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Income Tax (Transitional Provisions) Act 1997
Div 34(Non‑compulsory uniforms) of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
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Division 34 (Non‑compulsory uniforms) of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(1) From 1 July 1997, anything done under or in connection with a provision of former section 51AL of the Income Tax Assessment Act 1936 has effect as if it had been done under or in connection with the corresponding provision of Division 34 of the Income Tax Assessment Act 1997.
(2) From 1 July 1997, a thing described in column 2 of an item in the table (as that thing existed at the end of 30 June 1997) has effect as if it were the thing described in column 3 of that item.
Column 2 refers to provisions of the Income Tax Assessment Act 1936. Column 3 refers to provisions of the Income Tax Assessment Act 1997.
<table cellspacing="0" cellpadding="0" style="width:366.4pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:355.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>As from 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This:</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">has effect as if it were this:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>1</span></p></td><td style="width:172.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>The Register of Approved Occupational Clothing that former subsection</span><span> </span><span>51AL(5) requires the Industry Secretary to keep</span></p></td><td style="width:142.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>The Register of Approved Occupational Clothing that section</span><span> </span><span>34</span><span>‑</span><span>45 requires the Industry Secretary to keep</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>2</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Approved occupational clothing guidelines in force under former subsection</span><span> </span><span>51AL(7)</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Approved occupational clothing guidelines made under section</span><span> </span><span>34</span><span>‑</span><span>55</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A delegation by the Industry Secretary under former subsection</span><span> </span><span>51AL(23)</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A delegation by the Industry Secretary under section</span><span> </span><span>34</span><span>‑</span><span>65</span></p></td></tr></tbody></table>
```
The rule in subsection 35‑10(2) of the Income Tax Assessment Act 1997 does not apply for an income year to a business activity if:
(b) the total of those amounts is more than or equal to the excess worked out under that subsection for the business activity for the income year.
To work out your tax loss (if any) for the 1997‑98 income year or a later income year, apply the provisions of the Income Tax Assessment Act 1997 about tax losses.
(1) If you incurred a loss for the purposes of section 79E (General domestic losses of 1989‑90 to 1996‑97 years of income) of the Income Tax Assessment Act 1936 in any of the 1989‑90 to 1996‑97 income years, the loss is your tax loss for that income year, which is called a loss year.
(2) You can deduct the tax loss in the 1997‑98 or a later income year only to the extent that it has not already been deducted.
(1) If you incurred a loss for the purposes of section 80AA (Primary production losses of pre‑1990 years of income) of the Income Tax Assessment Act 1936 in any of the 1957‑58 to 1988‑89 income years, the loss is your tax loss for that income year, which is called a loss year. The loss is also called a primary production loss.
(2) You can deduct the tax loss in the 1997‑98 or a later income year only to the extent that it has not already been deducted.
(3) You deduct your primary production losses (in the order in which you incurred them) before any other tax losses of the same or any other loss year, except film losses.
(4) A company cannot transfer any amount of a primary production loss for the 1983‑84 or an earlier income year under Subdivision 170‑A (Transfer of tax losses within wholly‑owned groups of companies) of the Income Tax Assessment Act 1997.
(5) For the purposes of determining how much (if any) of a primary production loss you can deduct in the 1997‑98 or a later income year, subsections 80AA(9), (10) and (11) of the Income Tax Assessment Act 1936 apply in the same way as they apply for the purposes they refer to.
## Division 1 Preliminary
## 1‑1 Short title 1‑1 Short title
## 1‑5 Commencement 1‑5 Commencement
## 1‑7 Administration of this Act 1‑7 Administration of this Act
> Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.
## 1‑10 Definitions and rules for interpret 1‑10 Definitions and rules for interpreting this Act
(2) Division 950 of the Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to this Act as if the provisions of this Act were provisions of that Act.
## Part 1 ‑3—Core Provisions
> Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.
(2) Division 950 of the Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to this Act as if the provisions of this Act were provisions of that Act.
The Income Tax Assessment Act 1997, as originally enacted, applies to assessments for the 1997‑98 income year and later income years.
> Note: For the application of amendments of that Act (including new provisions inserted in it), see the Acts making the amendments.
> Note: This section will also affect the income tax payable by some trustees who are taxed as if certain trust income were income of individuals. See sections 98 and 99 of the Income Tax Assessment Act 1936.
(2) Your temporary budget repair levy is worked out by reference to your taxable income for the corresponding income year using the rate or rates that apply to you.
(a) section 4‑10 of the Income Tax Assessment Act 1997 has effect as if it made you liable to pay the extra tax mentioned in subsection (1) of this section; and
(b) subsection 4‑10(3) of that Act has effect as if step 4 of the method statement in that subsection were omitted and the following were substituted:
Step 3B. Add the extra income tax you must pay as mentioned in subsection 4‑11(1) of the Income Tax (Transitional Provisions) Act 1997.
Step 4. If an amount of your tax offset for foreign income tax under Division 770 remains after applying section 63‑10, subtract the remaining amount from the result of step 3B. The result is how much income tax you owe for the financial year.
> Note: As a result, you cannot apply any tax offsets against temporary budget repair levy under Part 2‑20 of the Income Tax Assessment Act 1997 (apart from the foreign income tax offset applied under step 4 of the method statement in subsection (3)).
Subject to section 5‑15 of this Act, Division 5 of the Income Tax Assessment Act 1997, as originally enacted, applies in relation to income tax or shortfall interest charge you must pay for:
(1) A reference in an agreement to section 204 of the Income Tax Assessment Act 1936 is taken, from the commencement of this section, to be a reference to section 5‑5 of the Income Tax Assessment Act 1997, if:
(1) This section applies if, just before the commencement of this section, you were liable, under subsection 204(3) (the old provision) of the Income Tax Assessment Act 1936, to pay the general interest charge on an unpaid amount (the liability) of any tax or shortfall interest charge.
(3) From that commencement, section 5‑15 (the new provision) of the Income Tax Assessment Act 1997, as originally enacted, applies to the liability as if:
(b) so much of the charge under the old provision as remained unpaid at that time had been imposed under the new provision and remained unpaid at that time.
(1) Section 5‑15 of the Income Tax Assessment Act 1997 (General interest charge payable on unpaid income tax or shortfall interest charge), as originally enacted, applies to an amount of income tax or shortfall interest charge you must pay for a financial year, if the income tax or shortfall interest charge is due to be paid on or after the commencement of that section.
(2) For the purposes of subsection (1), it does not matter whether the financial year ended before, on or after the commencement of that section.
For the 1996‑97 income year or an earlier income year, assessable income means all the amounts that under the Income Tax Assessment Act 1936 are included in the assessable income.
For the 1996‑97 income year or an earlier income year, exempt income means income which is exempt from tax and includes income which is not assessable income.
For the 1996‑97 income year or an earlier income year, deduction means a deduction allowable under the Income Tax Assessment Act 1936.
If:
(a) a provision of the Income Tax Assessment Act 1936 allows you a deduction in respect of an amount for the 1996‑97 income year or an earlier income year; and
(b) a different provision of that Act, or a provision of the Income Tax Assessment Act 1997, allows you a deduction in respect of the same amount for the 1997‑98 income year or a later income year;
15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax
(1) Division 15 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(2) However, the sections of that Act listed in the table apply in accordance with the corresponding sections of this Act.
<table cellspacing="0" cellpadding="0" style="margin-left:56.75pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:258.65pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Application provisions for specific sections</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><br><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This section of the </span><span style="font-size:9pt; font-weight:bold; font-style:italic">Income Tax Assessment Act 1997</span><span style="font-size:9pt; font-weight:bold"> ...</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Applies as described in this section of this Act ...</span></p></td></tr></thead><tbody><tr><td style="width:24.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:106.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>10</span></p></td><td style="width:106.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>10</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>15</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>15</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>20</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>20</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>30</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>30</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>35</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>35</span></p></td></tr></tbody></table>
```
Section 15‑10 (Bounties and subsidies) of the Income Tax Assessment Act 1997 applies to a bounty or subsidy received in the 1997‑98 income year or a later income year.
Section 15‑15 (Profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 applies to a profit arising in the 1997‑98 income year or a later income year, even if the undertaking or plan was entered into, or began to be carried on or carried out, before the 1997‑98 income year.
Section 15‑20 (Royalties) of the Income Tax Assessment Act 1997 applies to an amount received as or by way of royalty in the 1997‑98 income year or a later income year.
Section 15‑30 (Insurance or indemnity for loss of assessable income) of the Income Tax Assessment Act 1997 applies to an amount received in the 1997‑98 income year or a later income year as insurance or indemnity for the loss at any time of an amount that would have been assessable income under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.
