Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 380 - National Rental Affordability Scheme  

Subdivision 380-A - National Rental Affordability Scheme Tax Offset  

NRAS certificates issued to partnerships and trustees

SECTION 380-25   When NRAS rent flows indirectly to or through an entity  

380-25(1)    
This section sets out the circumstances in which *NRAS rent:

(a) flows indirectly to an entity (subsection (2), (3) or (4)); or

(b) flows indirectly through an entity (subsection (5)).

Partners

380-25(2)    
*NRAS rent flows indirectly to a partner in a partnership in an income year if, and only if:

(a) during that income year, the NRAS rent is *derived by the partnership, or *flows indirectly to the partnership as a beneficiary because of a previous application of subsection (3); and

(b) the partner has an individual interest:

(i) in the partnership ' s *net income for that income year that is covered by paragraph 92(1)(a) or (b) of the Income Tax Assessment Act 1936 ; or

(ii) in a *partnership loss of the partnership for that income year that is covered by paragraph 92(2)(a) or (b) of that Act;

(whether or not that individual interest becomes assessable income in the hands of the partner); and

(c) the partner ' s *share of the NRAS rent under section 380-30 is a positive amount (whether or not the partner actually receives any of that share).

Beneficiaries

380-25(3)    
*NRAS rent flows indirectly to a beneficiary of a trust in an income year if, and only if:

(a) during that income year, the NRAS rent is *derived by the trustee of the trust, or *flows indirectly to the trustee as a partner or beneficiary because of a previous application of subsection (2) or this subsection; and

(b) the beneficiary has this amount for that income year (the share amount ):

(i) a share of the trust ' s *net income for that income year that is covered by paragraph 97(1)(a) of the Income Tax Assessment Act 1936 ; or

(ii) an individual interest in the trust ' s net income for that income year that is covered by section 98A or 100 of that Act;

(whether or not the share amount becomes assessable income in the hands of the beneficiary); and

(c) the beneficiary ' s *share of the NRAS rent under section 380-30 is a positive amount (whether or not the beneficiary actually receives any of that share).

Trustees

380-25(4)    
*NRAS rent flows indirectly to the trustee of a trust in an income year if, and only if:

(a) during that income year, the NRAS rent is *derived by the trustee, or *flows indirectly to the trustee as a partner or beneficiary because of a previous application of subsection (2) or (3); and

(b) the trustee is liable or, but for another provision in this Act, would be liable, to be assessed in respect of an amount (the share amount ) that is:

(i) a share of the trust ' s *net income for that income year under section 98 of the Income Tax Assessment Act 1936 ; or

(ii) all or a part of the trust ' s net income for that income year under section 99 or 99A of that Act;

(whether or not the share amount becomes assessable income in the hands of the trustee); and

(c) the trustee ' s *share of the NRAS rent under section 380-30 is a positive amount (whether or not the trustee actually receives any of that share).

Note:

A trustee to whom NRAS rent flows indirectly under this subsection is entitled to a tax offset under section 380-15 and the NRAS rent does not flow indirectly through the trustee to another entity.

380-25(5)    
*NRAS rent flows indirectly through an entity (the first entity ) to another entity if, and only if:

(a) the other entity is the focal entity in an item of the table in section 380-30 in relation to the NRAS rent; and

(b) that focal entity ' s *share of the NRAS rent is based on the first entity ' s share of the NRAS rent as an intermediary entity in that or another item of the table.