointly, where the liability of at least one of those persons is limited; or
(b) an association of persons (other than one referred to in paragraph (a)) with legal personality separate from those persons that was formed solely for the purpose of becoming a * VCLP, an * ESVCLP, an * AFOF or a * VCMP and to carry on activities that are carried on by a body of that kind.
limited recourse debt
has the meaning given by section
243-20
.
linked assets and liabilities
has the meaning given by subsection
705-59(2)
.
linked group
has the meaning given by section
170-260
.
link note
(Repealed by No 41 of 2005)
listed country
has the meaning given by section
320
of the
Income Tax Assessment Act 1936
.
listed investment company
has the meaning given by section
115-290
.
listed public company
means a company
*
shares in which (except shares that carry a right to a fixed rate of
*
dividend) are listed for quotation in the official list of an
*
approved stock exchange. However, a company is
not
a
listed public company
if:
(a) a person (who is not a company) controls, or is able to control, or up to 20 persons (none of them companies) between them control, or are able to control, 75% or more of the voting power in the company (whether directly, or indirectly through one or more interposed entities); or
(b) a person (who is not a company) has, or up to 20 persons (none of them companies) have between them, the right to receive for their own benefit (whether directly, or * indirectly through one or more interposed entities) 75% or more of any * dividends that the company may pay; or
(c) a person (who is not a company) has, or up to 20 persons (none of them companies) have between them, the right to receive for their own benefit (whether directly, or * indirectly through one or more interposed entities) 75% or more of any distribution of capital of the company.
listed widely held trust
has the meaning given by section
272-115
in Schedule 2F to the
Income Tax Assessment Act 1936
.
live stock
does
not
include animals used as beasts of burden or working beasts in a
*
business other than a
*
primary production business.
local governing body
means a local governing body established by or under a
*
State law or
*
Territory law.
lodge electronically
: a document is lodged electronically if it is transmitted to the Commissioner in an electronic format approved by the Commissioner.
long life small business pool
(Repealed by No 23 of 2012)
long life STS pool
(Repealed by
No 80 of 2007
)
long service leave employment period
has the meaning given by subsection
83-90(4)
.
long term bond rate
, for a period, means:
(a) the average, expressed as a decimal fraction to 4 decimal places (rounding up if the fifth decimal place is 5 or more), of the daily assessed Australian Government bond capital market yields in respect of 10-year non-rebate Treasury bonds published by the Reserve Bank in relation to the period; or
(b) if no such yields in respect of bonds of that kind were published by the Reserve Bank in relation to the period, the decimal fraction determined by the Minister by legislative instrument for the purposes of this definition in relation to the period.
look-through earnout right
has the meaning given by subsection
118-565(1)
or
(4)
.
losing entity
for an
*
indirect value shift has the meaning given by section
727-150
.
loss carry back choice
has the meaning given by section
160-15
.
loss carry back tax offset
has the meaning given by section
160-5
.
loss carry back tax offset component
has the meaning given by subsection
160-10(2)
.
(a) at a particular time, has the meaning given by section 165-115R or 165-115S ; and
(b) in relation to a transfer of a * tax loss or a * net capital loss has the meaning given by section 170-10 or 170-110 .
loss denial balance
of a
*
loss denial pool of an entity has the meaning given by sections
715-60
,
715-70
,
715-110
,
715-135
,
715-355
and
715-360
.
loss denial pool
of an entity has the meaning given by sections
715-60
,
715-70
,
715-110
,
715-135
,
715-355
and
715-360
.
loss exposure amount
has the meaning given by section
830-60
.
loss-focussed basis
has the meaning given by section
727-780
.
loss year
has the meaning given by sections
36-10
,
165-70
and
175-35
.
Note:
The meaning of loss year in sections 36-10 , 165-70 and 175-35 is modified by section 36-55 for a corporate tax entity that has an amount of excess franking offsets.
low-cost plant
(Repealed by No 77 of 2001)
low-cost asset
has the meaning given by section
40-425
.
low rate cap amount
has the meaning given by section
307-345
.
low tax component
has the meaning given by section
295-545
.
low tax contributions
has the meaning given by sections
293-25
and
293-105
.
low-value asset
has the meaning given by section
40-425
.
low-value pool
(Repealed by No 77 of 2001)
LTF interest
(Repealed by No 41 of 2011)
luxury car
:
a *car is a
luxury car
at a time if section
40-230
would reduce its *cost as a *depreciating asset if an entity acquired it at that time for its *market value.
Note 1:
Division 242 treats a lease of a luxury car as a notional sale of the car by the lessor to the lessee financed by a notional loan by the lessor to the lessee.
Note 2:
Section 242-10 of the Income Tax (Transitional Provisions) Act 1997 extends this definition to cover reductions of cost under former provisions corresponding to section 40-230 .
luxury car lease payment
,
in relation to a *car to which Division
242
(about luxury car leases) applies, means an amount that the lessee under the lease is required to pay for the rental or hire of the car, but does not include:
(a) an amount in the nature of a penalty payable for failure to make a payment for rental or hire on time; or
(b) a *termination amount.
luxury car lease payment period
means a period for which a *luxury car lease payment under the lease is allocated or expressed to be payable.
Note:
If a luxury car lease payment period for a lease of a luxury car would otherwise be longer than 6 months, subsection 242-35(3) divides the original period into periods of no longer than 6 months.
luxury car tax
has the meaning given by section
27-1
of the
*
Luxury Car Tax Act.
Luxury Car Tax Act
means the
A New Tax System (Luxury Car Tax) Act 1999
.
luxury car tax law
has the meaning given by section
27-1
of the
*
Luxury Car Tax Act.
majority control
has the meaning given by section
45-145
in Schedule
1
to the
Taxation Administration Act 1953
.
majority underlying interests
in a
*
CGT asset has the meaning given by section
149-15
.
make
, in relation to a
*
film, has the meaning given by section
376-125
.
managed investment scheme
means an entity, with more than 20 members, that is:
(a) a managed investment scheme for the purposes of the Corporations Act 2001 ; or
(b) an entity with a similar status to a managed investment scheme under a * foreign law relating to corporate regulation.
managed investment trust
has the meaning given by section
275-10
.
managed investment trust withholding tax
means income tax payable under:
(a) Subdivision 840-M of this Act; or
(b) Subdivision 840-M of the Income Tax (Transitional Provisions) Act 1997 .
margin scheme
has the same meaning as in the *GST Act.
market integrity rules
means rules made under section
798G
of the
Corporations Act 2001
.
market value
has a meaning affected by Subdivision
960-S
.
market value method
of working out the *value of a *registered emissions unit has the meaning given by section
420-54
.
material decrease
(Repealed by No 90 of 2002)
material increase
(Repealed by No 90 of 2002)
(a) for an * outward investing financial entity (non-ADI) - has the meaning given by section 820-90 (or that section as applied by section 820-120 ); and
(b) for an *inward investing financial entity (non-ADI) covered by paragraph 820-185(1A)(a) (or 820-225(1)(a) ) - has the meaning given by section 820-190 (or that section as applied by section 820-225 ).
maximum available release amount
, for a
*
superannuation interest, has the meaning given by section
131-45
in Schedule
1
to the
Taxation Administration Act 1953
.
maximum exempt area
has the meaning given by section
118-255
.
maximum exploration credit amount
for an income year has the meaning given by subsection
418-85(2)
.
maximum franking credit
for a distribution has the meaning given by subsection
202-60(2)
.
maximum TC group
(Repealed by No 101 of 2006)
MBL benefit
has the meaning given by section
117-15
in Schedule
1
to the
Taxation Administration Act 1953
.
MBL reporting day
, for a *quarter, has the meaning given by subsection
115-5(3)
in Schedule
1
to the
Taxation Administration Act 1953
.
MDO
has the meaning given by section 5 of the
Medical Indemnity Act 2002
.
meal allowance
has the meaning given by section
900-30
.
meal allowance expense
has the meaning given by section
900-30
.
MEC group
has the meaning given by section
719-5
.
Note 1:
Part 3-90 contains rules relating to the tax treatment of consolidated groups. Division 719 (of that Part) applies those rules to MEC groups with modifications (see section 719-2 ).
Note 2:
Provisions in the Income Tax Assessment Act 1936 and in the Income Tax Assessment Act 1997 (other than in Part 3-90 ) referring only to consolidated groups do not apply to MEC groups.
Medicare levy
has the meaning given by the
Income Tax Assessment Act 1936
.
Medicare levy (fringe benefits) surcharge
means Medicare levy surcharge imposed by the
A New Tax System (Medicare Levy Surcharge
-
Fringe Benefits) Act 1999
.
Medicare levy surcharge
means:
(a) an amount (other than a nil amount) of * Medicare levy that is payable by you only because of section 8B , 8C , 8D , 8E , 8F or 8G of the Medicare Levy Act 1986 ; or
(b) * Medicare levy (fringe benefits) surcharge.
medium withholder
has the meaning given by section
16-100
in Schedule
1
to the
Taxation Administration Act 1953
.
(a) in relation to a *GST group - has the meaning given by section 195-1 of the *GST Act; and
(b) in relation to a *consolidated group or *consolidatable group - has the meaning given by section 703-15 ; and
(ba) in relation to a *MEC group - has the meaning given by section 719-25 ; and
(bb) in relation to a *potential MEC group - has the meaning given by section 719-10 ; and
(bc) in relation to a *country by country reporting group - has the meaning given by section 815-380 ; and
(bd) in relation to a *notional listed company group - has the meaning given by section 960-575 ; and
(be) in relation to a *sovereign entity group - has the meaning given by section 880-20 ; and
(c) in relation to an entity - has the meaning given by section 960-130 ; and
(d) in relation to a *copyright collecting society, means:
(i) any entity that has been admitted as a member under the society ' s *constitution; or
(ii) any entity that has authorised the society to license the use of his or her copyright material; and
(e) in relation to an *NRAS consortium - means:
(i) an entity (other than in the capacity as a partner of a partnership) that is a party to the contractual *arrangement, or to one of the contractual arrangements, that established the NRAS consortium (whether or not the entity was a party to the arrangement when the NRAS consortium was established); or
(ii) a partnership, if all of the partners of the partnership are parties to the contractual arrangement, or to one of the contractual arrangements, that established the NRAS consortium (whether or not the partners were parties to the arrangement when the NRAS consortium was established); and
(f) in relation to a *sub-fund of a *CCIV - means a person who is, under subsection 1222Q(3) of the Corporations Act 2001 , a member of the sub-fund; and
(g) in relation to an *obligor group - has the meaning given by section 820-49 .
member
(Repealed by No 41 of 2005)
member
(Repealed by No 41 of 2005)
member
(Repealed by No 68 of 2002)
member
(Repealed by No 41 of 2005)
member
(Repealed by No 41 of 2005)
member component
has the meaning given by section
276-210
.
member of the Forces
has the meaning given by section
52-105
.
member of the tax preferred end user group
has the meaning given by paragraph
250-60(4)(a)
.
member of the tax preferred sector
has the meaning given by paragraph
250-60(4)(b)
.
membership interest
in an entity has the meaning given by section
960-135
.
member spouse
means a member spouse within the meaning of Part
VIIIB
or
VIIIC
of the
Family Law Act 1975
.
metering point
on land has the meaning given by section
40-655
.
method of depreciation
(Repealed by No 77 of 2001)
miner
(Repealed by No 96 of 2014)
minerals
has a meaning affected by subsection
40-730(5)
.
minerals treatment
has the meaning given by section
40-875
.
(a) for an * outward investing entity (ADI) - has the meaning given by section 820-305 (or that section as applied by section 820-330 ); and
(b) for an * inward investing entity (ADI) - has the meaning given by section 820-400 (or that section as applied by section 820-420 ).
minimum continuity period
(Repealed by No 142 of 2003)
minimum holding period
, for an *ESS interest, has the meaning given by subsection
83A-45(5)
.
minimum training expenditure amount
has the meaning given by subsection
376-27(6)
.
mining and quarrying operations
has the meaning given by section
40-730
.
mining authority
(Repealed by No 77 of 2001)
mining building site
has the meaning given by section
40-740
.
mining capital expenditure
has the meaning given by section
40-860
.
mining cash bidding payment
(Repealed by No 77 of 2001)
mining entitlement
has the meaning given by subsection
124-710(2)
.
mining expenditure
(Repealed by No 96 of 2014)
mining loss
(Repealed by No 96 of 2014)
mining operations
(Repealed by No 14 of 2012)
mining or quarrying transport
(Repealed by No 77 of 2001)
mining payment
has the meaning given by section
128U
of the
Income Tax Assessment Act 1936
.
mining profit
(Repealed by No 96 of 2014)
mining project interest
(Repealed by No 96 of 2014)
mining project split
(Repealed by No 96 of 2014)
mining project transfer
(Repealed by No 96 of 2014)
mining, quarrying or prospecting information
has the meaning given by subsection
40-730(8)
.
mining, quarrying or prospecting right
is:
(a) an authority, licence, permit or right under an * Australian law to mine, quarry or prospect for * minerals, * petroleum or quarry materials; or
(b) a lease of land that allows the lessee to mine, quarry or prospect for minerals, petroleum or quarry materials on the land; or
(c) an interest in such an authority, licence, permit, right or lease; or
(d) any rights that:
(i) are in respect of buildings or other improvements (including anything covered by the definition of housing and welfare ) that are on the land concerned or are used in connection with operations on it; and
(ii) are acquired with such an authority, licence, permit, right, lease or interest.
However, a right in respect of anything covered by the definition of housing and welfare in relation to a quarrying site is not a mining, quarrying or prospecting right .
mining revenue
(Repealed by No 96 of 2014)
mining revenue event
(Repealed by No 96 of 2014)
mining site rehabilitation
has the meaning given by section
40-735
.
mining withholding tax
means income tax payable under section
128V
of the
Income Tax Assessment Act 1936
.
MIT agricultural income
has the meaning given by sections
12-448
and
12-449
in Schedule
1
to the
Taxation Administration Act 1953
.
MIT cross staple arrangement income
has the meaning given by sections
12-437
and
12-440
in Schedule
1
to the
Taxation Administration Act 1953
.
MIT participation interest
has the meaning given by section
275-40
.
MIT residential housing income
has the meaning given by sections
12-450
and
12-451
in Schedule
1
to the
Taxation Administration Act 1953
.
MIT trading trust income
has the meaning given by sections
12-446
and
12-447
in Schedule
1
to the
Taxation Administration Act 1953
.
MLS lump sums
has the meaning given by section
61-590
.
modified market value
of an entity has the meaning given by section
707-325
.
money
, in relation to the *consideration for a *taxable supply, has the same meaning as in the *GST Act.
(a) a right to receive money or something that is a *money equivalent under this definition; or
(b) a *financial arrangement (within the meaning of section 230-45 ).
moneylending debt
means a debt resulting from a loan of money in the ordinary course of a *business of lending money carried on by the creditor.
monthly payer
has the meaning given by section
45-136
in Schedule
1
to the
Taxation Administration Act 1953
.
more than 50% of the company
'
s capital distributions
has the meaning given by section
165-160
.
more than 50% of the company
'
s dividends
has the meaning given by section
165-155
.
more than 50% of the listed public company
'
s capital distributions
(Repealed by No 147 of 2005)
more than 50% of the listed public company
'
s dividends
(Repealed by No 147 of 2005)
more than 50% of the voting power
has the meaning given by section
165-150
.
more than 50% of the voting power in the listed public company
(Repealed by No 147 of 2005)
(a) more than a 50% stake in a company has the meaning given by section 165-37 ; and
(b) more than a 50% stake in the income or capital of a trust has the meaning given by section 269-50 in Schedule 2F to the Income Tax Assessment Act 1936 .
motor vehicle
means any motor-powered road vehicle (including a 4 wheel drive vehicle).