#### 15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax
Section 15‑35 (Interest on overpayments and early payments of tax) of the Income Tax Assessment Act 1997 applies to interest that is paid or applied in the 1997‑98 income year or a later income year, even if some or all of the interest became payable earlier.
Subdivision 20‑A of the Income Tax Assessment Act 1997 applies to an assessable recoupment received in the 1997‑98 income year or a later income year of a loss or outgoing whenever incurred.
20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it
Subdivision 20‑B of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
the cost of the car to the lessor for the purposes of section 20‑120 of the Income Tax Assessment Act 1997 is worked out under the depreciation provisions of the Income Tax Assessment Act 1936.
> Note 1: Section 20‑120 of the Income Tax Assessment Act 1997 is about a limit on the amount to be included in your assessable income because of your disposal of the car.
> Note 2: The depreciation provisions were in Subdivision A of Division 3 of Part III of the Income Tax Assessment Act 1936.
(2) In working out the cost of the car to the lessor, disregard any election the lessor made under former subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936 to reduce the cost of the car.
If:
the car’s termination value (in respect of the disposal by the lessor) for the purposes of section 20‑120 of the Income Tax Assessment Act 1997 is the consideration receivable by the lessor for the disposal (worked out under former section 59 of the Income Tax Assessment Act 1936).
> Note: Section 20‑120 of the Income Tax Assessment Act 1997 is about a limit on the amount to be included in your assessable income because of your disposal of the car.
#### 20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it
If:
(a) section 20‑110 or 20‑125 of the Income Tax Assessment Act 1997 includes an amount in your assessable income for the 1997‑98 income year or a later income year because of your disposal of a car; and
(b) in the 1996‑97 income year or an earlier income year (but after the lease period began) there was an earlier disposal of the car, or an interest in it, by you or another entity in a situation described in the following table;
<table cellspacing="0" cellpadding="0" style="width:366.4pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:355.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Reducing each limit on the amount to be included</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">In this situation:</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">reduce each limit by:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:265.65pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> included an amount in your assessable income in respect of such an earlier disposal by you</span></p></td><td style="width:49.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> included an amount in another entity’s assessable income in respect of such an earlier disposal by the other entity</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936 </span><span>would have included an amount in your assessable income in respect of such an earlier disposal by you but for the operation of former subsection</span><span> </span><span>26AAB(12) of that Act</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>4</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> would have included an amount in another entity’s assessable income in respect of such an earlier disposal by the other entity but for the operation of former subsection</span><span> </span><span>26AAB(12) of that Act</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former subsection</span><span> </span><span>26AAB(9) of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> reduced the amount to be included in your assessable income in respect of such an earlier disposal by you</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount of the reduction</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former subsection</span><span> </span><span>26AAB(9) of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> reduced the amount to be included in another entity’s assessable income in respect of such an earlier disposal by the other entity</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount of the reduction</span></p></td></tr></tbody></table>
```
Division 25 (Some amounts you can deduct) of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years, except as provided by this Division.
Section 25‑40 (Loss from profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 applies to a loss arising in the 1997‑98 income year or a later income year, even if the undertaking or plan was entered into, or began to be carried on or carried out, before the 1997‑98 income year.
Section 25‑45 (which is about deductions for losses by theft etc.) of the Income Tax Assessment Act 1997 applies to a loss discovered in the 1997‑98 income year or a later income year.
Section 25‑90 (which is about deductions relating to foreign exempt income) of the Income Tax Assessment Act 1997 applies to an amount incurred in an income year that begins on or after 1 July 2001.
Section 25‑65 of the Income Tax Assessment Act 1997 applies to the 2006‑07 income year and later income years, in relation to expenditure whenever incurred. In relation to expenditure incurred in the 2005‑06 income year or an earlier income year, it applies as if:
(b) an allowable deduction for the expenditure under section 74A of the Income Tax Assessment Act 1936 had been a deduction for the expenditure under section 25‑65 of the Income Tax Assessment Act 1997.
> Note: This section also has the result that, to the extent that a recoupment of the expenditure has been included in your assessable income by former subsections 74A(4) and (5) of the Income Tax Assessment Act 1936, the expenditure will be disregarded in applying the $1,000 per election deduction limit: see subsection 25‑65(2) of the Income Tax Assessment Act 1997.
Division 26 of the Income Tax Assessment Act 1997 (which prevents or limits deductions) applies to assessments for the 1997‑98 income year and later income years, except as provided by this Division.
Section 26‑30 (which denies a deduction for relative’s travel expenses) of the Income Tax Assessment Act 1997 applies to travel on or after 1 July 1997.
Division 30 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(1) This section applies to a declaration or other instrument (described in column 2 of an item in the table in this section) that is in force at the end of 30 June 1997 for the purposes of the provision of the Income Tax Assessment Act 1936 referred to in that column of the item.
(2) On and after 1 July 1997 the declaration or other instrument also has effect as if it were an approval or declaration (described in column 3 of the same item) made for the purposes of the provision of the Income Tax Assessment Act 1997 referred to in that column of the item.
Anything done on or after 1 July 1997 in relation to an approval or declaration described in column 3 of an item in the table also has effect as if it had been done in relation to the declaration or other instrument described in column 2 of that item.
<table cellspacing="0" cellpadding="0" style="width:365.7pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:354.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>On and after 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This approval, declaration or other instrument:</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">also has effect as if it were:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>1</span></p></td><td style="width:183.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>An instrument certifying an institution to be a technical and further education institution for the purposes of item</span><span> </span><span>2.1.7 of table 2 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>A declaration that the institution is a technical and further education institution for the purposes of item</span><span> </span><span>2.1.7 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>25(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument certifying that purposes of an institution covered by item</span><span> </span><span>2.1.7 of table 2 in subsection</span><span> </span><span>78(4), or of the college covered by item</span><span> </span><span>2.2.14 of that table, relate exclusively to tertiary education</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration (for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>30) that those purposes of the institution, or of the college, relate solely to tertiary education</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving an organisation, or a branch or section of an organisation, to be a marriage guidance organisation for the purposes of item</span><span> </span><span>8.1.1 of table 8 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the organisation, or branch or section of the organisation, is a marriage guidance organisation for the purposes of item</span><span> </span><span>8.1.1 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>70(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that a public fund is an eligible fund for the purposes of item</span><span> </span><span>9.1.1 of table 9 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the public fund is a relief fund for the purposes of item</span><span> </span><span>9.1.1 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>80(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving a person as a valuer under subsection</span><span> </span><span>78(18)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An approval of the person as a valuer under section</span><span> </span><span>30</span><span>‑</span><span>210</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving an organisation as an approved organisation for the purposes of subsection</span><span> </span><span>78(21)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the organisation is an approved organisation for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>85</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>7</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument certifying a country to be a developing country for the purposes of subsection</span><span> </span><span>78(21)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the country is a developing country for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>85</span></p></td></tr></tbody></table>
```
(1) On and after 1 July 1997, the register described in column 2 of an item in the table in this section (as the register existed at the end of 30 June 1997) also has effect as if it were the register described in column 3 of that item.
Column 2 refers to provisions of the Income Tax Assessment Act 1936. Column 3 refers to provisions of the Income Tax Assessment Act 1997.
(2) Anything done on or after 1 July 1997 in relation to the register described in column 3 of an item in the table also has effect as if it had been done in relation to the register described in column 2 of that item.
<table cellspacing="0" cellpadding="0" style="width:363.25pt; border-collapse:collapse"><tbody><tr><td colspan="3" style="width:352.45pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>On and after 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:20pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This register:</span></p></td><td style="width:151.55pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">also has effect as if it were:</span></p></td></tr><tr><td style="width:20pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:159.3pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of cultural organisations kept under section</span><span> </span><span>78AA</span></p></td><td style="width:151.55pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of cultural organisations kept under Subdivision</span><span> </span><span>30</span><span>‑</span><span>F</span></p></td></tr><tr><td style="width:20pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of environmental organisations kept under section</span><span> </span><span>78AB</span></p></td><td style="width:151.55pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of environmental organisations kept under Subdivision</span><span> </span><span>30</span><span>‑</span><span>E</span></p></td></tr></tbody></table>
```
(1) The authorities and institutions listed in this table are taken to have been endorsed by the Commissioner of Taxation for the purposes of item 12A.1.1 of the table in section 30‑102 of the Income Tax Assessment Act 1997 under paragraph 30‑120(a) of that Act.
| Item | Fund, authority or institution | Established under legislation of the following State or Territory |
| ---- | ---------------------------------------------------------- | ----------------------------------------------------------------- |
| 1 | State Emergency Service | New South Wales |
| 2 | Country Fire Authority | Victoria |
| 3 | Victoria State Emergency Service | Victoria |
| 4 | Queensland Fire and Rescue Service | Queensland |
| 5 | State Emergency Service | Queensland |
| 6 | Fire and Emergency Services Authority of Western Australia | Western Australia |
| 7 | State Emergency Service South Australia | South Australia |
| 8 | Tasmania Fire Service | Tasmania |
| 9 | State Emergency Service | Tasmania |
| 10 | ACT Rural Fire Service | Australian Capital Territory |
| 11 | ACT State Emergency Service | Australian Capital Territory |
(2) The fund listed in this table is taken to have been endorsed by the Commissioner of Taxation for the purposes of item 12A.1.2 of section 30‑102 of the Income Tax Assessment Act 1997 under paragraph 30‑120(b) of that Act.
