(a) operate as from a date, whether before or after the date of the approval, specified in the instrument of approval; and
(b) be withdrawn at any time.
(8) In this section, any reference to scientific research related to a business or class of business shall be read as including a reference to:
(i) any scientific research which may lead to or facilitate an extension, or an improvement in the technical efficiency, of that business, or, as the case may be, of businesses of that class; and
(ii) any scientific research of a medical nature which is of special relation to the welfare of workers employed in that business or, as the case may be, in businesses of that class.
(9) This section does not apply in relation to payments made, or expenditure incurred, after 30 June 1995.
73AA Section 73A roll‑over relief in the case of certain CGT roll‑overs
Roll‑over relief where CGT roll‑over relief allowed
(1) This section applies to the disposal of a building, or part of a building, by a taxpayer (in this section called the transferor) to another taxpayer (in this section called the transferee) if:
(b) subject to subsection (7), deductions have been allowed or are allowable under subsection 73A(2) to the transferor in respect of the building or the part of the building; and
(c) the disposal involves a CGT event; and
(d) the conditions in an item in the table are satisfied.
CGT roll‑overs that qualify transferor for relief
Item Type of CGT roll‑over Conditions
1 Disposal of asset to wholly‑owned company There is a roll‑over under Subdivision 122‑A of the Income Tax Assessment Act 1997 for the CGT event.
2 Disposal of asset by partnership to wholly‑owned company The transferor is a partnership, the building or part is partnership property, and there is a roll‑over under Subdivision 122‑B of the Income Tax Assessment Act 1997 for the disposal by the partners of the CGT assets consisting of their interests in the building or part.
3 Marriage or relationship breakdown There is a roll‑over under Subdivision 126‑A of the Income Tax Assessment Act 1997 for the CGT event.
4 Disposal of asset to another member of the same wholly‑owned group There is a roll‑over under Subdivision 126‑B of the Income Tax Assessment Act 1997 for the CGT event.
No balancing charges
(2) Subsection 73A(4) (which deals with balancing charges) does not apply to the disposal of the building or the part of the building by the transferor.
Transferee to inherit certain characteristics from transferor
(3) Section 73A applies as if:
(a) the transferee had acquired the building or the part of the building for a consideration equal to the cost of the building or the part of the building to the transferor; and
(b) deductions were not allowable to the transferee under subsection 73A(2) in respect of:
(i) so much of the cost of the building or the part of the building to the transferor as was allowed or allowable as a deduction to the transferor under that subsection in respect of the building or the part of the building; or
(ii) if there have been 2 or more prior successive applications of this section—so much of the cost of the building or the part of the building to the transferor as was allowed or allowable as a deduction to the prior successive transferors under that subsection in respect of the building or the part of the building; and
(c) deductions were not allowable to the transferor under subsection 73A(2) in respect of the building or the part of the building for the year of income in which the disposal took place or for a subsequent year of income.
Subsection 73A(2A)—special rules
(4) If subsection 73A(2A) applies to the transferor and in relation to the building or the part of the building, that subsection applies in relation to the transferee and in relation to the building or the part of the building.
Disposal by transferee where no roll‑over relief—inheritance of deductions
(5) If:
(a) after the disposal of the building or the part of the building to the transferee, the building or the part of the building is lost or destroyed or the transferee disposes of the building or the part of the building; and
(b) in the case of a disposal by the transferee—this section does not apply to the disposal;
then, for the purposes of the application of subsection 73A(4) in relation to the loss, destruction or disposal, the total of:
(c) the deductions allowed or allowable to the transferor under subsection 73A(2) in relation to the building or the part of the building; and
(d) if there have been 2 or more prior successive applications of this section—the deductions allowed or allowable to the prior successive transferors under subsection 73A(2) in relation to the building or the part of the building;
are taken to have been deductions allowed or allowable to the transferee under subsection 73A(2) in relation to the building or the part of the building.
Meaning of cost
(6) A reference in this section to the cost of a building or of a part of a building to the transferor is a reference to expenditure of a capital nature incurred by the transferor in the construction or acquisition of the building or the part of the building, or in making any alteration or addition to the building or to the part of the building.