MPR test day
has the meaning given by subsection
45-138(4)
in Schedule
1
to the
Taxation Administration Act 1953
.
MRRT
(Repealed by No 96 of 2014)
MRRT allowance
(Repealed by No 96 of 2014)
MRRT law
(Repealed by No 96 of 2014)
MRRT liability
(Repealed by No 96 of 2014)
MRRT payable
(Repealed by No 96 of 2014)
MRRT return
(Repealed by No 96 of 2014)
MRRT year
(Repealed by No 96 of 2014)
multi-rate trustee
has the meaning given by section
45-455
in Schedule
1
to the
Taxation Administration Act 1953
.
mutual affiliate company
has the meaning given by section
121AC
of the
Income Tax Assessment Act 1936
.
mutual insurance company
has the meaning given by section
121AB
of the
Income Tax Assessment Act 1936
.
MySuper product
has the same meaning as in the
Superannuation Industry (Supervision) Act 1993
.
National Rental Affordability Scheme
has the same meaning as in the
National Rental Affordability Scheme Act 2008
.
native title
has the same meaning as in the
Native Title Act 1993
.
native title benefit
has the meaning given by subsection
59-50(5)
.
natural resource
(Repealed by No 88 of 2013)
natural resource
means
*
minerals or any other non-living resource of the land, sea-bed or sea.
NDIS amount
has the meaning given by the
National Disability Insurance Scheme Act 2013
.
necessary connection with Australia
(Repealed by
No 168 of 2006
)
net amount
has the same meaning as in section
195-1
of the
*
GST Act.
net assessable film income
for an income year is your *assessable film income for that year reduced by your *film deductions for that year.
net asset amount
has the meaning given by section
104-95
.
net capital gain
has the meaning given by sections
102-5
and
165-111
.
Note:
For income years before 1998-99, net capital gain has the meaning given by section 102-20 of the Income Tax (Transitional Provisions) Act 1997 .
net capital loss
has the meaning given by sections
102-10
and
165-114
and affected by section
701-30
.
net current termination value
of a
*
life insurance policy means so much of the
*
current termination value of the policy as relates to the part of the policy that is not reinsured under a
*
contract of reinsurance.
net debt deductions
has the meaning given by section
820-50
.
net exempt film income
for an income year is your *exempt film income for that year reduced by:
(a) any taxes payable in respect of that income in a country or place outside Australia; and
(b) any expenses (not of a capital nature) so far as you incurred them during that year in deriving that income.
net exempt income
has the meaning given by section
36-20
.
net forgiven amount
,
of a debt, has the meaning given by sections
245-85
and
245-90
.
net fuel amount
has the meaning given by section
60-5
of the
Fuel Tax Act 2006
.
net GST
:
Your
net GST
for a
*
supply, is:
(a) the * GST payable by you on the supply; plus
(b) the sum of any * increasing adjustments that you have relating to the supply; minus
(c) the sum of any * decreasing adjustments that you have relating to the supply.
(a) of a partnership - has the same meaning as in Division 5 of Part III of the Income Tax Assessment Act 1936 ; and
(b) of a trust (other than a *public trading trust or an *AMIT) - has the same meaning as in Division 6 of Part III of that Act; and
(c) of a public trading trust - has the same meaning as in Division 6C of Part III of that Act; and
(d) of an AMIT - means the AMIT ' s total assessable income, reduced by all deductions of the AMIT.
net income from working
(Repealed by No 20 of 2015)
net input tax credit
: Your
net input tax credit
for an
*
acquisition or
*
importation is:
(a) the amount of any * input tax credit to which you are entitled for the acquisition or * importation; minus
(b) the sum of any * increasing adjustments that you have relating to the acquisition or * importation; plus
(c) the sum of any * decreasing adjustments that you have relating to the acquisition or * importation.
net investment component of ordinary life insurance policies
has the meaning given by subsection
713-515(4)
.
net overstated amount
has the meaning given by subsection
104-525(3)
.
net premium
for a
*
life insurance policy means the amount of the
*
life insurance premium for the policy less the part (if any) of that premium that is reinsured under a
*
contract of reinsurance.
net risk component
of a
*
life insurance policy means so much of the policy
'
s risk component as:
(a) is not reinsured under a * contract of reinsurance; or
(b) is reinsured under a contract of reinsurance to which subsection 148(1) of the Income Tax Assessment Act 1936 applies.
net small business income
, of a *small business entity, has the meaning given by section
328-365
.
net STS income
(Repealed by
No 80 of 2007
)
net understated amount
has the meaning given by subsection
104-525(3)
.
net value
of an entity means the amount by which the sum of the
*
market values of the assets of the entity exceeds the sum of its liabilities.
net value of the CGT assets
of an entity has the meaning given by section
152-20
.
(a) for a *hybrid payer mismatch - has the meaning given by section 832-330 ; and
(b) for a *deducting hybrid mismatch - has the meaning given by section 832-560 .
new investment threshold
has the meaning given by section
41-35
.
new residential premises
has the same meaning as in the *GST Act.
new spectrum licence
(Repealed by No 77 of 2001)
New Zealand-sourced amount
has the meaning given by the regulations mentioned in section
312-5
(about trans-Tasman portability of retirement savings).
non-ADI financial institution
has the meaning given by subsection
128A(1)
of the
Income Tax Assessment Act 1936
.
non-arm
'
s length component
has the meaning given by section
295-545
.
non-arm
'
s length income
has the meaning given by sections
295-550
and
275-610
.
non-arm
'
s length limited recourse debt
has the meaning given by subsection
243-20(7)
.
non-assessable non-exempt income
has the meaning given by section
6-23
.
non-cash benefit
is property or services in any form except money. If a non-cash benefit is dealt with on behalf of an entity, or is provided or dealt with as an entity directs, the benefit is taken to be provided to the entity.
non-complying ADF
(Repealed by
No 9 of 2007
)
non-complying approved deposit fund
means an
*
approved deposit fund that is not a
*
complying approved deposit fund.
non-complying superannuation fund
means a
*
superannuation fund that:
(a) is a fund; and
(b) is not a * complying superannuation fund.
non-compulsory
, in relation to a
*
uniform, has the meaning given by subsection
34-15(2)
.
non-compulsory uniform
(Repealed by No 41 of 2005)
non-concessional contributions
has the meaning given by section
292-90
.
non-concessional contributions cap
has the meaning given by section
292-85
.
non-concessional MIT income
has the meaning given by section
12-435
in Schedule
1
to the
Taxation Administration Act 1953
.
non-copyright income
(Repealed by No 126 of 2009)
non-debt liabilities
, of an entity and at a particular time, means liabilities that the entity has at that time, other than:
(a) any * debt capital of the entity; or
(b) any * equity interest in the entity; or
(c) if the entity is a * corporate tax entity - a provision for a * distribution of profit; or
(ca) if paragraph (c) does not apply - a provision for a distribution to the entity ' s * members; or
(d) any liability of the entity under a securities loan arrangement if, as at that time, the entity:
(i) has received amounts for the sale of securities (other than any fees associated with the sale) under the arrangement; and
(ii) has not repurchased the securities under the arrangement; or
(e) a liability of the entity, to the extent that it meets the conditions for being taken into account in working out the * borrowed securities amount of the entity as at that time.
non-deductible right to future income
(Repealed by No 99 of 2012)
non-entity joint venture
means an arrangement that the Commissioner is satisfied is a contractual arrangement:
(a) under which 2 or more parties undertake an economic activity that is subject to the joint control of the parties; and
(b) that is entered into to obtain individual benefits for the parties, in the form of a share of the output of the arrangement rather than joint or collective profits for all the parties.
non-equity share
means a
*
share that is not an
*
equity interest in the company.
Note:
A share will not be an equity interest if it is characterised as, or forms part of a larger interest that is characterised as, a debt interest under Subdivision 974-B .
non-fixed trust
means a trust that is not a
*
fixed trust.
non-IMR Division 6E net income
(Repealed by No 70 of 2015)
non-IMR net capital gain
(Repealed by No 70 of 2015)
non-IMR net income
(Repealed by No 70 of 2015)
non-IMR partnership loss
(Repealed by No 70 of 2015)
non-IMR partnership net income
(Repealed by No 70 of 2015)
non-membership equity interest
:
an interest in an entity is a
non-membership equity interest
in the entity at a time to the extent that it is not an accounting liability (within the meaning of subsection
705-70(1)
) of the entity at that time, if:
(a) the interest is not a *membership interest in the entity at that time; and
(b) the interest is not a *debt interest in the entity at that time.
In determining the extent to which the interest is not an accounting liability at that time:
(c) treat each reference in subsection 705-70(1) to the joining entity as instead being a reference to the entity; and
(d) treat the reference in that subsection to the joining time as instead being a reference to that time
non-member spouse
means a non-member spouse within the meaning of Part
VIIIB
or
VIIIC
of the
Family Law Act 1975
.
non-portfolio interest test
: an interest held by an entity in another entity passes the
non-portfolio interest test
in the circumstances set out in section
960-195
.
non-primary production deductions
has the meaning given by subsection
392-85(3)
.
non-primary production shade-out amount
has the meaning given by subsections
392-90(2)
and
(3)
.
non-profit company
has the meaning given by section
3
of the
Income Tax Act 1986
.
non-profit sub-entity
has the meaning given by section
195-1
of the *GST Act.
non-quotation withholding payment
means a *withholding payment covered by Subdivision
12-E
in Schedule
1
to the
Taxation Administration Act 1953
.
Note:
Subdivision 12-E and Division 14 in that Schedule deal with collecting amounts on account of income tax payable by recipients of certain payments or non-cash benefits who have not quoted their tax file number or ABN, as appropriate.
non-resident life insurance policy
(Repealed by No 41 of 2005)
non-share capital account
means the account provided for by section
164-10
.
non-share capital return
has the meaning given by section
974-125
.
non-share distribution
has the meaning given by section
974-115
.
non-share dividend
has the meaning given by section
974-120
.
non-share equity interest
in a company means an
*
equity interest in the company that is not solely a
*
share.
no-TFN contributions income
has the meaning given by section
295-610
.
notional accounting period
(Repealed by No 114 of 2010)
notional adjustable value
(Repealed by No 83 of 2003)
notional buyer
has the meaning given by section
240-17
.
notional depreciation
for a lease period has the meaning given by section
20-120
.
notional depreciation amount
(Repealed by No 77 of 2001)
notional employer
has the meaning given by section
28-185
.
notional income
(Repealed by No 77 of 2001)
notional interest
has the meaning given by section
240-60
.
notional listed company group
has the meaning given by section
960-575
.
notional loan
(Repealed by
No 79 of 2010
)
notional loan principal
(Repealed by
No 79 of 2010
)
(a) of a company - has the meaning given by sections 165-50 and 165-75 ; and
(b) of a partnership - has the meaning given by sections 165-80 and 165-85 .
notional net capital gain
has the meaning given by section
165-108
.
notional net capital loss
has the meaning given by section
165-108
.
notional net income
of a partnership has the meaning given by sections
165-80
and
165-85
.
notional seller
has the meaning given by section
240-17
.
notional shareholder
(Repealed by No 147 of 2005)
notional tax
has the meaning given by sections
45-325
and
45-475
in Schedule
1
to the
Taxation Administration Act 1953
.
notional taxable income
has the meaning given by sections
165-50
and
165-75
.
notional taxed contributions
has the meaning given by section
291-170
.
notional undeducted cost
(Repealed by No 77 of 2001)
notional written down value
of a
*
depreciating asset has the meaning given by section
58-75
.
NRAS approved participant
(short for National Rental Affordability Scheme approved participant), of an *NRAS consortium, means a *member of the NRAS consortium who is the approved participant (within the meaning of the regulations made for the purposes of the
National Rental Affordability Scheme Act 2008
) for the NRAS consortium.
NRAS certificate
(short for National Rental Affordability Scheme certificate) means a certificate issued by the *Housing Secretary under the *National Rental Affordability Scheme.
NRAS consortium
(short for National Rental Affordability Scheme consortium) means a consortium, joint venture or *non-entity joint venture:
(a) established by one or more contractual *arrangements, the purpose of which are to facilitate the leasing of *NRAS dwellings; and
(b) that is not a *corporate tax entity, a *superannuation fund, a trust or a partnership.
NRAS dwelling
(short for National Rental Affordability Scheme dwelling) means an approved rental dwelling (within the meaning of the regulations made for the purposes of the
National Rental Affordability Scheme Act 2008
).
NRAS rent
(short for National Rental Affordability Scheme rent) means rent
*
derived from a *NRAS dwelling under the *National Rental Affordability Scheme for an income year.
NRAS year
has the same meaning as in the
National Rental Affordability Scheme Act 2008
.
NZ franking choice
has the meaning given by section
220-35
.
NZ franking company
has the meaning given by section
220-30
.
NZ resident
has the meaning given by section
220-20
.
OB activity
has the meaning given by section
121D
of the
Income Tax Assessment Act 1936
.
obligor group
has the meaning given by section
820-49
.
occupation specific clothing
has the meaning given by subsection
34-20(1)
.
officially quoted price
has the meaning given by subsections
124-784A(6)
and
(7)
.
off-market buy-back
means a purchase that is a buy-back and an off-market purchase for the purposes of
Division 16K of Part III
of the
Income Tax Assessment Act 1936
.
off-market purchase
has the meaning given by section
159GZZZJ
of the
Income Tax Assessment Act 1936
.
offshore banking unit
has the meaning given by section
128AE
of the
Income Tax Assessment Act 1936
.
offshore document
has the meaning given by section
353-25
in Schedule
1
to the
Taxation Administration Act 1953
.
offshore hybrid mismatch
has the meaning given by sections
832-195
,
832-300
,
832-390
,
832-465
and
832-540
.
offshore information
has the meaning given by section
353-25
in Schedule
1
to the
Taxation Administration Act 1953
.
old spectrum licence
(Repealed by No 77 of 2001)
ongoing development
, in relation to a *digital game, has the meaning given by subsection
378-25(6)
.