(3) The funds, authorities and institutions referred to in subsections (1) and (2) are taken to have been endorsed on the day on which Schedule 7 to the Tax Laws Amendment (2010 Measures No. 4) Act 2010 commences.
Division 32 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
Division 34 (Non‑compulsory uniforms) of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(1) From 1 July 1997, anything done under or in connection with a provision of former section 51AL of the Income Tax Assessment Act 1936 has effect as if it had been done under or in connection with the corresponding provision of Division 34 of the Income Tax Assessment Act 1997.
(2) From 1 July 1997, a thing described in column 2 of an item in the table (as that thing existed at the end of 30 June 1997) has effect as if it were the thing described in column 3 of that item.
Column 2 refers to provisions of the Income Tax Assessment Act 1936. Column 3 refers to provisions of the Income Tax Assessment Act 1997.
<table cellspacing="0" cellpadding="0" style="width:366.4pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:355.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>As from 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This:</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">has effect as if it were this:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>1</span></p></td><td style="width:172.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>The Register of Approved Occupational Clothing that former subsection</span><span> </span><span>51AL(5) requires the Industry Secretary to keep</span></p></td><td style="width:142.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>The Register of Approved Occupational Clothing that section</span><span> </span><span>34</span><span>‑</span><span>45 requires the Industry Secretary to keep</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>2</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Approved occupational clothing guidelines in force under former subsection</span><span> </span><span>51AL(7)</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Approved occupational clothing guidelines made under section</span><span> </span><span>34</span><span>‑</span><span>55</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A delegation by the Industry Secretary under former subsection</span><span> </span><span>51AL(23)</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A delegation by the Industry Secretary under section</span><span> </span><span>34</span><span>‑</span><span>65</span></p></td></tr></tbody></table>
```
The rule in subsection 35‑10(2) of the Income Tax Assessment Act 1997 does not apply for an income year to a business activity if:
(b) the total of those amounts is more than or equal to the excess worked out under that subsection for the business activity for the income year.
To work out your tax loss (if any) for the 1997‑98 income year or a later income year, apply the provisions of the Income Tax Assessment Act 1997 about tax losses.
(1) If you incurred a loss for the purposes of section 79E (General domestic losses of 1989‑90 to 1996‑97 years of income) of the Income Tax Assessment Act 1936 in any of the 1989‑90 to 1996‑97 income years, the loss is your tax loss for that income year, which is called a loss year.
(2) You can deduct the tax loss in the 1997‑98 or a later income year only to the extent that it has not already been deducted.
(1) If you incurred a loss for the purposes of section 80AA (Primary production losses of pre‑1990 years of income) of the Income Tax Assessment Act 1936 in any of the 1957‑58 to 1988‑89 income years, the loss is your tax loss for that income year, which is called a loss year. The loss is also called a primary production loss.
(2) You can deduct the tax loss in the 1997‑98 or a later income year only to the extent that it has not already been deducted.
(3) You deduct your primary production losses (in the order in which you incurred them) before any other tax losses of the same or any other loss year, except film losses.
(4) A company cannot transfer any amount of a primary production loss for the 1983‑84 or an earlier income year under Subdivision 170‑A (Transfer of tax losses within wholly‑owned groups of companies) of the Income Tax Assessment Act 1997.
(5) For the purposes of determining how much (if any) of a primary production loss you can deduct in the 1997‑98 or a later income year, subsections 80AA(9), (10) and (11) of the Income Tax Assessment Act 1936 apply in the same way as they apply for the purposes they refer to.
## Division 4 How to work out the income tax payable on your taxable income
## 4‑1 Application of the Income Tax Assess 4‑1 Application of the Income Tax Assessment Act 1997
The Income Tax Assessment Act 1997, as originally enacted, applies to assessments for the 1997‑98 income year and later income years.
> Note: For the application of amendments of that Act (including new provisions inserted in it), see the Acts making the amendments.
## 4‑11 Temporary budget repair levy 4‑11 Temporary budget repair levy
> Note: This section will also affect the income tax payable by some trustees who are taxed as if certain trust income were income of individuals. See sections 98 and 99 of the Income Tax Assessment Act 1936.
(2) Your temporary budget repair levy is worked out by reference to your taxable income for the corresponding income year using the rate or rates that apply to you.
(a) section 4‑10 of the Income Tax Assessment Act 1997 has effect as if it made you liable to pay the extra tax mentioned in subsection (1) of this section; and
(b) subsection 4‑10(3) of that Act has effect as if step 4 of the method statement in that subsection were omitted and the following were substituted:
Step 3B. Add the extra income tax you must pay as mentioned in subsection 4‑11(1) of the Income Tax (Transitional Provisions) Act 1997.
Step 4. If an amount of your tax offset for foreign income tax under Division 770 remains after applying section 63‑10, subtract the remaining amount from the result of step 3B. The result is how much income tax you owe for the financial year.
> Note: As a result, you cannot apply any tax offsets against temporary budget repair levy under Part 2‑20 of the Income Tax Assessment Act 1997 (apart from the foreign income tax offset applied under step 4 of the method statement in subsection (3)).
## Division 5 How to work out when to pay your income tax
## Subdivision 5 ‑A—How to work out when to pay your income tax
## 5‑5 Application of Division 5 of the Inc 5‑5 Application of Division 5 of the Income Tax Assessment Act 1997
Subject to section 5‑15 of this Act, Division 5 of the Income Tax Assessment Act 1997, as originally enacted, applies in relation to income tax or shortfall interest charge you must pay for:
## 5‑7 References in tax sharing agreements 5‑7 References in tax sharing agreements to former section 204
(1) A reference in an agreement to section 204 of the Income Tax Assessment Act 1936 is taken, from the commencement of this section, to be a reference to section 5‑5 of the Income Tax Assessment Act 1997, if:
## 5‑10 General interest charge liabilities 5‑10 General interest charge liabilities under former subsection 204(3)
(1) This section applies if, just before the commencement of this section, you were liable, under subsection 204(3) (the old provision) of the Income Tax Assessment Act 1936, to pay the general interest charge on an unpaid amount (the liability) of any tax or shortfall interest charge.
(3) From that commencement, section 5‑15 (the new provision) of the Income Tax Assessment Act 1997, as originally enacted, applies to the liability as if:
(b) so much of the charge under the old provision as remained unpaid at that time had been imposed under the new provision and remained unpaid at that time.
## 5‑15 Application of section 5‑15 of the 5‑15 Application of section 5‑15 of the Income Tax Assessment Act 1997
(1) Section 5‑15 of the Income Tax Assessment Act 1997 (General interest charge payable on unpaid income tax or shortfall interest charge), as originally enacted, applies to an amount of income tax or shortfall interest charge you must pay for a financial year, if the income tax or shortfall interest charge is due to be paid on or after the commencement of that section.
(2) For the purposes of subsection (1), it does not matter whether the financial year ended before, on or after the commencement of that section.
## Division 6 Assessable income and exempt income
## 6‑2 Effect of this Division 6‑2 Effect of this Division
## 6‑3 Assessable income for income years b 6‑3 Assessable income for income years before 1997‑98
For the 1996‑97 income year or an earlier income year, assessable income means all the amounts that under the Income Tax Assessment Act 1936 are included in the assessable income.
## 6‑20 Exempt income for income years befo 6‑20 Exempt income for income years before 1997‑98
For the 1996‑97 income year or an earlier income year, exempt income means income which is exempt from tax and includes income which is not assessable income.