Second or subsequent application of section—paragraph (1)(b) does not apply
(7) If, apart from this subsection, this section has applied to the disposal of the building or the part of the building to the transferee, then, in working out whether this section applies to a subsequent disposal of the building or the part of the building by:
(a) the transferee; or
(b) one or more subsequent successive transferees;
this section has effect as if paragraph (1)(b) (which deals with deductions) had not been enacted.
78A Certain gifts not to be allowable deductions
(1) In this section:
agreement includes any agreement, arrangement or understanding, whether formal or informal or express or implied, and whether or not enforceable by legal proceedings (whether or not the agreement, arrangement or understanding was intended to be so enforceable).
associate, in relation to the donor of a gift, means:
(a) in the case of a donor being a natural person:
(i) a relative of the donor;
(ii) a partner of the donor;
(iii) if a partner of the donor is a natural person—the spouse of that partner;
(iv) a trustee of a trust estate where the donor or a person who is an associate of the donor by virtue of subparagraph (i), (ii), (iii) or (v) benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts; or
(v) a company where:
(A) the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the donor, of a person who is an associate of the donor by virtue of subparagraph (i), (ii), (iii) or (iv) or of a company that is an associate of the donor by virtue of another application of this subparagraph; or
(B) the donor is, the persons who are associates of the donor by virtue of subparagraphs (i), (ii), (iii) and (iv) are, or the donor and the persons who are associates of the donor by virtue of those paragraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the company; or
(b) in the case of a donor being a company:
(i) a partner of the donor company;
(ii) if a partner of the donor company is a natural person—the spouse of that partner;
(iii) another person where:
(A) the donor company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of that person, whether those directions, instructions or wishes are communicated directly to the donor company or its directors, or through any interposed companies; or
(B) that person is, or that person and the persons who, if that person were the donor, would be associates of that person by virtue of paragraph (a) or by virtue of another subparagraph of this paragraph are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the donor company;
(iv) a trustee of a trust estate where the donor company or a person who is an associate of the donor company by virtue of subparagraph (i), (ii), (iii), (v) or (vi) benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts;
(v) another company where:
(A) the other company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the donor company, of a person who is an associate of the donor company by virtue of subparagraph (i), (ii), (iii), (iv) or (vi) or of a company that is an associate of the donor company by virtue of another application of this subparagraph; or
(B) the donor company is, the persons who are associates of the donor company by virtue of subparagraphs (i), (ii), (iii), (iv) and (vi) are, or the donor company and the persons who are associates of the donor company by virtue of those subparagraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the other company; or
(vi) another person who, if a third person who is an associate of the donor company by virtue of subparagraph (iii) were the donor, would be an associate of that third person by virtue of paragraph (a) or by virtue of another subparagraph of this paragraph.
(2) Subject to this section, a gift of money, or of property other than money, made by a person (in this section referred to as the donor) to a fund, authority, institution or person is not an allowable deduction under Division 30 of the Income Tax Assessment Act 1997 where:
(a) by reason of any act, transaction or circumstance that has occurred, will occur, or may reasonably be expected to occur, being an act, transaction or circumstance occurring as part of, in connexion with or as a result of:
(i) the making or receipt of the gift; or
(ii) any agreement or scheme entered into in association with the making or receipt of the gift;
the amount or value of the benefit derived by the fund, authority, institution or person as a consequence of the gift is, will be, or may reasonably be expected to be, less than the amount or value at the time when the gift was made of the property comprising the gift;
(b) by reason of any act, transaction or circumstance of a kind referred to in paragraph (a), any fund, authority, institution or person other than the fund, authority, institution or person to which the gift was made, makes, becomes liable to make, or may reasonably be expected to make or to become liable to make, a payment, or transfers, becomes liable to transfer, or may reasonably be expected to transfer or to become liable to transfer, any property, to any person or incurs, becomes liable to incur, or may reasonably be expected to incur or to become liable to incur, any other detriment, disadvantage, liability or obligation;
(c) by reason of any act, transaction or circumstance of a kind referred to in paragraph (a), the donor or an associate of the donor has obtained, will obtain or may reasonably be expected to obtain any benefit, advantage, right or privilege other than the benefit of any deduction that, but for this section, would be allowable from the assessable income of the donor under Division 30 of the Income Tax Assessment Act 1997; or
(d) by reason of any agreement or scheme entered into as part of or in association with the making of the gift, any property, other than property comprising the gift, has been acquired or will be acquired, whether directly or indirectly, from the donor or an associate of the donor by that fund, authority, institution or person or by another fund, authority, institution or person.