(a) a * debt interest is on issue as provided in paragraph 974-55(1)(e) ; and
(b) an * equity interest in an entity:
(i) is on issue from when it is issued until it stops being on issue because of subparagraph (ii); and
(ii) stops being on issue when, for reasons other than the economic performance of the entity (or of a * connected entity of the entity), there is no longer a reasonable likelihood that a substantial * financial benefit will be provided in respect of the interest under the * scheme, or under any of the schemes, that give rise to the interest.
on-lent amount
, of an entity and at a particulartime, means the value, as at that time, of:
(a) all the assets of the entity that are comprised by * debt interests issued by other entities; and
(b) all the assets of the entity that are comprised by leases for the hire of goods that are not covered by paragraph (a) and in relation to which the following subparagraphs are satisfied:
(i) each of the leases is for a term of 6 months or more;
(ii) the leases are part of the * business of hiring goods that the entity carries on;
(iii) the entity ' s business of hiring goods is not carried on predominantly for the purposes of hiring goods to the entity ' s * associates; and
(c) all the securities that were held by the entity that:
(i) have been sold by the entity under a reciprocal purchase agreement (otherwise known as a repurchase agreement), sell-buyback arrangement or securities loan arrangement; but
(ii) have not yet been repurchased by the entity under the agreement or arrangement; and
(d) if the entity:
(i) carries on a * business of dealing in securities; and
all * shares that:
(ii) does not carry on that business predominantly for the purposes of dealing in securities with, or on behalf of, the entity ' s * associates;
(iii) the entity holds at that time; and
(iv) are listed at that time for quotation in the official list of an * approved stock exchange; and
(v) are not shares in an * associate entity at that time of the entity.
on-market buy-back
means a purchase that is a buy-back and an on-market purchase for the purposes of
Division 16K of Part III
of the
Income Tax Assessment Act 1936
.
opening adjustable value
of a
*
depreciating asset has the meaning given by section
40-85
.
opening balance
(Repealed by No 77 of 2001)
opening pool balance
has the meaning given by section
328-195
.
operating entity
has the meaning given by section
12-436
in Schedule
1
to the
Taxation Administration Act 1953
.
oral ruling
has the meaning given by section
360-5
in Schedule
1
to the
Taxation Administration Act 1953
.
oral ruling arrangement
(Repealed by No 161 of 2005)
ordinary capital gain
has the meaning given by section
124ZW
of the
Income Tax Assessment Act 1936
.
ordinary class
for a taxable income of a
*
life insurance company has the meaning given by section
320-139
.
ordinary class
for a
*
tax loss of a
*
life insurance company has the meaning given by section
320-143
.
ordinary debt interest
has the meaning given by section
974-140
.
ordinary income
has the meaning given by section
6-5
.
ordinary investment policy
means a
*
life insurance policy that is not:
(a) a * complying superannuation life insurance policy; or
(b) an * exempt life insurance policy; or
(c) a policy that provides for * participating benefits or * discretionary benefits; or
(d) a policy (other than a * funeral policy) under which amounts are to be paid only on the death or disability of a person.
ordinary payment
is defined as set out in this table:
| Ordinary payment | ||
| Item | Ordinary payment , in relation to this kind of a payment: | has the meaning given by: |
| 1 | Payment under the ABSTUDY scheme | subsection 52-131(8) |
| 2 | Payment under the Military Rehabilitation and Compensation Act 2004 | subsection 52-114(3) |
| 3 | Social security payment | subsection 52-10(3) |
| 4 | Veterans ' affairs payment | subsection 52-65(4) |
original excess contributions tax assessment day
(Repealed by No 118 of 2013)
original excess non-concessional contributions tax assessment day
has the meaning given by section
292-305
.
original franking assessment day
has the meaning given by subsection
214-95(2)
.
outstanding
, within the context of
*
franking returns, has the meaning given by subsection
214-45(3)
.
outstanding claims
(Repealed by No 52 of 2024)
outstanding foreign hybrid net capital loss amount
has the meaning given by section
830-70
.
outstanding foreign hybrid revenue loss amount
has the meaning given by section
830-65
.
outstanding tax-related liability
of an entity at a particular time means a
*
tax-related liability of the entity:
(a) that has arisen at or before that time (whether or not it is due and payable at that time); and
(b) an amount of which has not been paid before that time.
outward investing entity (ADI)
has the meaning given by sections
820-300
,
820-583
and
820-609
.
Note:
Section 820-430:
outward investing entity (non-ADI)
(Repealed by No 23 of 2024)
outward investing financial entity (non-ADI)
has the meaning given by sections
820-85
,
820-583
,
820-609
and
820-610
.
Note:
Section 820-430 allows an outward investing financial entity (non-ADI) to be treated as an outward investing entity (ADI) in certain cases.
outward investor (financial)
(Repealed by No 23 of 2024)
outward investor (general)
(Repealed by No 23 of 2024)
over
, of a particular character, has the meaning given by section
276-345
.
over-depreciated
(Repealed by No 56 of 2010)
over-depreciation
(Repealed by No 56 of 2010)
over-franking tax
means tax imposed under the
New Business Tax System (Over-franking Tax) Act 2002.
Note:
The Act imposes tax where it is payable under section 203-50 of this Act.
overseas fund
has the meaning given by section 74 of the
Life Insurance Act 1995
.
overseas permanent establishment
, of an entity, means a
*
permanent establishment of the entity that is in a country other than Australia.
owner
of a *farm management deposit has the meaning given by subsection
393-25(1)
.
ownership interest
: an
ownership interest:
(a) in land or a * dwelling - has the meaning given by section 118-130 ; and
(b) in a company or trust - has the meaning given by section 125-60 .
ownership period
of a
*
dwelling has the meaning given by section
118-125
.
ownership test period
has the meaning given by sections
165-12
,
165-37
and
165-123
, and affected by sections
415-35
and
415-40
.
ownership test time
has the meaning given by section
166-145
.
paid-up share capital
of a company means the amount standing to the credit of the company
'
s
*
share capital account reduced by the amount (if any) that represents amounts unpaid on shares.
parent
: an individual is the
parent
of anyone who is the individual
'
s *child.
parental leave pay
has the meaning given by the
Paid Parental Leave Act 2010
.
part
of the
*
spectrum specified in a
*
spectrum licence has the meaning given by section 5 of the
Radiocommunications Act 1992
.
partial interest
in a
*
corporate tax entity has the meaning given by subsection
208-25(3)
.
partial realisation
(Repealed by No 77 of 2001)
participant
(Repealed by No 41 of 2005)
(a) participant , in relation to a * GST joint venture, has the meaning given by section 195-1 of the * GST Act; and
(b) participant in a * forestry managed investment scheme has the meaning given by subsection 394-15(4) .
participating benefit
has the meaning given by section
15
of the
Life Insurance Act 1995
.
participating PDF
has the meaning given by section
210-40
.
(a) an association of persons (other than a company or a * limited partnership) carrying on business as partners or in receipt of * ordinary income or * statutory income jointly; or
(b) a limited partnership.
Note 1:
Division 830 treats foreign hybrid companies as partnerships.
Note 2:
A reference to a partnership does not include a reference to a corporate limited partnership: see section 94K of the Income Tax Assessment Act 1936 .
partnership cost setting interest
, in a partnership, has the meaning given by section
713-210
.
partnership loss
has the same meaning as in
Division 5 of Part III
of the
Income Tax Assessment Act 1936
.
partner
'
s proportion
has the meaning given by subsection
355-505(2)
.
part of a distribution that is franked with an exempting credit
has the meaning given by section
976-10
.
part of a distribution that is franked with a venture capital credit
has the meaning given by section
976-15
.
part of a substantial shareholding
(Repealed by No 147 of 2005)
Part VA investment
means an investment of a kind mentioned in section
202D
of the
Income Tax Assessment Act 1936
.
party
, in relation to a *structured arrangement, has the meaning given by subsection
832-210(3)
.
passes
: a
*
CGT asset
passes
to a beneficiary in an individual
'
s estate in the way described in section
128-20
.
PAYE earner
(Repealed by No 91 of 2000)
PAYE earnings
(Repealed by No 91 of 2000)
PAYG instalment
means an instalment payable under Division
45
in Schedule
1
to the
Taxation Administration Act 1953
.
(a) for a *quarterly payer - an *instalment quarter in relation to which a *PAYG instalment is paid; and
(b) for an *annual payer - an income year in relation to which a PAYG instalment is paid.
PAYG instalment variation credit
means a credit under section
45-215
or
45-420
in Schedule
1
to the
Taxation Administration Act 1953
.
(a) for a *personal services entity that is a *small withholder - any *quarter; or
(b) for any other personal services entity - any month.
PAYG withholding branch
has the meaning given by section
16-142
in Schedule
1
to the
Taxation Administration Act 1953
.
PAYG withholding non-compliance tax
means the Pay as you go withholding non-compliance tax imposed under the
Pay As You Go Withholding Non-compliance Tax Act 2012
.
payment
, of a *carried interest, includes the meanings given in subsection
104-255(7)
.
payment split
means a payment split within the meaning of Part
VIIIB
or
VIIIC
of the
Family Law Act 1975
.
payment summary
has the meaning given by section
16-170
in Schedule
1
to the
Taxation Administration Act 1953
.
pays a PAYG instalment
has the meaning given by subsection
205-20(1)
.
pays diverted profits tax
has the meaning given by subsection
205-20(3A)
.
pays income tax
has the meaning given by subsection
205-20(3)
.
PDF
(pooled development fund) means a company that is a PDF within the meaning of the
Pooled Development Funds Act 1992
.
PDF Board
(Repealed by
No 78 of 2007
)
PE
: see
permanent establishment
.
pension age
has the meaning given by subsection
23(1)
of the
Social Security Act 1991
.
Note:
In Subdivision 52-E , pension age has the meaning given by subsection 52-131(9) .
performing artist
has the meaning given by subsections
405-25(2)
and
(3)
.
periodic aggregate tax information
has the meaning given by subsection
355-47(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
period of review
, for an assessment of an *assessable amount, has the meaning given by section
155-35
in Schedule
1
to the
Taxation Administration Act 1953
.
Note 1:
For the purposes of diverted profits tax, this definition is modified in respect of a DPT assessment (see section 145-15 in Schedule 1 to the Taxation Administration Act 1953 ).
Note 2:
For the purposes of Laminaria and Corallina decommissioning levy, this definition is modified in respect of an amount of that levy (see section 125-15 in Schedule 1 to the Taxation Administration Act 1953 ).
period of the loan
has the meaning given by subsection
25-25(5)
.
permanent establishment
has the meaning given by subsection
6(1)
of the
Income Tax Assessment Act 1936
.
permanent establishment article
has the meaning given by section
855-16
.
permitted entity value
has the meaning given by section
118-440
.
permitted loan
has the same meaning as in section
9-10
of the
Venture Capital Act 2002
.
personal injury annuity
has the meaning given by section
54-5
.
personal injury lump sum
has the meaning given by section
54-5
.
personal services business
has the meanings given by subsection
87-15(1)
and section
87-55
.
personal services business determination
means a determination under section
87-60
or
87-65
.
personal services business test
has the meaning given by subsection
87-15(2)
.
personal services entity
has the meaning given by subsection
86-15(2)
.
personal services income
has the meaning given by section
84-5
.
personal services payment remitter
has the meaning given by section
13-15
in Schedule
1
to the
Taxation Administration Act 1953
.
personal use asset
has the meaning given by section
108-20
.
petroleum
has the meaning given by subsection
40-730(6)
.
Petroleum Exploration Permit WA-523-P permit area
has the meaning given by subsection
417-10(2)
.
petroleum mining
(Repealed by No 77 of 2001)
petroleum resource rent tax
means tax imposed by any of the following:
(a) the Petroleum Resource Rent Tax (Imposition - General) Act 2012 ;
(b) the Petroleum Resource Rent Tax (Imposition - Customs) Act 2012 ;
(c) the Petroleum Resource Rent Tax (Imposition - Excise) Act 2012 ;
as assessed under the Petroleum Resource Rent Tax Assessment Act 1987 .
petroleum resource rent tax amount
means any debt or credit that arises directly under the *petroleum resource rent tax provisions.
petroleum resource rent tax law
means:
(a) the Petroleum Resource Rent Tax Assessment Act 1987 ; and
(b) any Act that imposes * petroleum resource rent tax; and
(c) the Taxation Administration Act 1953 , so far as it relates to any Act covered by paragraphs (a) and (b); and
(d) any other Act, so far as it relates to any Act covered by paragraphs (a) to (c) (or to so much of that Act as is covered); and
(e) regulations under an Act, so far as they relate to any Act covered by paragraphs (a) to (d) (or to so much of that Act as is covered).
petroleum resource rent tax provisions
means the *petroleum resource rent tax law, other than *BAS provisions.
PHIIB
(short for
private health insurance incentive beneficiary
) has the meaning given by the
Private Health Insurance Act 2007
.
plant
has the meaning given by section
45-40
.
plant lease
(Repealed by No 77 of 2001)
plant lessee
(Repealed by No 77 of 2001)
policy owners
'
retained profits
for
*
life insurance policies means Australian policy owners
'
retained profits, or overseas policy owners
'
retained profits, as defined by section
61
of the
Life Insurance Act 1995
, in relation to the statutory fund (within the meaning of section
29
of that Act) to which the business of issuing the policies relates.
policy termination value
, in relation to a
*
life insurance policy at a particular time, means the amount that is, within the meaning of prudential standards made under section
230A
of the
Life Insurance Act 1995
, the termination value of that policy at that time.
pool
(Repealed by No 77 of 2001)
pool closing balance
(Repealed by No 77 of 2001)
pool of construction expenditure
has the meaning given by section
43-85
.
pooled development fund
means a *PDF.
pooled interest
in an *eligible tier-1 company that is a member of a *MEC group has the meaning given by section
719-560
.
pooled superannuation trust
means a pooled superannuation trust within the meaning of section
48
of the
Superannuation Industry (Supervision) Act 1993
.
ported
, in relation to a *digital game, has the meaning given by subsection
378-25(4)
.
position to affect rights
has the meaning given by section
975-150
.
post-17/8/93 period
has the meaning given by subsection
83-90(3)
.
post-AMMA actual payment
has the meaning given by section
12A-210
in Schedule
1
to the
Taxation Administration Act 1953
.
post-CGT asset
means a *CGT asset that is not a *pre-CGT asset.
post-choice NZ franking company
has the meaning given by section
220-300
.
post, digital and visual effects production
for a *film has the meaning given by section
376-35
.
potential MEC group
has the meaning given by section
719-10
.
potential residential land
has the same meaning as in the *GST Act.
PPL superannuation contribution payment
has the meaning given by section
307-5
.
pre-16/8/78 period
has the meaning given by subsection
83-90(1)
.
pre-18/8/93 period
has the meaning given by subsection
83-90(2)
.
pre-2012 IMR capital gain
(Repealed by No 70 of 2015)
pre-2012 IMR income
(Repealed by No 70 of 2015)
pre-AMMA actual payment
has the meaning given by section
12A-210
in Schedule
1
to the
Taxation Administration Act 1953
.
pre-CGT asset
has the meaning given by section
149-10
.
pre-CGT factor
(Repealed by No 56 of 2010)
pre-CGT proportion
has the meaning given by section
705-125
.
precious metal
has the same meaning as in the *GST Act.
precluded asset
has the meaning given by subsection
122-25(3)
.
predominant economic interest
in an asset has the meaning given by sections
250-110
to
250-140
.
predominantly-services indirect value shift
has the meaning given by section
727-725
.
pre-existing audited book value
of a *depreciating asset has the meaning given by section
58-85
.
pre-July 83 segment
, of an *employment termination payment, has the meaning given by section
82-155
.