## Division 8 Deductions
## 8‑2 Effect of this Division 8‑2 Effect of this Division
## 8‑3 Deductions for income years before 1 8‑3 Deductions for income years before 1997‑98
For the 1996‑97 income year or an earlier income year, deduction means a deduction allowable under the Income Tax Assessment Act 1936.
## 8‑10 No double deductions for income yea 8‑10 No double deductions for income year before 1997‑98 and income year after 1996‑97
If:
(a) a provision of the Income Tax Assessment Act 1936 allows you a deduction in respect of an amount for the 1996‑97 income year or an earlier income year; and
(b) a different provision of that Act, or a provision of the Income Tax Assessment Act 1997, allows you a deduction in respect of the same amount for the 1997‑98 income year or a later income year;
## Part 2 ‑1—Assessable income
> Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.
(2) Division 950 of the Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to this Act as if the provisions of this Act were provisions of that Act.
The Income Tax Assessment Act 1997, as originally enacted, applies to assessments for the 1997‑98 income year and later income years.
> Note: For the application of amendments of that Act (including new provisions inserted in it), see the Acts making the amendments.
> Note: This section will also affect the income tax payable by some trustees who are taxed as if certain trust income were income of individuals. See sections 98 and 99 of the Income Tax Assessment Act 1936.
(2) Your temporary budget repair levy is worked out by reference to your taxable income for the corresponding income year using the rate or rates that apply to you.
(a) section 4‑10 of the Income Tax Assessment Act 1997 has effect as if it made you liable to pay the extra tax mentioned in subsection (1) of this section; and
(b) subsection 4‑10(3) of that Act has effect as if step 4 of the method statement in that subsection were omitted and the following were substituted:
Step 3B. Add the extra income tax you must pay as mentioned in subsection 4‑11(1) of the Income Tax (Transitional Provisions) Act 1997.
Step 4. If an amount of your tax offset for foreign income tax under Division 770 remains after applying section 63‑10, subtract the remaining amount from the result of step 3B. The result is how much income tax you owe for the financial year.
> Note: As a result, you cannot apply any tax offsets against temporary budget repair levy under Part 2‑20 of the Income Tax Assessment Act 1997 (apart from the foreign income tax offset applied under step 4 of the method statement in subsection (3)).
Subject to section 5‑15 of this Act, Division 5 of the Income Tax Assessment Act 1997, as originally enacted, applies in relation to income tax or shortfall interest charge you must pay for:
(1) A reference in an agreement to section 204 of the Income Tax Assessment Act 1936 is taken, from the commencement of this section, to be a reference to section 5‑5 of the Income Tax Assessment Act 1997, if:
(1) This section applies if, just before the commencement of this section, you were liable, under subsection 204(3) (the old provision) of the Income Tax Assessment Act 1936, to pay the general interest charge on an unpaid amount (the liability) of any tax or shortfall interest charge.
(3) From that commencement, section 5‑15 (the new provision) of the Income Tax Assessment Act 1997, as originally enacted, applies to the liability as if:
(b) so much of the charge under the old provision as remained unpaid at that time had been imposed under the new provision and remained unpaid at that time.
(1) Section 5‑15 of the Income Tax Assessment Act 1997 (General interest charge payable on unpaid income tax or shortfall interest charge), as originally enacted, applies to an amount of income tax or shortfall interest charge you must pay for a financial year, if the income tax or shortfall interest charge is due to be paid on or after the commencement of that section.
(2) For the purposes of subsection (1), it does not matter whether the financial year ended before, on or after the commencement of that section.
For the 1996‑97 income year or an earlier income year, assessable income means all the amounts that under the Income Tax Assessment Act 1936 are included in the assessable income.
For the 1996‑97 income year or an earlier income year, exempt income means income which is exempt from tax and includes income which is not assessable income.
For the 1996‑97 income year or an earlier income year, deduction means a deduction allowable under the Income Tax Assessment Act 1936.
If:
(a) a provision of the Income Tax Assessment Act 1936 allows you a deduction in respect of an amount for the 1996‑97 income year or an earlier income year; and
(b) a different provision of that Act, or a provision of the Income Tax Assessment Act 1997, allows you a deduction in respect of the same amount for the 1997‑98 income year or a later income year;
15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax
(1) Division 15 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(2) However, the sections of that Act listed in the table apply in accordance with the corresponding sections of this Act.
<table cellspacing="0" cellpadding="0" style="margin-left:56.75pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:258.65pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Application provisions for specific sections</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><br><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This section of the </span><span style="font-size:9pt; font-weight:bold; font-style:italic">Income Tax Assessment Act 1997</span><span style="font-size:9pt; font-weight:bold"> ...</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Applies as described in this section of this Act ...</span></p></td></tr></thead><tbody><tr><td style="width:24.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:106.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>10</span></p></td><td style="width:106.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>10</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>15</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>15</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>20</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>20</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>30</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>30</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>35</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>35</span></p></td></tr></tbody></table>
```
Section 15‑10 (Bounties and subsidies) of the Income Tax Assessment Act 1997 applies to a bounty or subsidy received in the 1997‑98 income year or a later income year.
Section 15‑15 (Profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 applies to a profit arising in the 1997‑98 income year or a later income year, even if the undertaking or plan was entered into, or began to be carried on or carried out, before the 1997‑98 income year.
Section 15‑20 (Royalties) of the Income Tax Assessment Act 1997 applies to an amount received as or by way of royalty in the 1997‑98 income year or a later income year.
Section 15‑30 (Insurance or indemnity for loss of assessable income) of the Income Tax Assessment Act 1997 applies to an amount received in the 1997‑98 income year or a later income year as insurance or indemnity for the loss at any time of an amount that would have been assessable income under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.
#### 15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax
Section 15‑35 (Interest on overpayments and early payments of tax) of the Income Tax Assessment Act 1997 applies to interest that is paid or applied in the 1997‑98 income year or a later income year, even if some or all of the interest became payable earlier.
Subdivision 20‑A of the Income Tax Assessment Act 1997 applies to an assessable recoupment received in the 1997‑98 income year or a later income year of a loss or outgoing whenever incurred.
20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it
Subdivision 20‑B of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
the cost of the car to the lessor for the purposes of section 20‑120 of the Income Tax Assessment Act 1997 is worked out under the depreciation provisions of the Income Tax Assessment Act 1936.
> Note 1: Section 20‑120 of the Income Tax Assessment Act 1997 is about a limit on the amount to be included in your assessable income because of your disposal of the car.
> Note 2: The depreciation provisions were in Subdivision A of Division 3 of Part III of the Income Tax Assessment Act 1936.
(2) In working out the cost of the car to the lessor, disregard any election the lessor made under former subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936 to reduce the cost of the car.
If:
the car’s termination value (in respect of the disposal by the lessor) for the purposes of section 20‑120 of the Income Tax Assessment Act 1997 is the consideration receivable by the lessor for the disposal (worked out under former section 59 of the Income Tax Assessment Act 1936).
> Note: Section 20‑120 of the Income Tax Assessment Act 1997 is about a limit on the amount to be included in your assessable income because of your disposal of the car.
#### 20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it
If:
(a) section 20‑110 or 20‑125 of the Income Tax Assessment Act 1997 includes an amount in your assessable income for the 1997‑98 income year or a later income year because of your disposal of a car; and
(b) in the 1996‑97 income year or an earlier income year (but after the lease period began) there was an earlier disposal of the car, or an interest in it, by you or another entity in a situation described in the following table;
<table cellspacing="0" cellpadding="0" style="width:366.4pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:355.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Reducing each limit on the amount to be included</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">In this situation:</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">reduce each limit by:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:265.65pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> included an amount in your assessable income in respect of such an earlier disposal by you</span></p></td><td style="width:49.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> included an amount in another entity’s assessable income in respect of such an earlier disposal by the other entity</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936 </span><span>would have included an amount in your assessable income in respect of such an earlier disposal by you but for the operation of former subsection</span><span> </span><span>26AAB(12) of that Act</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>4</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> would have included an amount in another entity’s assessable income in respect of such an earlier disposal by the other entity but for the operation of former subsection</span><span> </span><span>26AAB(12) of that Act</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former subsection</span><span> </span><span>26AAB(9) of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> reduced the amount to be included in your assessable income in respect of such an earlier disposal by you</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount of the reduction</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former subsection</span><span> </span><span>26AAB(9) of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> reduced the amount to be included in another entity’s assessable income in respect of such an earlier disposal by the other entity</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount of the reduction</span></p></td></tr></tbody></table>
```
Division 25 (Some amounts you can deduct) of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years, except as provided by this Division.
