Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 243-45 Deduction for later payments in respect of debt 243-45(1)
This section applies if:
(a) an amount was included in the debtor's assessable income under section 243-40 or a deduction was reduced under section 243-55 ; and
(b) the debtor makes a payment to the creditor, after the termination of the debt arrangement, in respect of the debt (other than an amount to the extent to which it is a payment of interest, of *notional interest or in the nature of interest).
243-45(2)
This is how to work out the amount of the deduction: Working out the amount of the deduction
Step 1.
Work out the amount that would be worked out under subsection 243-35(2) if the debt were terminated immediately before the payment.
Step 2.
Work out the amount that would have been worked out under subsection 243-35(4) at that time if the payment had been taken into account.
Step 3.
The amount of the deduction is the amount (if any) by which the amount worked out under Step 2 exceeds the amount worked out under Step 1.
243-45(3)
The amount can be deducted for the income year in which the payment is made.
Limit on deductions
243-45(4)
The total amounts deducted under this section in respect of a debt, and under section 243-50 in respect of a replacement debt, cannot exceed the sum of:
(a) any amounts included in the debtor's assessable income under this Division in respect of the original debt; and
(b) any amount by which deductions in respect of the original debt were reduced under section 243-55 .
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