Pre-GST annual turnover
(Repealed by No 101 of 2006)
pre-mining condition
(Repealed by No 77 of 2001)
pre-mining expenditure
(Repealed by No 96 of 2014)
pre-mining project interest
(Repealed by No 96 of 2014)
pre-mining revenue
(Repealed by No 96 of 2014)
pre-owned
has the meaning given by subsection
118-428(2)
.
pre-school course
has the same meaning as in the *GST Act.
prescribed dual resident
has the meaning given by subsection
6(1)
of the
Income Tax Assessment Act 1936
.
prescribed excluded STB
means an *excluded STB that is prescribed by the regulations for the purposes of
Division 1AB of Part III
of the
Income Tax Assessment Act 1936
.
prescribed international unit
(Repealed by No 83 of 2014)
prescribed private fund
(Repealed by No 88 of 2009)
present value
of a *financial benefit has a meaning affected by section
250-100
.
preservation age
has the meaning given by Part
6
of the Superannuation Industry (Supervision) Regulations 1994.
pre-shift gain
has the meaning given by section
725-210
.
pre-shift loss
has the meaning given by section
725-210
.
presumed indirect value shift
has the meaning given by section
727-855
.
previous recoupment law
has the meaning given by section
20-55
.
price
, for a *taxable supply, has the same meaning as in the *GST Act.
primary course
has the same meaning as in the *GST Act.
primary entitlement
(Repealed by No 49 of 2019)
primary equity interest
in an entity has the meaning given by section
727-520
.
primary interest
in an entity has the meaning given by section
727-520
.
primary loan interest
in an entity has the meaning given by section
727-520
.
primary producer registered emissions unit
has the meaning given by section
420-13
.
primary production business
: you carry on a
primary production business
if you carry on a *business of:
(a) cultivating or propagating plants, fungi or their products or parts (including seeds, spores, bulbs and similar things), in any physical environment; or
(b) maintaining animals for the purpose of selling them or their bodily produce (including natural increase); or
(c) manufacturing dairy produce from raw material that you produced; or
(d) conducting operations relating directly to taking or catching fish, turtles, dugong, b ê che-de-mer, crustaceans or aquatic molluscs; or
(e) conducting operations relating directly to taking or culturing pearls or pearl shell; or
(f) planting or tending trees in a plantation or forest that are intended to be felled; or
(g) felling trees in a plantation or forest; or
(h) transporting trees, or parts of trees, that you felled in a plantation or forest to the place:
(i) where they are first to be milled or processed; or
(ii) from which they are to be transported to the place where they are first to be milled or processed.
primary production deductions
has the meaning given by subsection
392-80(3)
.
prime cost method
has the meaning given by section
40-75
.
prime cost rate
(Repealed by No 77 of 2001)
principal beneficiary
of a *special disability trust has the meaning given by:
(a) for a special disability trust within the meaning of the Social Security Act 1991 - subsection 1209M(1) of that Act; or
(b) for a special disability trust within the meaning of the Veterans ' Entitlements Act 1986 - subsection 52ZZZWA(1) of that Act.
principal class of shares
in a company means:
(a) those ordinary or common shares of the company that represent the majority of the voting power and value of the company; or
(b) if no single class of ordinary or common shares represents the majority of the voting power and value of the company - those classes of ordinary or common shares that represent the majority of the voting power and value of the company.
priority agreement
(Repealed by No 101 of 2006)
private ancillary fund
has the meaning given by section
426-105
in Schedule
1
to the
Taxation Administration Act 1953
.
private ancillary fund guidelines
has the meaning given by section
426-110
in Schedule
1
to the
Taxation Administration Act 1953
.
private company
means a company that is not a *public company for the income year.
private indirect tax ruling
(Repealed by
No 74 of 2010
)
private ruling
has the meaning given by sections
359-5
and
362-25
in Schedule
1
to the
Taxation Administration Act 1953
.
private use
, of a
*
car, has the meaning given by subsection
136(1)
of the
Fringe Benefits Tax Assessment Act 1986
.
privatised asset
has the meaninggiven by section
58-5
.
proceeds of crime order
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
proceeds of the disposal or death
has the meaning given by subsection
385-100(2)
.
proceeds of the sale of 2 wool clips
has the meaning given by subsection
385-135(3)
.
processed materials
(Repealed by No 77 of 2001)
processed minerals
has the meaning given by section
40-875
.
production associate
has the meaning given by subsection
405-25(4)
.
production expenditure
has the meaning given by Subdivision
376-C
.
product ruling
means a public ruling under the
Taxation Administration Act 1953
that states that it is a product ruling.
production sharing contract
has the meaning given by the *Timor Sea Maritime Boundaries Treaty.
professional arts business
has the meaning given by section
35-10
.
professional year 1
has the meaning given by subsection
405-50(3)
.
professional year 2
has the meaning given by subsection
405-50(4)
.
professional year 3
has the meaning given by subsection
405-50(4)
.
professional year 4
has the meaning given by subsection
405-50(4)
.
profit
on the disposal of a leased
*
car has the meaning given by section
20-115
.
project amount
has the meaning given by section
40-840
.
project life
has the meaning given by section
40-845
.
Project Wickenby officer
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
Project Wickenby taskforce agency
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
Project Wickenby taskforce supporting agency
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
promoter
has the meaning given by section
290-60
in Schedule
1
to the
Taxation Administration Act 1953
.
property right or interest
has the meaning given by subsection
354-5(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
property subdivision plan
has the same meaning as in the *GST Act.
prospecting entitlement
has the meaning given by subsection
124-710(1)
.
prospective gaining entity
for a
*
scheme has the meaning given by section
727-860
.
prospective losing entity
for a
*
scheme has the meaning given by section
727-850
.
protected information
has the meaning given by section
355-30
in Schedule
1
to the
Taxation Administration Act 1953
.
protective clothing
has the meaning given by subsection
34-20(2)
.
provide
a
*
fringe benefit or economic benefit includes allow, confer, give, grant or perform the benefit.
Note:
This is based on the definition of provide in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 .
provide affordable housing
has the meaning given by section
980-5
.
provided in relation to a tax preferred use of an asset
, in relation to a
*
financial benefit, has a meaning affected by section
250-85
.
provides medical indemnity cover
has the meaning given by section 5 of the
Medical Indemnity (Prudential Supervision and Product Standards) Act 2003
.
provisional head company
of a
*
MEC group means the company that holds an appointment in force under section
719-60
as the provisional head company of the group.
provisionally designated infrastructure project
means an infrastructure project designated provisionally under section
415-65
.
prudential capital deduction
, for an entity and at a particular time, means the total amounts that must be deducted in calculating the following in accordance with the
*
prudential standards as in force at that time:
(a) the eligible tier 1 capital of the entity at that time (within the meaning of those standards);
(b) the sum of the eligible tier 1 and tier 2 capital of the entity at that time (within the meaning of those standards).
prudential standards
means the prudential standards determined by *APRA and in force under section
11AF
of the
Banking Act 1959
.
public ancillary fund
has the meaning given by section
426-102
in Schedule
1
to the
Taxation Administration Act 1953
.
public ancillary fund guidelines
has the meaning given by section
426-103
in Schedule
1
to the
Taxation Administration Act 1953
.
public body
(Repealed by No 121 of 1997)
public company
means a company that is a public company (as defined by section
103A
of the
Income Tax Assessment Act 1936
) for the income year.
public financial entity
has the meaning given by section
880-130
.
public indirect tax ruling
(Repealed by
No 74 of 2010
)
public non-financial entity
has the meaning given by section
880-130
.
public official
means an employee or official of an *Australian government agency or of a *local governing body.
public ruling
has the meaning given by sections
358-5
and
362-5
in Schedule
1
to the
Taxation Administration Act 1953
.
public sector superannuation scheme
has the same meaning as in the
Superannuation Industry (Supervision) Act 1993
.
public trading trust
has the meaning given by section
102R
of the
Income Tax Assessment Act 1936
.
publicly traded unit trust
has the meaning given by section
149-50
.
purpose of producing assessable income
: something is done for the
purpose of producing assessable income
if it is done:
(a) for the purpose of gaining or producing assessable income; or
(b) in carrying on a *business for the purpose of gaining or producing assessable income.
Note:
Sections 26-19 (about using property in gaining or producing rebatable benefits) and 32-15 (about using property in providing entertainment) treat use of property as not being for the purpose of producing assessable income.
purposes of the Project Wickenby taskforce
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
put to a tax preferred use
, in relation to an asset, has the meaning given by section
250-60
.
qualified person
(Repealed by No 101 of 2006)
qualifying Australian development expenditure
has the meaning given by section
378-40
.
qualifying Australian production expenditure
has the meaning given by Subdivision
376-C
.
qualifying forex account
means an account that:
(a) is denominated in a particular *foreign currency; and
(b) (Repealed by No 15 of 2009)
(c) either:
(i) has the primary purpose of facilitating transactions; or
(ii) is a credit card account.
qualifying interest
(Repealed by No 77 of 2001)
qualifying investor
has the meaning given by section
43-220
.
qualifying purpose
(Repealed by No 77 of 2001)
qualifying right
(Repealed by No 133 of 2009)
qualifying security
has the same meaning as in
Division 16E of Part III
of the
Income Tax Assessment Act 1936
.
qualifying share
(Repealed by No 133 of 2009)
qualifying SME investment
means an
*
SME investment that is made in accordance with Division 1 of Part 4 of the
Pooled Development Funds Act 1997
.
[ CCH Note: The insert from No 16 of 2003 gives the incorrect year for the Pooled Development Funds Act . The year should read " 1992 " .]
quarry materials
(Repealed by No 77 of 2001)
quarter
means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December.
quarterly instalment component
has the meaning given by section
45-610
in Schedule
1
to the
Taxation Administration Act 1953
.
quarterly payer
means an entity that is liable to pay *PAYG instalments and is not an
*
annual payer or
*
monthly payer.
quarterly payer who pays 2 instalments annually on the basis of GDP-adjusted notional tax
has the meaning given by section
45-134
in Schedule
1
to the
Taxation Administration Act 1953
.
quarterly payer who pays 4 instalments annually on the basis of GDP-adjusted notional tax
has the meaning given by section
45-132
in Schedule
1
to the
Taxation Administration Act 1953
.
quarterly payer who pays on the basis of GDP-adjusted notional tax
has the meaning given by section
45-130
in Schedule
1
to the
Taxation Administration Act 1953
.
quarterly payer who pays on the basis of instalment income
has the meaning given by section
45-125
in Schedule
1
to the
Taxation Administration Act 1953
.
quasi-owner
(Repealed by No 77 of 2001)
quasi-ownership right
over land means:
(a) a lease of the land; or
(b) an easement in connection with the land; or
(c) any other right, power or privilege over the land, or in connection with the land.
quote
:
(a)
quote
an entity
'
s *ABN means quote in a form and manner approved by the Commissioner;
(b) quote a *tax file number in connection with a *Part VA investment: you quote your tax file number in connection with the investment if you are taken, for the purposes of Part VA of the Income Tax Assessment Act 1936 , to have quoted the number in connection with the investment;
(c) quote a tax file number to a trustee: the beneficiary of a trust quotes the beneficiary ' s tax file number to the trustee of the trust if:
(i) Division 4B of Part VA of the Income Tax Assessment Act 1936 applies to the trustee and to the beneficiary; and
(ii) the beneficiary is taken, for the purposes of that Part, to have quoted the beneficiary ' s tax file number to the trustee.
quoted
(Repealed by No 56 of 2010)
quoted (for superannuation purposes)
has the meaning given by section
295-615
.
R
&
D activities
has the meaning given by section
355-20
.
R
&
D entity
has the meaning given by section
355-35
.
R
&
D partnership
has the meaning given by subsection
355-505(1)
.
RBA
has the same meaning as in Part
IIB
of the
Taxation Administration Act 1953
.
RBA surplus
has the same meaning as in Part
IIB
of the
Taxation Administration Act 1953
.
realisation event
has the meaning given by sections
977-5
,
977-20
and
977-55
.
realisation-time method
means the method (for determining the effect of *indirect value shifts) for which Subdivision
727-G
provides.
realised for income tax purposes
:
(a) a gain is realised for income tax purposes as provided in sections 977-15 , 977-35 , 977-40 and 977-55 ; and
(b) a loss is realised for income tax purposes as provided in sections 977-10 , 977-25 , 977-30 and 977-55 .
reasonably arguable
has the meaning given by section
284-15
in Schedule
1
to the
Taxation Administration Act 1953
.
reasonably arguable threshold
for an income year has the meaning given by subsection
284-90(3)
in Schedule
1
to the
Taxation Administration Act 1953
.
receives a refund of diverted profits tax
has the meaning given by subsection
205-35(1A)
.
receives a refund of income tax
has the meaning given by section
205-35
.
recognised company accounts
, for a period, of a company that is a foreign resident means:
(a) accounts that are prepared in relation to the company for the period in accordance with standards covered by subsection 820-960(1C) or (1D) ; or
(b) if there are no such accounts for the period - accounts that:
(i) are prepared in relation to the company for the period in accordance with commercially accepted accounting principles; and
(ii) give a true and fair view of the financial position of the company.
recognised consolidated accounts
, for a period, of 2 or more companies that are foreign residents means:
(a) consolidated accounts that are prepared in relation to those companies for the period in accordance with standards covered by subsection 820-960(1C) or (1D) ; or
(b) if there are no such accounts for the period - consolidated accounts that:
(i) are prepared in relation to those companies for the period in accordance with commercially accepted accounting principles; and
(ii) give a true and fair view of the financial position of the companies on a consolidated basis.
recognised new investment amount
has the meaning given by section
41-20
.
(a) a *registered tax agent; or
(b) a registered BAS agent (within the meaning of the Tax Agent Services Act 2009 ); or
(c) a qualified tax relevant provider (within the meaning of the Corporations Act 2001 ); or
(d) a legal practitioner.
recoupment
has the meaning given by section
20-25
.
recreation
includes amusement, sport or similar leisure-time pursuits.
recreational club
has the meaning given by subsection
26-45(2)
.