Section 25‑40 (Loss from profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 applies to a loss arising in the 1997‑98 income year or a later income year, even if the undertaking or plan was entered into, or began to be carried on or carried out, before the 1997‑98 income year.
Section 25‑45 (which is about deductions for losses by theft etc.) of the Income Tax Assessment Act 1997 applies to a loss discovered in the 1997‑98 income year or a later income year.
Section 25‑90 (which is about deductions relating to foreign exempt income) of the Income Tax Assessment Act 1997 applies to an amount incurred in an income year that begins on or after 1 July 2001.
Section 25‑65 of the Income Tax Assessment Act 1997 applies to the 2006‑07 income year and later income years, in relation to expenditure whenever incurred. In relation to expenditure incurred in the 2005‑06 income year or an earlier income year, it applies as if:
(b) an allowable deduction for the expenditure under section 74A of the Income Tax Assessment Act 1936 had been a deduction for the expenditure under section 25‑65 of the Income Tax Assessment Act 1997.
> Note: This section also has the result that, to the extent that a recoupment of the expenditure has been included in your assessable income by former subsections 74A(4) and (5) of the Income Tax Assessment Act 1936, the expenditure will be disregarded in applying the $1,000 per election deduction limit: see subsection 25‑65(2) of the Income Tax Assessment Act 1997.
Division 26 of the Income Tax Assessment Act 1997 (which prevents or limits deductions) applies to assessments for the 1997‑98 income year and later income years, except as provided by this Division.
Section 26‑30 (which denies a deduction for relative’s travel expenses) of the Income Tax Assessment Act 1997 applies to travel on or after 1 July 1997.
Division 30 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(1) This section applies to a declaration or other instrument (described in column 2 of an item in the table in this section) that is in force at the end of 30 June 1997 for the purposes of the provision of the Income Tax Assessment Act 1936 referred to in that column of the item.
(2) On and after 1 July 1997 the declaration or other instrument also has effect as if it were an approval or declaration (described in column 3 of the same item) made for the purposes of the provision of the Income Tax Assessment Act 1997 referred to in that column of the item.
Anything done on or after 1 July 1997 in relation to an approval or declaration described in column 3 of an item in the table also has effect as if it had been done in relation to the declaration or other instrument described in column 2 of that item.
<table cellspacing="0" cellpadding="0" style="width:365.7pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:354.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>On and after 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This approval, declaration or other instrument:</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">also has effect as if it were:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>1</span></p></td><td style="width:183.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>An instrument certifying an institution to be a technical and further education institution for the purposes of item</span><span> </span><span>2.1.7 of table 2 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>A declaration that the institution is a technical and further education institution for the purposes of item</span><span> </span><span>2.1.7 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>25(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument certifying that purposes of an institution covered by item</span><span> </span><span>2.1.7 of table 2 in subsection</span><span> </span><span>78(4), or of the college covered by item</span><span> </span><span>2.2.14 of that table, relate exclusively to tertiary education</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration (for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>30) that those purposes of the institution, or of the college, relate solely to tertiary education</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving an organisation, or a branch or section of an organisation, to be a marriage guidance organisation for the purposes of item</span><span> </span><span>8.1.1 of table 8 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the organisation, or branch or section of the organisation, is a marriage guidance organisation for the purposes of item</span><span> </span><span>8.1.1 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>70(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that a public fund is an eligible fund for the purposes of item</span><span> </span><span>9.1.1 of table 9 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the public fund is a relief fund for the purposes of item</span><span> </span><span>9.1.1 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>80(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving a person as a valuer under subsection</span><span> </span><span>78(18)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An approval of the person as a valuer under section</span><span> </span><span>30</span><span>‑</span><span>210</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving an organisation as an approved organisation for the purposes of subsection</span><span> </span><span>78(21)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the organisation is an approved organisation for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>85</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>7</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument certifying a country to be a developing country for the purposes of subsection</span><span> </span><span>78(21)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the country is a developing country for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>85</span></p></td></tr></tbody></table>
```
(1) On and after 1 July 1997, the register described in column 2 of an item in the table in this section (as the register existed at the end of 30 June 1997) also has effect as if it were the register described in column 3 of that item.
Column 2 refers to provisions of the Income Tax Assessment Act 1936. Column 3 refers to provisions of the Income Tax Assessment Act 1997.
(2) Anything done on or after 1 July 1997 in relation to the register described in column 3 of an item in the table also has effect as if it had been done in relation to the register described in column 2 of that item.
<table cellspacing="0" cellpadding="0" style="width:363.25pt; border-collapse:collapse"><tbody><tr><td colspan="3" style="width:352.45pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>On and after 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:20pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This register:</span></p></td><td style="width:151.55pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">also has effect as if it were:</span></p></td></tr><tr><td style="width:20pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:159.3pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of cultural organisations kept under section</span><span> </span><span>78AA</span></p></td><td style="width:151.55pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of cultural organisations kept under Subdivision</span><span> </span><span>30</span><span>‑</span><span>F</span></p></td></tr><tr><td style="width:20pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of environmental organisations kept under section</span><span> </span><span>78AB</span></p></td><td style="width:151.55pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of environmental organisations kept under Subdivision</span><span> </span><span>30</span><span>‑</span><span>E</span></p></td></tr></tbody></table>
```
(1) The authorities and institutions listed in this table are taken to have been endorsed by the Commissioner of Taxation for the purposes of item 12A.1.1 of the table in section 30‑102 of the Income Tax Assessment Act 1997 under paragraph 30‑120(a) of that Act.
| Item | Fund, authority or institution | Established under legislation of the following State or Territory |
| ---- | ---------------------------------------------------------- | ----------------------------------------------------------------- |
| 1 | State Emergency Service | New South Wales |
| 2 | Country Fire Authority | Victoria |
| 3 | Victoria State Emergency Service | Victoria |
| 4 | Queensland Fire and Rescue Service | Queensland |
| 5 | State Emergency Service | Queensland |
| 6 | Fire and Emergency Services Authority of Western Australia | Western Australia |
| 7 | State Emergency Service South Australia | South Australia |
| 8 | Tasmania Fire Service | Tasmania |
| 9 | State Emergency Service | Tasmania |
| 10 | ACT Rural Fire Service | Australian Capital Territory |
| 11 | ACT State Emergency Service | Australian Capital Territory |
(2) The fund listed in this table is taken to have been endorsed by the Commissioner of Taxation for the purposes of item 12A.1.2 of section 30‑102 of the Income Tax Assessment Act 1997 under paragraph 30‑120(b) of that Act.
(3) The funds, authorities and institutions referred to in subsections (1) and (2) are taken to have been endorsed on the day on which Schedule 7 to the Tax Laws Amendment (2010 Measures No. 4) Act 2010 commences.
Division 32 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
Division 34 (Non‑compulsory uniforms) of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(1) From 1 July 1997, anything done under or in connection with a provision of former section 51AL of the Income Tax Assessment Act 1936 has effect as if it had been done under or in connection with the corresponding provision of Division 34 of the Income Tax Assessment Act 1997.
(2) From 1 July 1997, a thing described in column 2 of an item in the table (as that thing existed at the end of 30 June 1997) has effect as if it were the thing described in column 3 of that item.
Column 2 refers to provisions of the Income Tax Assessment Act 1936. Column 3 refers to provisions of the Income Tax Assessment Act 1997.
<table cellspacing="0" cellpadding="0" style="width:366.4pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:355.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>As from 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This:</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">has effect as if it were this:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>1</span></p></td><td style="width:172.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>The Register of Approved Occupational Clothing that former subsection</span><span> </span><span>51AL(5) requires the Industry Secretary to keep</span></p></td><td style="width:142.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>The Register of Approved Occupational Clothing that section</span><span> </span><span>34</span><span>‑</span><span>45 requires the Industry Secretary to keep</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>2</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Approved occupational clothing guidelines in force under former subsection</span><span> </span><span>51AL(7)</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Approved occupational clothing guidelines made under section</span><span> </span><span>34</span><span>‑</span><span>55</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A delegation by the Industry Secretary under former subsection</span><span> </span><span>51AL(23)</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A delegation by the Industry Secretary under section</span><span> </span><span>34</span><span>‑</span><span>65</span></p></td></tr></tbody></table>
```
The rule in subsection 35‑10(2) of the Income Tax Assessment Act 1997 does not apply for an income year to a business activity if:
(b) the total of those amounts is more than or equal to the excess worked out under that subsection for the business activity for the income year.