(3) Without limiting the application of subsection (2), where the terms and conditions on which a gift of property other than money is made are such that the fund, authority, institution or person to which the gift is made does not receive immediate custody and control of the property, does not have the unconditional right to retain custody and control of the property in perpetuity to the exclusion of the donor or an associate of the donor or does not obtain an immediate, indefeasible and unencumbered legal and equitable title to the property, paragraph (2)(c) shall be deemed to apply in relation to that gift.
(4) Paragraph (2)(a) does not prevent a deduction under Division 30 of the Income Tax Assessment Act 1997 from being allowed from the assessable income of the donor where the amount or value of the benefit derived by the fund, authority, institution or person as a consequence of the gift is, will be, or may reasonably be expected to be, less than the amount or value at the time when the gift was made of the property comprising the gift by reason only that the fund, authority, institution or person has incurred, will incur, or may reasonably be expected to incur, expenses for the purpose of obtaining or soliciting the gift, being expenses that, in the opinion of the Commissioner, are reasonable in relation to the value of the gift.
(5) This section does not prevent a deduction under section 30‑15 of the Income Tax Assessment Act 1997 (because of item 4, 5 or 6 of the table in that section) from being allowed from the assessable income of the donor in respect of a gift of property other than money by reason only that the terms and conditions on which the gift was made are such, or the effect of any arrangement (within the meaning of that Act) entered into in association with the making or receipt of the gift is such, that the value of the gift may be reduced in accordance with section 30‑220 of that Act.
Commonwealth Coat of Arms of Australia
Income Tax Assessment Act 1936
No. 27, 1936
Compilation No. 190
Compilation date: 1 January 2026
Includes amendments: Act No. 9, 2025
This compilation is in 7 volumes
Volume 1: sections 1-78A
Volume 2: sections 79A-121L
Volume 3: sections 124ZM-204
Volume 4: sections 251R-468
Volume 5: Schedules
Volume 6: Endnotes 1-4
Volume 7: Endnote 5
Each volume has its own contents
About this compilation
This compilation
This is a compilation of the Income Tax Assessment Act 1936 that shows the text of the law as amended and in force on 1 January 2026 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).
Application, saving and transitional provisions
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Presentational changes
The Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part III—Liability to taxation
Division 3—Deductions
79A Rebates for residents of isolated areas
79B Rebates for members of Defence Force serving overseas
82 Double deductions
Subdivision D—Losses and outgoings incurred under certain tax avoidance schemes
82KH Interpretation
82KJ Deduction not allowable in respect of certain pre‑paid outgoings
82KK Schemes designed to postpone tax liability
82KL Tax benefit not allowable in respect of certain recouped expenditure
Subdivision H—Period of deductibility of certain advance expenditure
82KZL Interpretation
82KZLA Subdivision does not apply to financial arrangements to which Subdivision 250‑E applies
82KZLB How this Subdivision applies to deductible R&D expenditure incurred to associates in earlier income years
82KZM Expenditure by small and medium business entities and individuals incurring non‑business expenditure
82KZMA Application of section 82KZMD
82KZMD Business expenditure and non‑business expenditure by non‑individual
82KZME Expenditure under some agreements
82KZMF Proportional deduction
82KZMG Deductions for certain forestry expenditure
82KZMGA Deductions for certain forestry expenditure
82KZMGB CGT event in relation to interest in 82KZMG agreement
82KZN Transfer etc. of rights under agreement
82KZO Partnership changes where entire interest in agreement rights is not transferred