Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

Division 59 - Particular amounts of non-assessable non-exempt income  

Operative provisions  

SECTION 59-65   Water infrastructure improvement payments  

59-65(1)    
A * SRWUIP payment, in respect of a * SRWUIP program, to an entity that is a participant in the program is not assessable income and is not * exempt income if:

(a) the entity has made a choice under subsection (2) for the program; and

(b) if the payment is an * indirect SRWUIP payment - the entity * derives the payment because it owns an asset (otherwise than under a * financial arrangement) to which the program relates.

Note:

One of the requirements for a SRWUIP payment is for the SRWUIP program to be on the published list of SRWUIP programs for the day the payment is made (see subsection 59-67(5) ).

59-65(2)    
An entity may make a choice for a * SRWUIP program under this subsection if, in an income year:

(a) the entity * derives a * SRWUIP payment in respect of the program but has not , in an earlier income year:

(i) derived a SRWUIP payment in respect of the program; or

(ii) incurred * SRWUIP expenditure in respect of the program; or

(b) the entity incurs SRWUIP expenditure in respect of the program but has not , in an earlier income year:

(i) derived a SRWUIP payment in respect of the program; or

(ii) incurred SRWUIP expenditure in respect of the program.

Disregard subsection 26-100(3) (about expenditure that is never SRWUIP expenditure) for the purposes of this subsection.

59-65(3)    
The choice must be:

(a) made in the * approved form; and

(b) made:

(i) unless subparagraph (ii) or (iii) applies - on or before the day the entity lodges its * income tax return for the income year; or

(ii) if the Commissioner makes an assessment of the entity ' s taxable income for the income year before the entity lodges its income tax return for the income year, and subparagraph (iii) does not apply - on or before the day the Commissioner makes that assessment; or

(iii) within such further time as the Commissioner allows.

The choice cannot be revoked.

Integrity rule

59-65(4)    
Subsection (1) does not apply if, at the time the entity * derives the * SRWUIP payment in respect of a * SRWUIP program, it is reasonable to conclude that:

(a) the entity will not incur expenditure at least equal to the payment on works required by the program; and

(b) despite not incurring such expenditure, the entity will comply with the program because an * associate of the entity will incur expenditure on those works; and

(c) the associate has not made, and will not make, a choice under subsection (2) for the program.