To work out your tax loss (if any) for the 1997‑98 income year or a later income year, apply the provisions of the Income Tax Assessment Act 1997 about tax losses.
(1) If you incurred a loss for the purposes of section 79E (General domestic losses of 1989‑90 to 1996‑97 years of income) of the Income Tax Assessment Act 1936 in any of the 1989‑90 to 1996‑97 income years, the loss is your tax loss for that income year, which is called a loss year.
(2) You can deduct the tax loss in the 1997‑98 or a later income year only to the extent that it has not already been deducted.
(1) If you incurred a loss for the purposes of section 80AA (Primary production losses of pre‑1990 years of income) of the Income Tax Assessment Act 1936 in any of the 1957‑58 to 1988‑89 income years, the loss is your tax loss for that income year, which is called a loss year. The loss is also called a primary production loss.
(2) You can deduct the tax loss in the 1997‑98 or a later income year only to the extent that it has not already been deducted.
(3) You deduct your primary production losses (in the order in which you incurred them) before any other tax losses of the same or any other loss year, except film losses.
(4) A company cannot transfer any amount of a primary production loss for the 1983‑84 or an earlier income year under Subdivision 170‑A (Transfer of tax losses within wholly‑owned groups of companies) of the Income Tax Assessment Act 1997.
(5) For the purposes of determining how much (if any) of a primary production loss you can deduct in the 1997‑98 or a later income year, subsections 80AA(9), (10) and (11) of the Income Tax Assessment Act 1936 apply in the same way as they apply for the purposes they refer to.
## Division 15 Some items of assessable income
15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax
## 15‑1 General application provision 15‑1 General application provision
(1) Division 15 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(2) However, the sections of that Act listed in the table apply in accordance with the corresponding sections of this Act.
<table cellspacing="0" cellpadding="0" style="margin-left:56.75pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:258.65pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Application provisions for specific sections</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><br><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This section of the </span><span style="font-size:9pt; font-weight:bold; font-style:italic">Income Tax Assessment Act 1997</span><span style="font-size:9pt; font-weight:bold"> ...</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Applies as described in this section of this Act ...</span></p></td></tr></thead><tbody><tr><td style="width:24.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:106.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>10</span></p></td><td style="width:106.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>10</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>15</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>15</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>20</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>20</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>30</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>30</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>35</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>35</span></p></td></tr></tbody></table>
```
## 15‑10 Application of section 15‑10 of th 15‑10 Application of section 15‑10 of the Income Tax Assessment Act 1997 to bounties and subsidies
Section 15‑10 (Bounties and subsidies) of the Income Tax Assessment Act 1997 applies to a bounty or subsidy received in the 1997‑98 income year or a later income year.
## 15‑15 Application of section 15‑15 of th 15‑15 Application of section 15‑15 of the Income Tax Assessment Act 1997 to profit‑making undertaking or plan
Section 15‑15 (Profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 applies to a profit arising in the 1997‑98 income year or a later income year, even if the undertaking or plan was entered into, or began to be carried on or carried out, before the 1997‑98 income year.
## 15‑20 Application of section 15‑20 of th 15‑20 Application of section 15‑20 of the Income Tax Assessment Act 1997 to royalties
Section 15‑20 (Royalties) of the Income Tax Assessment Act 1997 applies to an amount received as or by way of royalty in the 1997‑98 income year or a later income year.
## 15‑30 Application of section 15‑30 of th 15‑30 Application of section 15‑30 of the Income Tax Assessment Act 1997 to insurance or indemnity payments
Section 15‑30 (Insurance or indemnity for loss of assessable income) of the Income Tax Assessment Act 1997 applies to an amount received in the 1997‑98 income year or a later income year as insurance or indemnity for the loss at any time of an amount that would have been assessable income under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.
## 15‑35 Application of section 15‑35 of th 15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax
#### 15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax
Section 15‑35 (Interest on overpayments and early payments of tax) of the Income Tax Assessment Act 1997 applies to interest that is paid or applied in the 1997‑98 income year or a later income year, even if some or all of the interest became payable earlier.
## Division 20 Items included to reverse the effect of past deductions
## Subdivision 20 ‑A—Insurance, indemnity or recoupment for deductible expenses
## 20‑1 Application of Subdivision 20‑A of 20‑1 Application of Subdivision 20‑A of the Income Tax Assessment Act 1997
Subdivision 20‑A of the Income Tax Assessment Act 1997 applies to an assessable recoupment received in the 1997‑98 income year or a later income year of a loss or outgoing whenever incurred.
## Subdivision 20 ‑B—Disposal of a car for which lease payments have been deducted
20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it
## 20‑100 Application of Subdivision 20‑B o 20‑100 Application of Subdivision 20‑B of the Income Tax Assessment Act 1997
Subdivision 20‑B of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
## 20‑105 The cost of a car acquired in the 20‑105 The cost of a car acquired in the 1996‑97 income year or an earlier income year
the cost of the car to the lessor for the purposes of section 20‑120 of the Income Tax Assessment Act 1997 is worked out under the depreciation provisions of the Income Tax Assessment Act 1936.
> Note 1: Section 20‑120 of the Income Tax Assessment Act 1997 is about a limit on the amount to be included in your assessable income because of your disposal of the car.
> Note 2: The depreciation provisions were in Subdivision A of Division 3 of Part III of the Income Tax Assessment Act 1936.
(2) In working out the cost of the car to the lessor, disregard any election the lessor made under former subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936 to reduce the cost of the car.
## 20‑110 The termination value of a car di 20‑110 The termination value of a car disposed of in the 1996‑97 income year or an earlier income year
If:
the car’s termination value (in respect of the disposal by the lessor) for the purposes of section 20‑120 of the Income Tax Assessment Act 1997 is the consideration receivable by the lessor for the disposal (worked out under former section 59 of the Income Tax Assessment Act 1936).
> Note: Section 20‑120 of the Income Tax Assessment Act 1997 is about a limit on the amount to be included in your assessable income because of your disposal of the car.
## 20‑115 Reducing the assessable amount fo 20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it
#### 20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it
If:
(a) section 20‑110 or 20‑125 of the Income Tax Assessment Act 1997 includes an amount in your assessable income for the 1997‑98 income year or a later income year because of your disposal of a car; and
(b) in the 1996‑97 income year or an earlier income year (but after the lease period began) there was an earlier disposal of the car, or an interest in it, by you or another entity in a situation described in the following table;
<table cellspacing="0" cellpadding="0" style="width:366.4pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:355.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Reducing each limit on the amount to be included</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">In this situation:</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">reduce each limit by:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:265.65pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> included an amount in your assessable income in respect of such an earlier disposal by you</span></p></td><td style="width:49.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> included an amount in another entity’s assessable income in respect of such an earlier disposal by the other entity</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936 </span><span>would have included an amount in your assessable income in respect of such an earlier disposal by you but for the operation of former subsection</span><span> </span><span>26AAB(12) of that Act</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>4</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> would have included an amount in another entity’s assessable income in respect of such an earlier disposal by the other entity but for the operation of former subsection</span><span> </span><span>26AAB(12) of that Act</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former subsection</span><span> </span><span>26AAB(9) of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> reduced the amount to be included in your assessable income in respect of such an earlier disposal by you</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount of the reduction</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former subsection</span><span> </span><span>26AAB(9) of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> reduced the amount to be included in another entity’s assessable income in respect of such an earlier disposal by the other entity</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount of the reduction</span></p></td></tr></tbody></table>
```
## Part 2 ‑5—Rules about deductibility of particular kinds of amounts
> Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.
(2) Division 950 of the Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to this Act as if the provisions of this Act were provisions of that Act.
The Income Tax Assessment Act 1997, as originally enacted, applies to assessments for the 1997‑98 income year and later income years.
> Note: For the application of amendments of that Act (including new provisions inserted in it), see the Acts making the amendments.
> Note: This section will also affect the income tax payable by some trustees who are taxed as if certain trust income were income of individuals. See sections 98 and 99 of the Income Tax Assessment Act 1936.
(2) Your temporary budget repair levy is worked out by reference to your taxable income for the corresponding income year using the rate or rates that apply to you.
(a) section 4‑10 of the Income Tax Assessment Act 1997 has effect as if it made you liable to pay the extra tax mentioned in subsection (1) of this section; and
(b) subsection 4‑10(3) of that Act has effect as if step 4 of the method statement in that subsection were omitted and the following were substituted:
Step 3B. Add the extra income tax you must pay as mentioned in subsection 4‑11(1) of the Income Tax (Transitional Provisions) Act 1997.