(a) *shares that are liable to be redeemed; or
(b) shares that, at the option of the company that issued them, are liable to be redeemed.
reduce a franking assessment
has the meaning given by subsection
214-125(2)
.
reduced beneficiary
'
s share
of a trust
'
s net income for an income year has the meaning given by section
45-483
in Schedule
1
to the
Taxation Administration Act 1953
.
reduced cost base
of a *CGT asset has the meaning given by Subdivision
110-B
.
reduced net asset amount
has the meaning given by section
104-100
.
reduced no beneficiary
'
s share
of a trust
'
s net income for an income year has the meaning given by section
45-483
in Schedule
1
to the
Taxation Administration Act 1953
.
reduction amount
has the meaning given by subsections
385-120(2)
and
(3)
.
referable
: a *share in a *CCIV is
referable
to a *sub-fund of the CCIV if it is so referable under subsection
1230(1)
of the
Corporations Act 2001
.
refund of income tax
(Repealed by No 41 of 2005)
registered auditor
, in relation to an entity, means:
(a) a person registered as an auditor under a law in force in a State or a Territory; or
(b) if the entity is not an Australian resident - a person registered as an auditor under a law in force in the country of which the entity is a resident.
registered charity
means an entity that is registered under the
Australian Charities and Not-for-profits Commission Act 2012
as the type of entity mentioned in column 1 of item 1 of the table in subsection 25-5(5) of that Act.
registered emissions unit
has the meaning given by section
420-10
.
registered health promotion charity
means an institution that is:
(a) a *registered charity; and
(b) registered under the Australian Charities and Not-for-profits Commission Act 2012 as the subtype of entity mentioned in column 2 of item 13 of the table in subsection 25-5(5) of that Act.
registered organisation
(Repealed by No 101 of 2004)
registered public benevolent institution
means an institution that is:
(a) a *registered charity; and
(b) registered under the Australian Charities and Not-for-profits Commission Act 2012 as the subtype of entity mentioned in column 2 of item 14 of the table in subsection 25-5(5) of that Act.
registered scheme
has the same meaning as in the
Corporations Act 2001
.
registered tax agent
hasthe meaning given by subsection
90-1(1)
of the
Tax Agent Services Act 2009
.
registered tax agent, BAS agent or tax (financial) adviser
(Repealed by No 69 of 2023)
registered tax agent or BAS agent
(Repealed by No 120 of 2013)
[ CCH Note: Definition of " Registrar " will be inserted by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 1384, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 30-5(4AA) . The definition will read:
]Registrar
has the same meaning as in the A New Tax System (Australian Business Number) Act 1999 .
registration
(Repealed by No 97 of 2008)
registration requirements of an AFOF
has the meaning given by subsection
9-5(1)
of the
Venture Capital Act 2002
.
registration requirements of an ESVCLP
has the meaning given by subsection
9-3(1)
of the
Venture Capital Act 2002
.
registration requirements of a VCLP
has the meaning given by subsection
9-1(1)
of the
Venture Capital Act 2002
.
regulated superannuation fund
has the same meaning as in the
Superannuation Industry (Supervision) Act 1993
.
rehabilitation
(Repealed by No 77 of 2001)
rehabilitation tax offset
(Repealed by No 96 of 2014)
related
(Repealed by No 77 of 2001)
related business
(Repealed by No 165 of 1999)
related entity
has the meaning given by subsections
26-35(2)
and
(3)
.
related facility
(Repealed by No 41 of 2011)
related scheme
has the meaning given by section
974-155
.
related spousal interest
has the meaning given by subsection
292-102(4).
(a) the person ' s *spouse; or
(b) the *parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendent or *adopted child of that person, or of that person ' s spouse; or
(c) the spouse of a person referred to in paragraph (b).
Note:
Section 960-255 may be relevant to determining relationships for the purposes of paragraph (b) of the definition of relative .
release entitlement
has the meaning given by section
135-10
in Schedule
1
to the
Taxation Administration Act 1953
.
relevant interest
has the same meaning as in the
Corporations Act 2001
.
(a) a minister of religion; or
(b) a student at an institution who is undertaking a course of instruction in the duties of a minister of religion; or
(c) a full-time member of a religious order; or
(d) a student at a college conducted solely for training persons to become members of religious orders.
remaining effective life
of a *depreciating asset:
(a) has the meaning given by section 40-75 ; and
(b) if the asset is a vessel to which subsection 40-103(2) applies - includes the meaning given by that subsection.
rent from land investment
means rent that is derived or received from investments in
Division 6C land
.
replace
(Repealed by No 77 of 2001)
replacement asset period
has the meaning given by section
104-190
.
replacement-asset roll-over
: a
replacement-asset roll-over
allows you to defer the making of a *capital gain or a *capital loss from one *CGT event until a later CGT event happens where your ownership of one CGT asset ends and you *acquire another one. The
replacement-asset roll-overs
are listed in section
112-115
.
reportable employer superannuation contribution
has the meaning given by section
16-182
in Schedule
1
to the
Taxation Administration Act 1953
.
reportable fringe benefits amount
for an income year in respect of an employee
'
s employment by an employer has the same meaning as in the
Fringe Benefits Tax Assessment Act 1986
(as it applies of its own force or because of the
Fringe Benefits Tax (Application to the Commonwealth) Act 1986
).
reportable fringe benefits total
has the same meaning as in the
Fringe Benefits Tax Assessment Act 1986
.
reportable superannuation contributions
, for an individual and an income year, means the sum of:
(a) the individual ' s *reportable employer superannuation contributions (if any) for the income year; and
(b) the individual ' s deductions (if any) under Subdivision 290-C for the income year;
reduced (but not below zero) by the amount of any * excess concessional contributions the individual has for the *financial year corresponding to the income year.
representative
of an *incapacitated entity has the meaning given by section
195-1
of the *GST Act.
representative member
for a *GST group has the meaning given by section
195-1
of the *GST Act.
required to be registered
has the meaning given by the *GST Act.
resale royalty
means resale royalty under the
Resale Royalty Right for Visual Artists Act 2009
.
resale royalty collecting society
means the collecting society, within the meaning given by the
Resale Royalty Right for Visual Artists Act 2009
.
resale royalty right
has the meaning given by the
Resale Royalty Right for Visual Artists Act 2009
.
research and development activities
(Repealed by No 93 of 2011)
residence article
has the meaning given by subsection
815-120(6)
.
(a) for an entity making a *distribution - has the meaning given by section 202-20 (as affected by section 220-100 , if relevant); and
(b) for an income year that is one in which, or in relation to which, an event specified in a table in one of the following sections occurs:
(i) section 205-15 (general table of *franking credits);
(ii) section 205-30 (general table of *franking debits);
(iii) section 208-115 (table of *exempting credits);
(iv) section 208-120 (table of *exempting debits);
(v) section 208-130 (table of franking credits that arise because of an entity ' s status as a * former exempting entity or *exempting entity);
or an income year that is described in section 205-70 or 220-205 - has the meaning given by section 205-25 ; and
(vi) section 208-145 (table of franking debits that arise because of an entity ' s status as a former exempting entity or exempting entity);
(c) for an entity receiving a distribution - has the meaning given by section 207-75 ; and
(d) for the purposes of determining whether an entity is an exempt institution that is eligible for a refund at the time a *franked distribution is made - has the meaning given by section 207-117 .
residential care
has the same meaning as in the
Aged Care Act 1997
.
residential dwelling asset
has the meaning given by section
12-452
in Schedule
1
to the
Taxation Administration Act 1953
.
residential premises
has the same meaning as in the *GST Act.
resident investment vehicle
has the meaning given by section
118-510
.
resident TC group
(Repealed by No 101 of 2006)
resident trust for CGT purposes
: a trust is a
resident trust for CGT purposes
for an income year if, at any time during the income year:
(a) for a trust that is not a unit trust, a trustee is an Australian resident or the central management and control of the trust is in Australia; or
(b) for a unit trust, one of the requirements in column 2 and one of the requirements in column 3 of this table are satisfied.
| Requirements for unit trust | ||
| Item | One of these requirements is satisfied | And also one of these |
| 1 | Any property of the trust is situated in Australia | The central management and control of the trust is in Australia |
| 2 | The trust carries on a *business in Australia | Australian residents held more than 50% of the beneficial interests in the income or property of the trust |
resident unit trust
has the meaning given by section
102Q
of the
Income Tax Assessment Act 1936
.
residual unrealised net loss
for a *changeover time has the meaning given by section
165-115BB
.
residual value
(Repealed by No 90 of 2002)
resource rent tax amount
(Repealed by No 96 of 2014)
resource rent tax provisions
(Repealed by No 96 of 2014)
responsible entity
, of a
*
registered scheme, has the same meaning as in the
Corporations Act 2001
.
restricted DPT evidence
has the meaning given by subsection
145-25(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
retail CCIV
has the meaning given by subsection
1222J(1)
of the
Corporations Act 2001
.
retail fuel
means taxable fuel, within the meaning of the
Fuel Tax Act 2006
, that is sold by retail.
retained cost base asset
has the meaning given by subsections
705-25(5)
,
713-515(1)
and
713-705(2)
.
retention authority
(Repealed by No 77 of 2001)
retention period
has the meaning given by sections
28-150
,
900-25
,
900-75
and
900-90
.
(a) section 307-80 sets out when a *superannuation income stream is in the retirement phase ; and
(b) a *superannuation interest is in the retirement phase at a time if it supports a superannuation income stream that is in the retirement phase at that time.
retirement phase recipient
of a *superannuation income stream has the meaning given by section
294-20
.
retirement phase superannuation income stream benefit
(or
RP superannuation income stream benefit
) has the meaning given by section
307-75
.
retirement village
has the same meaning as in the
*
GST Act.
retirement village residence contract
has the meaning given by paragraph
230-475(4)(a)
.
retirement village services contract
has the meaning given by paragraph
230-475(4)(b)
.
return
on a *debt interest or *equity interest does not include a return of an amount invested in the interest.
returning New Zealand-sourced amount
has the meaning given by the regulations mentioned in section
312-5
(about trans-Tasman portability of retirement savings).
revenue asset
has the meaning given by section
977-50
.
reverse hybrid
has the meaning given by section
832-410
.
reverse hybrid mismatch
has the meaning given by section
832-395
.
reviewable fuel tax decision
has the meaning given by subsection
112-50(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
reviewable GST decision
has the meaning given by subsection
110-50(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
reviewable GST transitional decision
has the meaning given by subsection
110-50(3)
in Schedule
1
to the
Taxation Administration Act 1953
.
reviewable indirect tax decision
(Repealed by No 39 of 2012)
reviewable wine tax decision
has the meaning given by subsection
111-50(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
revive
: a
*
170-D deferred loss
revives
as mentioned in section
715-310
.
right to future income
has the meaning given by subsection
701-63(5)
.
right to use
includes the right to possess.
(a) the risk component of a premium for a * life insurance policy has the meaning given by subsection 26-85(2) ; and
(b) the risk component of a claim paid under a life insurance policy has the meaning given by section 320-80 .
risk-weighted assets
, of an entity and at a particular time, means the sum of the entity
'
s risk exposures that the entity has at that time, as is determined in accordance with:
(a) if the entity is an *Australian entity that is not a *foreign controlled Australian entity - the *prudential standards; or
(b) in any other case - either of the following:
(i) the prudential standards;
(ii) the prudential standards determined by the prudential regulator in the country of which the entity, or the *foreign bank that has *TC control interests of at least 40% in the entity, is a resident.
roll-over cost
has the meaning given by subsection
328-455(2)
.
roll-over event
(Repealed by No 77 of 2001)
roll-over superannuation benefit
has the meaning given by section
306-10
.
rounding adjustment deficit
has the meaning given by section
276-310
.
rounding adjustment surplus
has the meaning given by section
276-315
.
rounding amount
has the meaning given by section
960-285
.
royalty
has the meaning given by subsection
6(1)
of the
Income Tax Assessment Act 1936
.
RSA
has the meaning given by the
Retirement Savings Accounts Act 1997
.
RSA component
has the meaning given by section
295-555
.
RSA payment
has the meaning given by section
307-5
.
RSA provider
has the same meaning as in the
Retirement Savings Accounts Act 1997
.
rural land irrigation water provider
has the meaning given by section
40-630
.
safeguard mechanism credit unit
has the same meaning as in the
National Greenhouse and Energy Reporting Act 2007
.
(a) for an * outward investing entity (ADI) - has the meaning given by section 820-310 ; and
(b) for an * inward investing entity (ADI) - has the meaning given by section 820-405 or 820-615 .
(c) (Repealed by No 101 of 2006)
(a) - (b) (Repealed by No 23 of 2024)
(d) for an * inward investment vehicle (financial) - has the meaning given by section 820-200 ; and
(e) (Repealed by No 23 of 2024)
(f) for an * inward investor (financial) - has the meaning given by section 820-210 .
same-asset roll-over
: a
same asset roll-over
allows you to disregard a
*
capital gain or
*
capital loss you make from:
(a) * disposing of a * CGT asset to another entity; or
(b) entering into an agreement with another entity that constitutes CGT event B1; or
(c) creating a CGT asset in another entity.
The same-asset roll-overs are listed in section 112-150 .
same business test
(Repealed by No 7 of 2019)
same business test period
(Repealed by No 7 of 2019)
savings and investment income
(Repealed by No 60 of1999)
(a) any * arrangement; or
(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.
Note:
The Commissioner may determine that, for the purposes of the debt and equity interest rules in Division 974 , what would otherwise be a single scheme is to be treated as 2 or more separate schemes, and that the schemes are not related: see section 974-150 .
scheme benefit
has the meaning given by section
284-150
in Schedule
1
to the
Taxation Administration Act 1953
.
scheme for a disposition
, in relation to *membership interests or an *interest in membership interests, has the same meaning as in section
177EA
of the
Income Tax Assessment Act 1936
.
scheme period
for a
*
direct value shift has the meaning given by section
725-55
.
scheme shortfall amount
has the meaning given by section
284-150
in Schedule
1
to the
Taxation Administration Act 1953
.
scholarship plan
means a
*
life insurance policy that:
(a) is issued by a * friendly society for the sole purpose of providing benefits to help in the education of nominated beneficiaries; and
(b) is not being used, and has never been used, as security for borrowing or raising money; and
(c) if it is issued on or after 1 January 2003 - contains a provision prohibiting use of the policy as security for borrowing or raising money.
Seasonal Labour Mobility Program withholding tax
(Repealed by No 75 of 2022)
secondary course
has the same meaning as in the *GST Act.
secondary equity interest
has the meaning given by section
727-520
.
secondary interest
has the meaning given by section
727-520
.
secondary loan interest
has the meaning given by section
727-520
.
Second Commissioner
means a Second Commissioner of Taxation.
second continuity period
has the meaning given by section
165-120
.
section 124ZZB SME assessable income
for a
*
PDF for an income year is the assessable income allocated to the PDF
'
s SME assessable income for the income year under section
124ZZB
of the
Income Tax Assessment Act 1936
.
securities dealer
means a person who, for the purposes of the
Corporations Act 2001
or for the purposes of a law of a State or Territory that corresponds to that Act, deals in securities.
securitisation vehicle
has the meaning given by section
820-942
.
securitised asset
has the meaning given by section
820-942
.
segregated current pension assets
has the meaning given by section
295-385
.
segregated exempt assets
of a
*
life insurance company means assets from time to time segregated by the company under Subdivision
320-H
, whether segregated at the time of the initial segregation or included at a later time.
segregated non-current assets
has the meaning given by section
295-395
.
self-assessed clearance declaration advice
has the meaning given by the
Customs Act 1901
.
self assessment
means an assessment:
(a) for the making of which the Commissioner wholly accepts statements of the taxpayer; or
(b) that, under section 166A of the Income Tax Assessment Act 1936 or a provision of another law, is taken to have been made by the Commissioner.
self-assessment entity
means a full self-assessment taxpayer (within the meaning of subsection
6(1)
of the
Income Tax Assessment Act 1936
).
self managed superannuation fund
has the same meaning as in the
Superannuation Industry (Supervision) Act 1993
.
seminar
has the meaning given by subsection
32-65(1)
.
Senior Executive Service office
means a position occupied by an SES employee or acting SES employee.
serious offence
has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
service period
has the meaning given by section
307-400
.
