Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS

Division 25 - Some amounts you can deduct

Operative provisions

SECTION 25-115 Deduction for payment of rent from land investment by operating entity to asset entity in relation to approved economic infrastructure facility

View history reference

25-115(1)
An entity that is an *operating entity in relation to a *cross staple arrangement can deduct an amount, for an income year, of *rent from land investment if:

(a) another entity derives or receives the amount from the operating entity:

(i) in the income year; and

(ii) on or after 27 March 2018; and

(b) the cross staple arrangement was entered into in relation to:

(i) a facility that is covered by section 12-439 in Schedule 1 to the Taxation Administration Act 1953 at a time in the income year; or

(ii) an improvement to a facility that is covered by that section at a time in the income year; and

(c) the other entity is an *asset entity in relation to the cross staple arrangement; and

(d) apart from this subsection, the operating entity could otherwise deduct the amount under this Act; and

(e) the amount is *excepted MIT CSA income of the asset entity for the income year; and

(f) each entity that is a *stapled entity in relation to the cross staple arrangement has made a choice in accordance with subsection (3).

25-115(2)
If the *asset entity is not a *managed investment trust in relation to the income year, for the purposes of paragraph (1)(e), treat it as a managed investment trust in relation to the income year.

25-115(3)
An entity makes a choice in accordance with this subsection if:

(a) the entity makes the choice in the *approved form; and

(b) the entity makes the choice before:

(i) the start of the income year in which the asset is first put to use; or

(ii) a later time allowed by the Commissioner; and

(c) the entity gives the choice to the Commissioner within 60 days after the entity makes the choice.

25-115(4)
The choice cannot be revoked.

View history note

History

S 25-115 inserted by No 34 of 2019, s 3 and Sch 1 item 2, effective 1 July 2019. No 34 of 2019, s 3 and Sch 1 item 16 contains the following application provision:

16 Application
(1)
The amendments made by this Schedule apply to a fund payment made by a managed investment trust in relation to an income year if:

(a) the fund payment is made on or after 1 July 2019; and

(b) the income year is the 2019-20 income year or a later income year.

(2)
To avoid doubt, the amendments made by this Schedule also apply for the purposes of working out the MIT cross staple arrangement income of a managed investment trust for a previous income year as mentioned in section 12-438 in Schedule 1 to the Taxation Administration Act 1953 (as inserted by this Schedule).

(3)
Despite subitem (1):

(a) section 25-115 of the Income Tax Assessment Act 1997 , as inserted by item 2 of this Schedule, applies in relation to an amount of rent from land investment that is derived or received in relation to the 2019-20 income year or a later income year; and

(b) section 25-120 of the Income Tax Assessment Act 1997 , as inserted by item 2 of this Schedule, applies in relation to an amount of rent from land investment that is derived or received on or after 27 March 2018.

(4)
To avoid doubt, for the purposes of paragraph (3)(b), the amendments made by this Schedule also apply for the purposes of working out whether an entity can deduct an amount of rent from land investment under section 25-120 of the Income Tax Assessment Act 1997 for an income year that is before the 2019-20 income year.

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