Step 4. If an amount of your tax offset for foreign income tax under Division 770 remains after applying section 63‑10, subtract the remaining amount from the result of step 3B. The result is how much income tax you owe for the financial year.
> Note: As a result, you cannot apply any tax offsets against temporary budget repair levy under Part 2‑20 of the Income Tax Assessment Act 1997 (apart from the foreign income tax offset applied under step 4 of the method statement in subsection (3)).
Subject to section 5‑15 of this Act, Division 5 of the Income Tax Assessment Act 1997, as originally enacted, applies in relation to income tax or shortfall interest charge you must pay for:
(1) A reference in an agreement to section 204 of the Income Tax Assessment Act 1936 is taken, from the commencement of this section, to be a reference to section 5‑5 of the Income Tax Assessment Act 1997, if:
(1) This section applies if, just before the commencement of this section, you were liable, under subsection 204(3) (the old provision) of the Income Tax Assessment Act 1936, to pay the general interest charge on an unpaid amount (the liability) of any tax or shortfall interest charge.
(3) From that commencement, section 5‑15 (the new provision) of the Income Tax Assessment Act 1997, as originally enacted, applies to the liability as if:
(b) so much of the charge under the old provision as remained unpaid at that time had been imposed under the new provision and remained unpaid at that time.
(1) Section 5‑15 of the Income Tax Assessment Act 1997 (General interest charge payable on unpaid income tax or shortfall interest charge), as originally enacted, applies to an amount of income tax or shortfall interest charge you must pay for a financial year, if the income tax or shortfall interest charge is due to be paid on or after the commencement of that section.
(2) For the purposes of subsection (1), it does not matter whether the financial year ended before, on or after the commencement of that section.
For the 1996‑97 income year or an earlier income year, assessable income means all the amounts that under the Income Tax Assessment Act 1936 are included in the assessable income.
For the 1996‑97 income year or an earlier income year, exempt income means income which is exempt from tax and includes income which is not assessable income.
For the 1996‑97 income year or an earlier income year, deduction means a deduction allowable under the Income Tax Assessment Act 1936.
If:
(a) a provision of the Income Tax Assessment Act 1936 allows you a deduction in respect of an amount for the 1996‑97 income year or an earlier income year; and
(b) a different provision of that Act, or a provision of the Income Tax Assessment Act 1997, allows you a deduction in respect of the same amount for the 1997‑98 income year or a later income year;
15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax
(1) Division 15 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(2) However, the sections of that Act listed in the table apply in accordance with the corresponding sections of this Act.
<table cellspacing="0" cellpadding="0" style="margin-left:56.75pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:258.65pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Application provisions for specific sections</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><br><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This section of the </span><span style="font-size:9pt; font-weight:bold; font-style:italic">Income Tax Assessment Act 1997</span><span style="font-size:9pt; font-weight:bold"> ...</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Applies as described in this section of this Act ...</span></p></td></tr></thead><tbody><tr><td style="width:24.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:106.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>10</span></p></td><td style="width:106.25pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>10</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>15</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>15</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>20</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>20</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>30</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>30</span></p></td></tr><tr><td style="width:24.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>35</span></p></td><td style="width:106.25pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>15</span><span>‑</span><span>35</span></p></td></tr></tbody></table>
```
Section 15‑10 (Bounties and subsidies) of the Income Tax Assessment Act 1997 applies to a bounty or subsidy received in the 1997‑98 income year or a later income year.
Section 15‑15 (Profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 applies to a profit arising in the 1997‑98 income year or a later income year, even if the undertaking or plan was entered into, or began to be carried on or carried out, before the 1997‑98 income year.
Section 15‑20 (Royalties) of the Income Tax Assessment Act 1997 applies to an amount received as or by way of royalty in the 1997‑98 income year or a later income year.
Section 15‑30 (Insurance or indemnity for loss of assessable income) of the Income Tax Assessment Act 1997 applies to an amount received in the 1997‑98 income year or a later income year as insurance or indemnity for the loss at any time of an amount that would have been assessable income under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.
#### 15‑35 Application of section 15‑35 of the Income Tax Assessment Act 1997 to interest on overpayments and early payments of tax
Section 15‑35 (Interest on overpayments and early payments of tax) of the Income Tax Assessment Act 1997 applies to interest that is paid or applied in the 1997‑98 income year or a later income year, even if some or all of the interest became payable earlier.
Subdivision 20‑A of the Income Tax Assessment Act 1997 applies to an assessable recoupment received in the 1997‑98 income year or a later income year of a loss or outgoing whenever incurred.
20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it
Subdivision 20‑B of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
the cost of the car to the lessor for the purposes of section 20‑120 of the Income Tax Assessment Act 1997 is worked out under the depreciation provisions of the Income Tax Assessment Act 1936.
> Note 1: Section 20‑120 of the Income Tax Assessment Act 1997 is about a limit on the amount to be included in your assessable income because of your disposal of the car.
> Note 2: The depreciation provisions were in Subdivision A of Division 3 of Part III of the Income Tax Assessment Act 1936.
(2) In working out the cost of the car to the lessor, disregard any election the lessor made under former subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936 to reduce the cost of the car.
If:
the car’s termination value (in respect of the disposal by the lessor) for the purposes of section 20‑120 of the Income Tax Assessment Act 1997 is the consideration receivable by the lessor for the disposal (worked out under former section 59 of the Income Tax Assessment Act 1936).
> Note: Section 20‑120 of the Income Tax Assessment Act 1997 is about a limit on the amount to be included in your assessable income because of your disposal of the car.
#### 20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it
If:
(a) section 20‑110 or 20‑125 of the Income Tax Assessment Act 1997 includes an amount in your assessable income for the 1997‑98 income year or a later income year because of your disposal of a car; and
(b) in the 1996‑97 income year or an earlier income year (but after the lease period began) there was an earlier disposal of the car, or an interest in it, by you or another entity in a situation described in the following table;
<table cellspacing="0" cellpadding="0" style="width:366.4pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:355.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Reducing each limit on the amount to be included</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">In this situation:</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext"><span style="font-size:9pt; font-weight:bold">reduce each limit by:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:265.65pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> included an amount in your assessable income in respect of such an earlier disposal by you</span></p></td><td style="width:49.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> included an amount in another entity’s assessable income in respect of such an earlier disposal by the other entity</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936 </span><span>would have included an amount in your assessable income in respect of such an earlier disposal by you but for the operation of former subsection</span><span> </span><span>26AAB(12) of that Act</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>4</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Former section</span><span> </span><span>26AAB of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> would have included an amount in another entity’s assessable income in respect of such an earlier disposal by the other entity but for the operation of former subsection</span><span> </span><span>26AAB(12) of that Act</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>that amount</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former subsection</span><span> </span><span>26AAB(9) of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> reduced the amount to be included in your assessable income in respect of such an earlier disposal by you</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount of the reduction</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:265.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Former subsection</span><span> </span><span>26AAB(9) of the </span><span style="font-style:italic">Income Tax Assessment Act 1936</span><span> reduced the amount to be included in another entity’s assessable income in respect of such an earlier disposal by the other entity</span></p></td><td style="width:49.75pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount of the reduction</span></p></td></tr></tbody></table>
```
Division 25 (Some amounts you can deduct) of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years, except as provided by this Division.
Section 25‑40 (Loss from profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 applies to a loss arising in the 1997‑98 income year or a later income year, even if the undertaking or plan was entered into, or began to be carried on or carried out, before the 1997‑98 income year.
Section 25‑45 (which is about deductions for losses by theft etc.) of the Income Tax Assessment Act 1997 applies to a loss discovered in the 1997‑98 income year or a later income year.
Section 25‑90 (which is about deductions relating to foreign exempt income) of the Income Tax Assessment Act 1997 applies to an amount incurred in an income year that begins on or after 1 July 2001.
Section 25‑65 of the Income Tax Assessment Act 1997 applies to the 2006‑07 income year and later income years, in relation to expenditure whenever incurred. In relation to expenditure incurred in the 2005‑06 income year or an earlier income year, it applies as if:
(b) an allowable deduction for the expenditure under section 74A of the Income Tax Assessment Act 1936 had been a deduction for the expenditure under section 25‑65 of the Income Tax Assessment Act 1997.
> Note: This section also has the result that, to the extent that a recoupment of the expenditure has been included in your assessable income by former subsections 74A(4) and (5) of the Income Tax Assessment Act 1936, the expenditure will be disregarded in applying the $1,000 per election deduction limit: see subsection 25‑65(2) of the Income Tax Assessment Act 1997.