SGIO
(Repealed by No 89 of 2000)
(a) in a company means a share in the capital of the company, and includes stock; and
(aa) of a *capital gain has the meaning given by section 115-227 ; and
(b) of an *exempting credit has the meaning given by section 208-180 ; and
(c) of a *franked distribution has the meaning given by section 207-55 ; and
(d) of a *franking credit has the meaning given by section 207-57 ; and
(e) of * NRAS rent has the meaning given by section 380-30 .
share capital account
has the meaning given by section
975-300
.
shareholders
'
ratio
for an income year of a
*
life insurance company has the meaning given by section
219-50
.
shareholders
'
share
of the *income tax liability of a
*
life insurance company for an income year has the meaning given by section
219-50
.
shareholding interest
has the meaning given by section
175-95
.
share of the PHII benefit
(short for
share of the private health insurance incentive benefit
) has the meaning given by the
Private Health Insurance Act 2007
.
share value shift
(Repealed by No 90 of 2002)
shift proceeds
has the meaning given by sections
140-55
and
140-90
.
shipping activities
has the meaning given by section
51-105
.
shipping cargo
has the same meaning as in the
Shipping Reform (Tax Incentives) Act 2012
.
shipping exempt income certificate
has the same meaning as in the
Shipping Reform (Tax Incentives) Act 2012
.
shipping passenger
has the same meaning as in the
Shipping Reform (Tax Incentives) Act 2012
.
shortfall amount
has the meaning given by section
284-80
in Schedule
1
to the
Taxation Administration Act 1953
.
shortfall interest charge
means the charge worked out under Division
280
in Schedule
1
to the
Taxation Administration Act 1953
.
short-term hire agreement
(Repealed by No 97 of 2008)
short-term hire agreement
: a
short-term hire agreement
is an agreement for the intermittent hire of an asset on an hourly, daily, weekly or monthly basis. However, an agreement for the hire of an asset is not a
short-term hire agreement
if, having regard to any other agreements for the hire of the same asset to the same entity or an
*
associate of that entity, there is a substantial continuity of hiring so that the agreements together are for longer than a short-term basis.
sickness policy
means a
*
life insurance policy issued by a
*
friendly society for the sole purpose of providing:
(a) benefits in respect of a sickness of the insured person; or
(b) benefits covered by paragraph (a) and benefits to pay for the funeral of the insured person.
significant global entity
has the meaning given by section
960-555
.
significant individual
has the meaning given by section
152-55
.
significant stake
has the meaning given by sections
124-783
and
124-783A
.
significant stakeholder
has the meaning given by section
124-783
.
single-rate trustee
has the meaning given by section
45-450
in Schedule
1
to the
Taxation Administration Act 1953
.
SIS dependant
means a dependant within the meaning of the
Superannuation Industry (Supervision) Act 1993
.
small business CGT affiliate
(Repealed by
No 80 of 2007
)
small business entity
has the meaning given by section
328-110
.
small business entity turnover
(Repealed by No 23 of 2012)
small business participation percentage
has the meaning given by section
152-65
.
small business taxpayer
(Repealed by
No 80 of 2007
)
small superannuation account
means an account within the meaning of the
Small Superannuation Accounts Act 1995
.
small superannuation account payment
has the meaning given by section
307-5
.
small superannuation fund
means a
*
complying superannuation fund with no more than 6 members.
small withholder
has the meaning given by section
16-105
in Schedule
1
to the
Taxation Administration Act 1953
.
SME income component
has the same meaning as in section
124ZU
of the
Income Tax Assessment Act 1936
.
SME investment
has the meaning given by section
124ZW
of the
Income Tax Assessment Act 1936
.
software
(Repealed by No 77 of 2001)
software pool
(Repealed by No 77 of 2001)
Solvency Standard
(Repealed by No 154 of 2007)
sort
of loss has the meaning given by section
701-1
.
sovereign entity
has the meaning given by section
880-15
.
sovereign entity group
has the meaning given by section
880-20
.
special accrual amount
means an amount that is included in assessable income, or an amount that can be deducted from assessable income, under any of the following:
(a) Division 230 (about taxation of financial arrangements), other than Subdivision 230-B ;
(b) Subdivision 230-A if:
(i) the accruals method provided for in Subdivision 230-B is applied to take account of the gain or loss concerned; and
(ii) all the *financial benefits provided and received under the *financial arrangement concerned are denominated in a particular *foreign currency;
(c) Division 240 (about arrangements treated as a sale and loan);
(d) Division 242 (about luxury car leases);
(da) Subdivision 250-E of this Act if all the financial benefits provided and received under the financial arrangement concerned are denominated in a particular foreign currency;
(e) Division 16D of Part III of the Income Tax Assessment Act 1936 (about certain arrangements relating to the use of property);
(f) Division 16E of Part III of the Income Tax Assessment Act 1936 (about accruals assessability in respect of certain security payments).
(a) a * mutual affiliate company; or
(b) a * mutual insurance company; or
(c) a trade union registered under an * Australian law; or
(d) a * sporting club; or
(e) a company that is prescribed by the regulations.
special conversion event
, in relation to a
*
potential MEC group, has the meaning given by section
719-40
.
special disability trust
means:
(a) a special disability trust within the meaning of the Social Security Act 1991 ; or
(b) a special disability trust within the meaning of the Veterans ' Entitlements Act 1986 .
specialist credit card institution
has the meaning given by section
special professional
has the meaning given by subsection
405-25(1)
.
special value
, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream, has the meaning given by section
294-135
.
specifically entitled
:
(a)
specifically entitled
to a *capital gain has the meaning given by section
115-228
; and
Note:
A trustee of a trust estate that makes a choice under section 115-230 is taken to be specifically entitled to a capital gain.
(b) specifically entitled to a *franked distribution has the meaning given by section 207-58 .
specific deduction
has the meaning given by section
8-5.
specified management fees
(Repealed by No 101 of 2006)
specified roll-over amount
of a *life insurance company means so much of an amount paid to the company as constitutes the *element untaxed in the fund of a *superannuation benefit that is a *roll-over superannuation benefit because of subparagraph
306-10(d)(ii)
.
specified roll-over component
(Repealed by No 83 of 2003)
spectrum
has the meaning given by section 5 of the
Radiocommunications Act 1992
.
spectrum licence
has the meaning given by section 5 of the
Radiocommunications Act 1992
.
split percentage
(Repealed by No 96 of 2014)
splittable payment
means a splittable payment within the meaning of Part
VIIIB
or
VIIIC
of the
Family Law Act 1975
.
SPOR taxpayer
(Repealed by No 161 of 2005)
sporting club
means a society, association or club that:
(a) is established for the encouragement of sport or a game; and
(b) is not carried on for profit to its members.
sporting competition
has the meaning given by subsection
405-25(7)
.
sportsperson
has the meaning given by subsection
405-25(6)
.
spouse
of an individual includes:
(a) another individual (whether of the same sex or a different sex) with whom the individual is in a relationship that is registered under a *State law or *Territory law prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; and
(b) another individual who, although not legally married to the individual, lives with the individual on a genuine domestic basis in a relationship as a couple.
spread entity
,
in relation to a *consolidated group or *MEC group, means a *member of the group that is not a *stick entity in relation to the group.
spreading period
for an amount has the meaning given by sections
716-15
,
716-25
,
716-70
and
716-100
.
Note:
Those sections deal with assessable income and deductions spread over several periods of membership or non-membership of a consolidated group or MEC group.
SRWUIP expenditure
has the meaning given by subsections
26-100(2)
and
(3)
.
SRWUIP payment
has the meaning given by subsection
59-67(2)
.
SRWUIP program
has the meaning given by subsection
59-67(1)
.
stake interest
has the meaning given by subsection
124-783A(3)
.
stake option
has the meaning given by subsection
124-783A(3)
.
standard component
has the meaning given by section
295-555
.
standard corporate tax rate
(Repealed by No 41 of 2017)
(a) in relation to a *cross staple arrangement - has the meaning given by section 12-436 in Schedule 1 to the Taxation Administration Act 1953 ; or
(b) otherwise - has the meaning given by section 124-1045 .
starting base asset
(Repealed by No 96 of 2014)
starting base return
(Repealed by No 96 of 2014)
starting day
has the meaning given by section
149-60
.
starting instalment quarter
has the meaning given by subsection
45-125(2)
in Schedule
1
to the
Taxation Administration Act 1953
.
start time
of a *depreciating asset has the meaning given by section
40-60
.
State insurer
means a body that carries on State insurance (within the meaning of paragraph 51(xiv) of the Constitution).
State law
means a law of a State.
statement worldwide assets
of an entity for a period has the meaning given by subsection
820-933(3)
.
statement worldwide debt
of an entity for a period has the meaning given by subsection
820-933(1)
.
statement worldwide equity
of an entity for a period has the meaning given by subsection
820-933(2)
.
statutory accounting period
(Repealed by
No 4 of 2007
)
statutory accounting period
has the meaning given by Part
X
of the
Income Tax Assessment Act 1936
.
statutory demand
has the same meaning as in the
Corporations Act 2001
.
statutory income
has the meaning given by section
6-10
.
statutory licence
has the meaning given by section
124-140
.
stick entity
:
(a)
in relation to a *consolidated group
-
means a *member of the group that is:
(i) the *head company of the group; or
(ii) a chosen transitional entity (within the meaning of Division 701 of the Income Tax (Transitional Provisions) Act 1997 ); or
(iii) a transitional foreign-held subsidiary (within the meaning of Division 701C of the Income Tax (Transitional Provisions) Act 1997 ); or
(b) in relation to a *MEC group - means a member of the group that is:
(i) the head company of the group; or
(ii) a chosen transitional entity (within the meaning of Division 701 of the Income Tax (Transitional Provisions) Act 1997 ); or
(iii) a transitional foreign-held subsidiary (within the meaning of Division 701C of the Income Tax (Transitional Provisions) Act 1997 ); or
(iv) an *eligible tier-1 company.
stratum unit
has the meaning given by section
124-190
.
structured arrangement
has the meaning given by section
832-210
.
structured order
has the meaning given by section
54-10
.
structured settlement
has the meaning given by section
54-10
.
structured settlement contribution
has the meaning given by section
294-80
.
STS affiliate
(Repealed by
No 80 of 2007
)
STS annual turnover
(Repealed by
No 80 of 2007
)
STS average turnover
(Repealed by
No 80 of 2007
)
STS group turnover
(Repealed by
No 80 of 2007
)
STS taxpayer
(Repealed by
No 80 of 2007
)
Student Assistance Minister
means the Minister administering the
Student Assistance Act 1973
.
Student Assistance Secretary
means the Secretary of the Department administered by the *Student Assistance Minister.
sub-fund
, of a *CCIV, has the meaning given by subsection
1222Q(1)
of the
Corporations Act 2001
.
Subdivision 230-G assessable gain
from a *financial arrangement means an amount that is taken, as a balancing adjustment under Subdivision
230-G
, to be a gain you make from the arrangement for the purposes of Division
230
.
Subdivision 230-G loss
from a *financial arrangement means an amount that is taken, as a balancing adjustment under Subdivision
230-G
, to be a loss you make from the arrangement for the purposes of Division
230
.
subject to Australian income tax
has the meaning given by section
832-125
.
subject to deemed loan treatment
, in relation to a
*
financial benefit, has the meaning given by section
250-160
.
subject to foreign income tax
has the meaning given by section
832-130
.
subject to foreign tax
has the meaning given to the expression
"
subject to tax
"
by Part
X
of the
Income Tax Assessment Act 1936
.
subject to tax
(Repealed by
No 79 of 2010
)
subordinated debt interest
means a
*
debt interest issued to:
(a) an unsecured creditor; or
(b) a secured creditor who, in the event of the liquidation of the entity issuing the interest, can only make a claim regarding that interest after the claims of other secured creditors regarding other debt interests issued by that entity have been met.
subsidiary
: the question whether a company is a
subsidiary
of another company is to be determined in the same way as the question whether a corporation is a subsidiary of another corporation is determined under the
Corporations Act 2001
.
Note:
The expression 100% subsidiary has the meaning given by section 975-505 .
(a) of a * consolidated group or a * consolidatable group - has the meaning given by section 703-15 ; and
(b) of a * MEC group - has the meaning given by section 719-25 .
substantial continuity of ownership
has the meaning given by section
166-145
.
substantial employer
(Repealed by No 8 of 2019)
substantial renovations
has the same meaning as in the *GST Act.
substantial shareholding
: see
part of a substantial shareholding
.
successor fund
, in relation to a transfer of a *superannuation interest of:
(a) a member of a *superannuation fund; or
(b) a depositor with an *approved deposit fund; or
(c) a holder of an *RSA;
means another superannuation fund, approved deposit fund or RSA if the following conditions are met:
(d) that other fund or RSA confers on that member, depositor or holder equivalent rights to the rights he or she had under the first-mentioned fund or RSA in respect of the interest;
(e) the conferral of these equivalent rights was agreed, before the transfer, between:
(i) the *superannuation provider of that other fund or RSA; and
(ii) the superannuation provider of the first-mentioned fund or RSA.
superannuation annuity
has the meaning given by the regulations.
superannuation annuity payment
has the meaning given by section
307-5
.
superannuation benefit
has the meaning given by section
307-5
.
Note:
Sections 307-10 and 307-15 affect the meaning of superannuation benefit .
superannuation co-contribution benefit payment
has the meaning given by section
307-5
.
superannuation death benefit
has the meaning given by section
307-5
.
superannuation fund
has the meaning given by section
10
of the
Superannuation Industry (Supervision) Act 1993
.
superannuation fund for foreign residents
has the meaning given by section
118-520
.
superannuation fund payment
has the meaning given by section
307-5
.
superannuation guarantee education direction
means a direction given under subsection
384-10(1)
in Schedule
1
to the
Taxation Administration Act 1953
.
superannuation guarantee payment
has the meaning given by section
307-5
.
superannuation guarantee shortfall
has the meaning given by section
17
of the
Superannuation Guarantee (Administration) Act 1992
.
superannuation income stream
has the meaning given by section
307-70
.
superannuation income stream benefit
has the meaning given by section
307-70
.
superannuation income stream provider
for a *superannuation income stream means:
(a) for a superannuation income stream provided by a *superannuation fund - the trustee of the fund; or
(b) for a superannuation income stream that is a pension for the purposes of the Retirement Savings Accounts Act 1997 - the *RSA provider; or
(c) for a superannuation income stream provided by an *approved deposit fund - the trustee of the fund; or
(d) for a superannuation income stream provided by a *life insurance company - the life insurance company.
superannuation interest
means:
(a) an interest in a *superannuation fund; or
(b) an interest in an *approved deposit fund; or
(c) an *RSA; or
(d) an interest in a *superannuation annuity.
Note:
The meaning of superannuation interest may be affected by regulations made for the purposes of section 307-200 .
superannuation lump sum
has the meaning given by section
307-65
.
superannuation member benefit
has the meaning given by section
307-5
.
(a) a * superannuation fund; or
(b) an * approved deposit fund; or
(c) an * RSA.
superannuation provider
, in relation to a
*
superannuation plan, means:
(a) for a * superannuation fund - the trustee of the fund; or
(b) for an * approved deposit fund - the trustee of the fund; or
(c) for an * RSA - the * RSA provider.
supplementary amount
of a payment is defined as set out in this table:
| Supplementary amount of a payment | ||
| Item | Supplementary amount of this kind of payment: | has the meaning given by: |
| 1 | Commonwealth education or training payment | section 52-140 |
| 2 | (Repealed by No 13 of 2014) | |
| 2A | Payment under the ABSTUDY scheme | section 52-132 |
| 3 | Payment made because of the Veterans ' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 | section 52-105 |
| 4 | Social security payment | section 52-15 |
| 5 | Veterans ' affairs payment | section 52-70 |
supply
has the meaning given by section
9-10
of the
*
GST Act.
supporting R
&
D activities
has the meaning given by section
355-30
.
(a) section 205-40 sets out when a *franking account is in surplus; and
(b) section 208-125 sets out when an *exempting account is in surplus; and
(c) section 210-130 sets out when a *venture capital sub-account is in surplus.
tainted
: for when a company
'
s *share capital account is
tainted
, see subsections
197-50(1)
and
(2)
.
tainting amount
has the meaning given by subsection
197-50(3)
.
takeover bid
means a takeover bid under Chapter
6
of the
Corporations Act 2001
, or under a *foreign law relating to corporate regulation.
taskforce officer
of a prescribed taskforce has the meaning given by section
355-70
in Schedule
1
to the
Taxation Administration Act 1953
.
(a) income tax imposed by the Income Tax Act 1986 , as assessed under this Act; or
(b) income tax imposed as such by any other Act, as assessed under this Act.
tax-records education direction
means a direction given under subsection
384-12(1)
in Schedule
1
to the
Taxation Administration Act 1953
.
taxable Australian property
has the meaning given by section
855-15
.
taxable Australian real property
has the meaning given by section
855-20
.
(a) the taxable component of an * employment termination payment has the meaning given by section 82-145 ; and
(b) the taxable component of a * superannuation benefit has the meaning given by section 307-120 ; and
(c) the taxable component of a * superannuation interest has the meaning given by section 307-215 .
taxable contributions
has the meaning given by section
293-20
.
taxable dealing
, in relation to *wine, has the meaning given by section
33-1
of the *Wine Tax Act.
taxable fuel
has the meaning given by section
110-5
of the
Fuel Tax Act 2006
.
taxable importation
has the meaning given by section
195-1
of the
*
GST Act.
taxable importation of a luxury car
has the meaning given by section
27-1
of the
*
Luxury Car Tax Act.
taxable income
has the meaning given by section
4-15
.
Note:
For a list of cases where taxable income is worked out in a special way, see subsection 4-15(2) .
taxable mining profit
(Repealed by No 96 of 2014)
taxable non-primary production income
has the meaning given by subsection
392-85(1)
.
taxable primary production income
has the meaning given by subsection
392-80(1)
.
taxable professional income
has the meaning given by subsection
405-45(1)
.
taxable purpose
has the meaning given by section
40-25
.
Note:
Subsection 417-30(1) provides that certain uses etc. of assets (connected with Timor Sea petroleum) are taken to be for a taxable purpose.
taxable purpose proportion
has the meaning given by section
328-205
.
taxable resource
(Repealed by No 96 of 2014)
taxable supply
(Repealed by No 41 of 2005)
taxable supply
†
has the meaning given by section
195-1
of the *GST Act.
[ † CCH Note: This second definition of " taxable supply " was inserted by No 176 of 1999, s 3 and Sch 3 item 70, despite the earlier insertion of the definition by Act No 164 of 1999, s 3 and Sch 6 item 7.]
taxable supply of a luxury car
has the meaning given by section
27-1
of the *Luxury Car Tax Act.
tax accounting period
has the meaning given by Part
X
of the
Income Tax Assessment Act 1936
.
tax advantaged business
(Repealed by No 101 of 2004)
tax advantaged insurance fund
(Repealed by No 101 of 2004)
tax affairs
means affairs relating to
*
tax.
(a) an Act of which the Commissioner has the general administration (including a part of an Act to the extent to which the Commissioner has the general administration of the Act); or
(b) legislative instruments made under such an Act (including such a part of an Act); or
(c) the Tax Agent Services Act 2009 or regulations made under that Act.
[ CCH Note: Definition of " taxation law " will be amended by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 1385, by inserting para (d), effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 30-5(4AA) . Para (d) will read:
]
; or (d) the A New Tax System (Australian Business Number) Act 1999 or regulations made under that Act.
taxation officer
has the meaning given by section
355-30
in Schedule
1
to the
Taxation Administration Act 1953
.
tax audit
means an examination by the Commissioner of an entity
'
s financial affairs for the purposes of a
*
taxation law.
tax benefit
has the meaning given by section
45-605
in Schedule
1
to the
Taxation Administration Act 1953
.
tax cost
has the meaning given by section
830-100
.
tax cost is set
has the meaning given by section
701-55
or
830-90
.
tax cost setting amount
has the meaning given by section
701-60
or
830-95
.
tax debt
has the same meaning as in section
8AAZA
of the
Taxation Administration Act 1953
.
tax detriment
has the meaning given by section
45-624
in Schedule
1
to the
Taxation Administration Act 1953
.
[ CCH Note: Section 45-624 of Schedule 1 to the Taxation Administration Act 1953 , referred to above, does not exist. The reference was probably intended to refer to s 45-625 of the Schedule.]
tax EBITDA
has the meaning given by section
820-52
.
tax-exempt bonus share
has the meaning given by subsections
204-25(4)
and
(5)
.
tax-exempt foreign resident
has the meaning given by subsection
118-420(3)
.
tax-exempt non-resident
(Repealed by No 41 of 2005)
tax exempt vendor
has the meaning given by section
58-5
.
tax exploitation scheme
has the meaning given by section
290-65
in Schedule
1
to the
Taxation Administration Act 1953
.
tax file number
means a tax file number as defined in section
202A
of the
Income Tax Assessment Act 1936
.
tax-free amount
of a payment is defined as set out in this table:
| Tax-free amount of a payment | ||
| Tax-free amount of this kind of payment: | has the meaning given by: | |
| 1 | Social security payment | sections 52-20 , 52-25 , 52-30 and 52-35 |
| 2 | Payment under the ABSTUDY scheme | sections 52-133 and 52-134 |
(a) the tax free component of an * employment termination payment has the meaning given by section 82-140 ; and
(b) the tax free component of a * superannuation benefit has the meaning given by section 307-120 ; and
(c) the tax free component of a * superannuation interest has the meaning given by section 307-210 ; and
(d) the tax free component of an *Australian-sourced amount has the meaning given by the regulations mentioned in section 312-5 (about trans-Tasman portability of retirement savings).
taxing event generating a gain
has the meaning given by sections
725-245
and
725-335
.
tax invoice
has the meaning given by section
195-1
of the *GST Act.
(a) a tax loss worked out under section 36-10 , 165-70 , 175-35 or 701-30 of this Act (including such a tax loss as increased under section 415-15 or reduced under section 418-95 ); or
Note 1:
The meaning of tax loss in section 36-10 is affected by section 268-60 in Schedule 2F to the Income Tax Assessment Act 1936 .
Note 2:
The meaning of tax loss in sections 36-10 , 165-70 , 175-35 and 701-30 is modified by section 36-55 for a corporate tax entity that has an amount of excess franking offsets.
Note 3:
A life insurance company can have a tax loss of the complying superannuation class and/or a tax loss of the ordinary class for the purposes of working out its income tax for an income year: see Subdivision 320-D .
(b) a tax loss as defined by section 36-105 (Tax losses for 1989-90 to 1996-97 income years) of the Income Tax (Transitional Provisions) Act 1997 ; or
(c) a tax loss as defined by section 36-110 (Tax losses for 1957-58 to 1988-89 income years) of the Income Tax (Transitional Provisions) Act 1997 ; or
(d) a tax loss determined under section 24 of the International Tax Agreements Act 1953 (about relief from double taxation where profits are adjusted) (including such a tax loss as increased under section 415-15 of this Act).
tax offset
has the meaning given by section
4-10
.
tax offset refund
, of yours for an income year, means a refund you can get as mentioned in item 40 of the table in subsection
63-10(1)
(refundable tax offsets) for the income year.
tax period
has the meaning given by section
195-1
of the
*
GST Act.
tax position
has the meaning given by section
45-610
in Schedule
1
to the
Taxation Administration Act 1953
.
tax preferred end user
has the meaning given by section
250-55
.
(a) an * exempt entity; or
(b) an * exempt Australian government agency; or
(c) an * associated government entity of an exempt Australian government agency; or
(d) a * prescribed excluded STB; or
(e) an * exempt foreign government agency.
tax preferred use
of an asset has the meaning given by sections
250-60(1)
and
(2)
.
tax profit on the disposal or death
has the meaning given by subsection
385-105(3)
.
tax receipt
means a receipt given to you under subsection
70-5(1)
of Schedule
1
to the
Taxation Administration Act 1953
.
tax-related liability
has the meaning given by section
255-1
in Schedule
1
to the
Taxation Administration Act 1953
.
TC control interest
has the meaning given by section
820-815
(which is affected by sections
820-820 to 820-835
).
TC control tracing interest
has the meaning given by section
820-875
.
(a) for a company - has the meaning given by section 820-855 ; and
(b) for a trust - has the meaning given by section 820-860 ; and
(c) for a partnership - has the meaning given by section 820-865 .
TC indirect control interest
has the meaning given by section
820-870
.
telecommunications site access right
means a right (except an
*
IRU) of a carrier (as defined in the
Telecommunications Act 1997
):
(a) to share a facility (as defined in section 7 of that Act); or
(b) to install such a facility at a particular location or on a particular structure; or
(c) to enter or cross premises for the purposes of installing or maintaining such a facility that is on the premises, or is at a location, or on a structure, that is accessible by way of the premises.
telephone signature
of an entity is a unique identification of the entity that can be given by telephone and that is approved by the Commissioner.
television series
(Repealed by
No 164 of 2007
)
temporary resident
: you are a
temporary resident
if:
(a) you hold a temporary visa granted under the Migration Act 1958 ; and
(b) you are not an Australian resident within the meaning of the Social Security Act 1991 ; and
(c) your * spouse is not an Australian resident within the meaning of the Social Security Act 1991 .
However, you are not a temporary resident if you have been an Australian resident (within the meaning of this Act), and any of paragraphs (a), (b) and (c) are not satisfied, at any time after the commencement of this definition.
Note:
The tests in paragraphs (b) and (c) are applied to ensure that holders of temporary visas who nonetheless have a significant connection with Australia are not treated as temporary residents for the purposes of this Act.
terminal medical condition
has themeaning given by the regulations.
terminating value
has the meaning given by sections
705-30
,
711-30
and
713-575
.
termination amount
means an amount payable because an *arrangement in relation to property ends and includes:
(a) if, at the end of the arrangement, one party to the arrangement acquires the property from the other party - an amount payable for the acquisition; or
(b) if, at the end of the arrangement, the property is lost or destroyed - any amounts paid to the owner of the property as a result of the loss or destruction; or
(c) otherwise - the *market value of the property at the end of the arrangement.
termination value
has the meaning given by section
40-300
.
Territory law
means a law of a Territory.
tertiary course
has the same meaning as in the
*
GST Act.
test day
has the meaning given by section
149-55
.
test period
has the meaning given by sections
165-165
,
166-5
,
166-20
,
166-40
and
166-80
, and affected by sections
415-35
and
415-40
.
test time
for the purposes of applying the *business continuity test has the meaning given by sections
165-13
,
165-15
,
165-35
,
165-40
,
165-45
,
165-115B
,
165-115BA
,
165-126
,
165-129
,
166-5
,
166-20
,
166-40
,
166-80
,
707-125
,
707-135
,
709-215
,
715-50
,
715-55
,
715-60
,
715-70
,
715-90
,
715-95
,
715-355
and
715-360
, and affected by sections
415-35
and
415-40
.
TFN declaration
means a declaration made for the purposes of section
202C
of the
Income Tax Assessment Act 1936
on or after 1 July 2000.
TFN withholding tax
means tax payable in accordance with section
14-55
in Schedule
1
to the
Taxation Administration Act 1953
.
Note:
The tax is imposed by the Income Tax (Deferred Interest Securities) (Tax File Number Withholding Tax) Act 1991 .
TFN withholding tax (ESS)
means tax payable in accordance with section
14-155
in Schedule
1
to the
Taxation Administration Act 1953
.
Note:
ESS is short for employee share scheme.
third party debt conditions
has the meaning given by section
820-427A
.
third party earnings limit
has the meaning given by section
820-427A
.
(a) the Income Tax Assessment Act 1936 ; and
(b) Part IVC of the Taxation Administration Act 1953 , so far as that Part relates to:
(i) this Act or the Income Tax Assessment Act 1936 ; or
(ii) Schedule 1 to the Taxation Administration Act 1953 ; and
(c) Schedule 1 to the Taxation Administration Act 1953 ;
except in Division 950 (Rules for interpreting this Act).
Note:
Subsection (2) of this section prevents definitions in the Income Tax Assessment Act 1997 from affecting the interpretation of the Income Tax Assessment Act 1936 .
tier-1 company
has the meaning given by section
719-20
.
tier 1 prudential capital deduction
, for an entity and at a particular time, means the amounts that must be deducted in the calculation of the eligible tier 1 capital (within the meaning of the
*
prudential standards) of the entity at that time in accordance with the prudential standards as in force at that time.
timber mill building
has the meaning given by section
43-72
.
timber operation
has the meaning given by section
43-72
.
Timor Sea Maritime Boundaries Treaty
means the Treaty between Australia and the Democratic Republic of Timor-Leste Establishing their Maritime Boundaries in the Timor Sea done at New York on 6 March 2018, as in force from time to time.
Note:
The Treaty could in 2019 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
top company
has the meaning given by section
719-20
.
top entity
(Repealed by No 101 of 2006)
total debt amount
has the meaning given by sections
820-100
,
820-200
and
820-210
.
total film expenditure
has the meaning given by section
376-170
.
total forestry scheme deductions
has the meaning given by subsection
394-30(3)
.
total income
(Repealed by
No 164 of 2007
)
total net forgiven amount
has the meaning given by subsection
245-105(1)
.
total net investment loss
of an individual for an income year means the sum of:
(a) the amount (if any) by which the individual ' s deductions for the income year that are attributable to *financial investments exceed the individual ' s gross income for that year from those investments; and
(b) the amount (if any) by which the individual ' s deductions for the income year that are attributable to rental property exceed the individual ' s gross income for that year from rental property.
total participation interest
has the meaning given by section
960-180
.
total release amount
, in relation to an *excess non-concessional contributions determination, has the meaning given by paragraph
97-25(1)(c)
in Schedule
1
to the
Taxation Administration Act 1953
.
total share value increase
(Repealed by No 90 of 2002)
total superannuation balance
has the meaning given by section
307-230
.
total voting percentage
in a company has the meaning given by section
768-560
.
tracing rule
means a rule in one of the following sections:
(a) section 166-225 ;
(b) section 166-230 ;
(c) section 166-240 ;
(d) section 166-245 ;
(e) section 166-255 ;
(f) section 166-260 .
trading
in
*
shares in a
*
listed public company, or in units in a unit trust, has the meaning given by section
960-220
.
trading stock
has the meaning given by section
70-10
, as modified by section
70-12
of this Act and sections
124ZO
and
124ZQ
of the
Income Tax Assessment Act 1936
.
trading stock loss
has the meaning given by subsection
165-115A(1D)
.
traditional security
has the meaning given by section
26BB
of the
Income Tax Assessment Act 1936
.
transfer balance
has the meaning given by section
294-30
.
transfer balance account
means an account that arises under section
294-15
.
transfer balance cap
has the meaning given by section
294-35
and modified by section
294-185
.
transfer balance credit
has the meaning given by section
294-25
.
transfer balance debit
has the meaning given by section
294-80
.
transferor trust
has the meaning given by section
960-75
.
transfer pricing benefit
has the meaning given by sections
815-15
,
815-120
and
815-220
.
transfer value
of an asset means the amount that could be expected to be received from the disposal of the asset in an open market after deducting any costs expected to be incurred in respect of the disposal.
transition entity
has the meaning given by section
58-5
.
transition time
has the meaning given by section
58-5
.
transition year
has the meaning given by section
58-5
.
transitioned petroleum activities
has the meaning given by section
417-10
.
transport capital expenditure
has the meaning given by section
40-865
.
Transport Department
(Repealed by No 110 of 2014)
Transport Minister
(Repealed by No 110 of 2014)
Transport Secretary
(Repealed by No 110 of 2014)
transport expense
has the meaning given by section
900-220
.
transport facility
has the meaning given by section
40-870
.
transport payment
has the meaning given by section
900-220
.
travel allowance
has the meaning given by section
900-30
.
travel allowance expense
has the meaning given by section
900-30
.
travel between workplaces
has the meaning given by section
25-100
.
travel expense
has the meaning given by section
900-95
.
treatment
(Repealed by No 77 of 2001)
trial year
has the meaning given by section
707-120
.
trust component
, of a particular character, has the meaning given by sections
276-260
.
trust component deficit
, of a particular character, has the meaning given by sections
276-320
.
(a) of a *superannuation fund, an *approved deposit fund or a *pooled superannuation trust - means:
(i) if there is a trustee (within the ordinary meaning of that expression) of the fund or trust - the trustee; or
(ii) in any other case - the person who manages the fund or trust; and
(b) otherwise - has the meaning given by subsection 6(1) of the Income Tax Assessment Act 1936 .
trust restructuring period
has the meaning given by section
124-860
.
trust share amount
has the meaning given by subsection
207-120(4)
.
trust voting interest
has the meaning given by section
124-781
.
ultimate controller
has the meaning given by section
727-350
.
ultimate holding company
of a *wholly-owned group has the meaning given by section
124-780
.
ultimate owner
has the meaning given by section
149-15
.
ultimate stake
of a particular percentage has the meaning given by sections
727-405
,
727-410
and
727-415
.
unbilled income asset
(Repealed by No 99 of 2012)
unclaimed money payment
has the meaning given by section
307-5
.
unconditionally registered
: a *VCLP, *ESVCLP or *AFOF is unconditionally registered if:
(a) its registration under the Venture Capital Act 2002 is not based, or is no longer based, on its conditional registration under section 13-5 of that Act; or
(b) it is taken to be unconditionally registered under subsection 13-10(2) of that Act.
undeducted construction expenditure
has the meaning given by section
43-235
and
43-240
.
undeducted cost
(Repealed by No 77 of 2001)
undeducted pre-existing audited book value
of a *depreciating asset has the meaning given by section
58-80
.
under
, of a particular character, has the meaning given by section
276-345
.
under-assessment
, in the context of a *franking assessment, has the meaning given by subsection
214-115(2)
.
under common ownership
: 2 companies are
under common ownership
if, and only if:
(a) they are members of the same *wholly-owned group; or
(b) after tracing the direct and indirect ownership of the *shares in each of the companies (through any interposed companies and trusts) to the individuals who ultimately hold it, that ownership is held by the same individuals in the same proportions.
In doing the tracing, ignore *shares whose *dividends can reasonably be regarded as being equivalent to the payment of interest on a loan having regard to:
(c) how the dividends are calculated; and
(d) the conditions applying to the payment of the dividends; and
(e) any other relevant matters.
unequal share structure
has the meaning given by subsection
167-10(3)
.
unexpended tax cost setting amount
(Repealed by No 99 of 2012)
unfrankable
has the meaning given by section
202-45
.
unfranked part
of a *distribution has the meaning given by section
976-5
.
uniform
has the meaning given by subsection
34-15(1)
.
unitary tax
has the meaning given by section
770-15
.
United Medical Protection Limited support payment
(Repealed by No 105 of 2019)
United Nations Convention on the Law of the Sea
means the United Nations Convention on the Law of the Sea, done at Montego Bay on 10 December 1982.
Note:
The text of the United Nations Convention on the Law of the Sea is in Australian Treaty Series 1994 No. 31 ([1994] ATS 31) and could in 2014 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
unlisted country
has the meaning given by section
320
of the
Income Tax Assessment Act 1936
.
unrecouped expenditure
(Repealed by No 77 of 2001)
unrecouped FMD deduction
(short for unrecouped farm management deposit deduction) has the meaning given by subsections
393-10(2)
,
393-16(3)
and
393-55(6)
and
(7)
.
untainting tax
has the meaning given by subsection
197-60(2)
.
untaxable Commonwealth entity
means an untaxable Commonwealth entity as defined by section
195-1
of the
*
GST Act.
untaxed plan cap amount
has the meaning given in section
307-350
.
unused allocation of exploration credits
from an income year has the meaning given by section
418-82
.
unused annual leave payment
has the meaning given by section
83-10
.
unused concessional contributions cap
has the meaning given by section
291-20
.
unused long service leave payment
has the meaning given by section
83-75
.
unused tax profit on the disposal or death
has the meaning given by subsection
385-110(3)
.
unutilised
means not
*
utilised.
up interest
has the meaning given by section
725-155
.
utilise
, a
*
tax loss, a
*
net capital loss or
*
net exempt income, has the meaning given by section
960-20
.
valuation days
, in relation to the calculation of the average value of a matter for an entity under Division
820
, means the particular days at which the value of that matter is measured under Subdivision
820-G
for the purposes of that calculation.
Valuation Standard
means any prudential standard made under section
230A
of the
Life Insurance Act 1995
that:
(a) provides for a valuation of the policy liabilities mentioned in subsection 114(2) of the Life Insurance Act 1995 ; and
(b) is in force under that Act.
valuation time
for a
*
life insurance company has the meaning given by sections
320-175
and
320-230
.
Note:
This definition is affected by section 713-525 .
(a) the value of the liabilities of a *life insurance company under the *risk components of *life insurance policies means the value worked out under section 320-85 ; and
(b) the value of an item of *trading stock has the meaning given by Subdivision 70-C ; and
(c) the value of a *registered emissions unit has the meaning given by Subdivision 420-D ; and
(d) the value of a *superannuation interest has the meaning given by subsection 307-205(1) .
value
(Repealed by No 41 of 2005)
value
†
(Repealed by No 41 of 2005)
value of the business supplies
(Repealed by No 41 of 2005)
value of the business supplies
†
(Repealed by No 41 of 2005)
variation credit component
has the meaning given by section
45-610
in Schedule
1
to the
Taxation Administration Act 1953
.
variation GIC component
has the meaning given by section
45-610
in Schedule
1
to the
Taxation Administration Act 1953
.
VBIF
(short for value of business in force) has the meaning given by section
820-310
.
VCLP
means a *venture capital limited partnership.
VCMP
means a venture capital management partnership within the meaning of subsection
94D(3)
of the
Income Tax Assessment Act 1936
.
venture capital credit
has the meaning given by section
210-105
.
venture capital debit
has the meaning given by section
210-120
.
venture capital deficit
has the meaning given by section
210-130
.
venture capital deficit tax
means tax imposed under the
New Business Tax System (Venture Capital Deficit Tax) Act 2003
.
venture capital entity
has the meaning given by section
118-515
.
venture capital equity
has the meaning given by section
118-525
.
venture capital limited partnership
has the meaning given by subsection
118-405(2)
.
Venture Capital Registration Board
(Repealed by
No 164 of 2007
)
venture capital sub-account
means a sub-account that arises under section
210-100
.
venture capital sub-account balance
has the meaning given by section
214-35
.
venture capital surplus
has the meaning given by section
210-130
.
vintage year
(Repealed by No 83 of 2014)
virtual pooled superannuation trust
(Repealed by No 45 of 2008)
virtual PST
(Repealed by No 45 of 2008)
virtual PST asset
(Repealed by No 45 of 2008)
virtual PST component
(Repealed by No 83 of 2003)
virtual PST liabilities
(Repealed by No 45 of 2008)
virtual PST life insurance policy
(Repealed by No 45 of 2008)
visiting force
has the meaning given by section 5 of the
Defence (Visiting Forces) Act 1963
.
voting share
in a company means:
(a) if the company is a body corporate - a voting share as defined by section 9 of the Corporations Act 2001 ; and
(b) otherwise - a share that would be a voting share as defined by that section if the company were a body corporate.
voting shareholding of less than 1%
(Repealed by No 147 of 2005)
voting stake
has the meaning given by section
166-235
.
Water Department
means the Department administered by the *Water Minister.
water entitlement
has the meaning given by section
124-1105
.
water facility
has the meaning given by section
40-520
.
Water Minister
means the Minister administering the
Water Act 2007
.
Water Secretary
means the Secretary of the
*
Water Department.
whole of life policy
has the meaning given by section
295-480
.
wholly-owned group
has the meaning given by section
975-500
.
wholly-owned subsidiary
of an entity has the meaning given by section
703-30
.
(a) a company, *shares in which (except shares that carry a right to a fixed rate of *dividend) are listed for quotation in the official list of an *approved stock exchange; or
(b) a company with more than 50 members, other than a company where at least one of the following conditions is met during an income year:
(i) no more than 20 persons held, or had the right to acquire or become the holders of, shares representing at least 75% of the value of the shares in the company (other than shares that only carry a right to a fixed rate of dividend);
(ii) at least 75% of the voting power in the company was capable of being exercised by no more than 20 persons;
(iii) at least 75% of the amount of any dividend paid by the company during the year was paid to no more than 20 persons;
(iv) if no dividend was paid by the company during the year - the Commissioner is of the opinion that, if a dividend had been paid by the company during the year, at least 75% of the amount of the dividend would have been paid to no more than 20 persons.
widely held entity
has the meaning given by subsection
842-230(2)
.
widely held foreign venture capital fund of funds
has the meaning given by subsection
118-420(6)
.
wine
has the meaning given by Subdivision
31-A
of the *Wine Tax Act.
wine tax
has the meaning given by section
33-1
of the *Wine Tax Act.
wine taxable dealing
(Repealed by No 70 of 2015)
Wine Tax Act
means the
A New Tax System (Wine Equalisation Tax) Act 1999
.
wine tax credit
has the meaning given by section
33-1
of the *Wine Tax Act.
wine tax law
has the meaning given by section
33-1
of the *Wine Tax Act.
WIP amount asset
has the meaning given by subsection
701-63(6)
.
withholder
means a *large withholder, a *medium withholder or a *small withholder.
withholding MIT
has the meaning given by section
12-383
in Schedule
1
to the
Taxation Administration Act 1953
.
(a) a payment from which an amount must be withheld under Division 12 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not withheld); or
(aa) a payment that arises because of the operation of section 12A-205 in that Schedule (deemed payments) in respect of which Subdivision 12A-C in that Schedule requires an amount to be paid to the Commissioner; or
(b) an *alienated personal services payment in respect of which Division 13 in that Schedule requires an amount to be paid to the Commissioner; or
(c) a *non-cash benefit, the *capital proceeds or a *taxable supply, in respect of which Division 14 in that Schedule requires an amount to be paid to the Commissioner.
Note 1:
A withholding payment that consists of a non-cash benefit is made when the benefit is provided. The amount of the withholding payment is taken to be the market value of the benefit at that time.
Note 2:
Divisions 12 , 13 and 14 in Schedule 1 to the Taxation Administration Act 1953 deal with collecting amounts on account of income tax payable by the recipient of the payment, alienated personal services payment, non-cash benefit or capital proceeds.
withholding payment
covered by a particular provision in Schedule
1
to the
Taxation Administration Act 1953
means a *withholding payment consisting of:
(a) a payment from which an amount must be withheld under that provision (even if the amount is not withheld); or
(aa) a payment that arises because of the operation of section 12A-205 in that Schedule (deemed payments) in respect of which that provision requires an amount to be paid to the Commissioner; or
(b) a *non-cash benefit provided by an entity if that provision would have required the entity to withhold an amount if, instead of providing the benefit, the entity had paid the *market value of the benefit; or
(c) a non-cash benefit provided to an entity if that provision would have required the entity to withhold an amount if the benefit had been a payment of an amount equal to the market value of the benefit; or
(d) the *capital proceeds in respect of which Subdivision 14-D in that Schedule requires an amount to be paid to the Commissioner; or
(e) the *taxable supply in respect of which Subdivision 14-E in that Schedule requires an amount to be paid to the Commissioner.
withholding tax
means income tax payable under:
(a) section 301-175 (departing Australia superannuation payments); or
(b) section 306-15 (excess untaxed roll-over amounts); or
(c) Division 840 (withholding taxes); or
(d) Subdivision 840-M of the Income Tax (Transitional Provisions) Act 1997 (managed investment trust amounts); or
(e) section 128B of the Income Tax Assessment Act 1936 (dividends, interest and royalties).
work and income support withholding payments
means work and income support related withholding payments and benefits, within the meaning given by the
Income Tax Assessment Act 1936
.
workers
'
compensation law
has the meaning given by subsection
136(1)
of the
Fringe Benefits Tax Assessment Act 1986
.
work expense
has the meaning given by section
900-30
.
work in progress amount
has the meaning given by section
25-95
.
working holiday maker
has the meaning given by subsection
3A(1)
of the
Income Tax Rates Act 1986
.
working holiday taxable income
has the meaning given by subsections
3A(2)
and
(3)
of the
Income Tax Rates Act 1986
.
worldwide capital amount
, for an *outward investing entity (ADI), has the meaning given by section
820-320
.
worldwide debt
of an entity and at a particular time has the meaning given by subsection
820-932(1)
.
worldwide equity
of an entity and at a particular time has the meaning given by subsection
820-932(2)
.
worldwide gearing debt amount
:
(a) for an *outward investing financial entity (non-ADI) - has the meaning given by sections 820-110 and 820-111 ; and
(b) (Repealed by No 23 of 2024)
(c) for an inward investment vehicle (financial) - has the meaning given by section 820-217 ; and
(d) (Repealed by No 23 of 2024)
(e) for an *inward investor (financial) - has the meaning given by section 820-219 .
written down value
of a *depreciating asset has the meaning given by section
45-40
.
years remaining
(Repealed by No 77 of 2001)
you
has the meaning given by section
4-5
.
your area
has the meaning given by sections
43-115
and
43-120
.
your construction expenditure
has the meaning given by sections
43-115
and
43-120
.
your earning activity
has the meaning given by section
40-755
.
zero-capital amount
has the meaning given by section
820-942
.
995-1(2)
So far as a provision of the Income Tax Assessment Act 1997 gives an expression a particular meaning, the provision: (a) does not also have effect for the purposes of the Income Tax Assessment Act 1936 (the 1936 Act ), except as provided in the 1936 Act; and (b) does not also have effect for the purposes of Part IVC of the Taxation Administration Act 1953 , except as provided in that Part.