Division 26 of the Income Tax Assessment Act 1997 (which prevents or limits deductions) applies to assessments for the 1997‑98 income year and later income years, except as provided by this Division.
Section 26‑30 (which denies a deduction for relative’s travel expenses) of the Income Tax Assessment Act 1997 applies to travel on or after 1 July 1997.
Division 30 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(1) This section applies to a declaration or other instrument (described in column 2 of an item in the table in this section) that is in force at the end of 30 June 1997 for the purposes of the provision of the Income Tax Assessment Act 1936 referred to in that column of the item.
(2) On and after 1 July 1997 the declaration or other instrument also has effect as if it were an approval or declaration (described in column 3 of the same item) made for the purposes of the provision of the Income Tax Assessment Act 1997 referred to in that column of the item.
Anything done on or after 1 July 1997 in relation to an approval or declaration described in column 3 of an item in the table also has effect as if it had been done in relation to the declaration or other instrument described in column 2 of that item.
<table cellspacing="0" cellpadding="0" style="width:365.7pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:354.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>On and after 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This approval, declaration or other instrument:</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">also has effect as if it were:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>1</span></p></td><td style="width:183.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>An instrument certifying an institution to be a technical and further education institution for the purposes of item</span><span> </span><span>2.1.7 of table 2 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>A declaration that the institution is a technical and further education institution for the purposes of item</span><span> </span><span>2.1.7 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>25(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument certifying that purposes of an institution covered by item</span><span> </span><span>2.1.7 of table 2 in subsection</span><span> </span><span>78(4), or of the college covered by item</span><span> </span><span>2.2.14 of that table, relate exclusively to tertiary education</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration (for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>30) that those purposes of the institution, or of the college, relate solely to tertiary education</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving an organisation, or a branch or section of an organisation, to be a marriage guidance organisation for the purposes of item</span><span> </span><span>8.1.1 of table 8 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the organisation, or branch or section of the organisation, is a marriage guidance organisation for the purposes of item</span><span> </span><span>8.1.1 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>70(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that a public fund is an eligible fund for the purposes of item</span><span> </span><span>9.1.1 of table 9 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the public fund is a relief fund for the purposes of item</span><span> </span><span>9.1.1 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>80(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving a person as a valuer under subsection</span><span> </span><span>78(18)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An approval of the person as a valuer under section</span><span> </span><span>30</span><span>‑</span><span>210</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving an organisation as an approved organisation for the purposes of subsection</span><span> </span><span>78(21)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the organisation is an approved organisation for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>85</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>7</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument certifying a country to be a developing country for the purposes of subsection</span><span> </span><span>78(21)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the country is a developing country for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>85</span></p></td></tr></tbody></table>
```
(1) On and after 1 July 1997, the register described in column 2 of an item in the table in this section (as the register existed at the end of 30 June 1997) also has effect as if it were the register described in column 3 of that item.
Column 2 refers to provisions of the Income Tax Assessment Act 1936. Column 3 refers to provisions of the Income Tax Assessment Act 1997.
(2) Anything done on or after 1 July 1997 in relation to the register described in column 3 of an item in the table also has effect as if it had been done in relation to the register described in column 2 of that item.
<table cellspacing="0" cellpadding="0" style="width:363.25pt; border-collapse:collapse"><tbody><tr><td colspan="3" style="width:352.45pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>On and after 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:20pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This register:</span></p></td><td style="width:151.55pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">also has effect as if it were:</span></p></td></tr><tr><td style="width:20pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:159.3pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of cultural organisations kept under section</span><span> </span><span>78AA</span></p></td><td style="width:151.55pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of cultural organisations kept under Subdivision</span><span> </span><span>30</span><span>‑</span><span>F</span></p></td></tr><tr><td style="width:20pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of environmental organisations kept under section</span><span> </span><span>78AB</span></p></td><td style="width:151.55pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of environmental organisations kept under Subdivision</span><span> </span><span>30</span><span>‑</span><span>E</span></p></td></tr></tbody></table>
```
(1) The authorities and institutions listed in this table are taken to have been endorsed by the Commissioner of Taxation for the purposes of item 12A.1.1 of the table in section 30‑102 of the Income Tax Assessment Act 1997 under paragraph 30‑120(a) of that Act.
| Item | Fund, authority or institution | Established under legislation of the following State or Territory |
| ---- | ---------------------------------------------------------- | ----------------------------------------------------------------- |
| 1 | State Emergency Service | New South Wales |
| 2 | Country Fire Authority | Victoria |
| 3 | Victoria State Emergency Service | Victoria |
| 4 | Queensland Fire and Rescue Service | Queensland |
| 5 | State Emergency Service | Queensland |
| 6 | Fire and Emergency Services Authority of Western Australia | Western Australia |
| 7 | State Emergency Service South Australia | South Australia |
| 8 | Tasmania Fire Service | Tasmania |
| 9 | State Emergency Service | Tasmania |
| 10 | ACT Rural Fire Service | Australian Capital Territory |
| 11 | ACT State Emergency Service | Australian Capital Territory |
(2) The fund listed in this table is taken to have been endorsed by the Commissioner of Taxation for the purposes of item 12A.1.2 of section 30‑102 of the Income Tax Assessment Act 1997 under paragraph 30‑120(b) of that Act.
(3) The funds, authorities and institutions referred to in subsections (1) and (2) are taken to have been endorsed on the day on which Schedule 7 to the Tax Laws Amendment (2010 Measures No. 4) Act 2010 commences.
Division 32 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
Division 34 (Non‑compulsory uniforms) of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
(1) From 1 July 1997, anything done under or in connection with a provision of former section 51AL of the Income Tax Assessment Act 1936 has effect as if it had been done under or in connection with the corresponding provision of Division 34 of the Income Tax Assessment Act 1997.
(2) From 1 July 1997, a thing described in column 2 of an item in the table (as that thing existed at the end of 30 June 1997) has effect as if it were the thing described in column 3 of that item.
Column 2 refers to provisions of the Income Tax Assessment Act 1936. Column 3 refers to provisions of the Income Tax Assessment Act 1997.
<table cellspacing="0" cellpadding="0" style="width:366.4pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:355.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>As from 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This:</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">has effect as if it were this:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>1</span></p></td><td style="width:172.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>The Register of Approved Occupational Clothing that former subsection</span><span> </span><span>51AL(5) requires the Industry Secretary to keep</span></p></td><td style="width:142.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>The Register of Approved Occupational Clothing that section</span><span> </span><span>34</span><span>‑</span><span>45 requires the Industry Secretary to keep</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>2</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Approved occupational clothing guidelines in force under former subsection</span><span> </span><span>51AL(7)</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Approved occupational clothing guidelines made under section</span><span> </span><span>34</span><span>‑</span><span>55</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A delegation by the Industry Secretary under former subsection</span><span> </span><span>51AL(23)</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A delegation by the Industry Secretary under section</span><span> </span><span>34</span><span>‑</span><span>65</span></p></td></tr></tbody></table>
```
The rule in subsection 35‑10(2) of the Income Tax Assessment Act 1997 does not apply for an income year to a business activity if:
(b) the total of those amounts is more than or equal to the excess worked out under that subsection for the business activity for the income year.
To work out your tax loss (if any) for the 1997‑98 income year or a later income year, apply the provisions of the Income Tax Assessment Act 1997 about tax losses.
(1) If you incurred a loss for the purposes of section 79E (General domestic losses of 1989‑90 to 1996‑97 years of income) of the Income Tax Assessment Act 1936 in any of the 1989‑90 to 1996‑97 income years, the loss is your tax loss for that income year, which is called a loss year.
(2) You can deduct the tax loss in the 1997‑98 or a later income year only to the extent that it has not already been deducted.
(1) If you incurred a loss for the purposes of section 80AA (Primary production losses of pre‑1990 years of income) of the Income Tax Assessment Act 1936 in any of the 1957‑58 to 1988‑89 income years, the loss is your tax loss for that income year, which is called a loss year. The loss is also called a primary production loss.
(2) You can deduct the tax loss in the 1997‑98 or a later income year only to the extent that it has not already been deducted.
(3) You deduct your primary production losses (in the order in which you incurred them) before any other tax losses of the same or any other loss year, except film losses.
(4) A company cannot transfer any amount of a primary production loss for the 1983‑84 or an earlier income year under Subdivision 170‑A (Transfer of tax losses within wholly‑owned groups of companies) of the Income Tax Assessment Act 1997.
(5) For the purposes of determining how much (if any) of a primary production loss you can deduct in the 1997‑98 or a later income year, subsections 80AA(9), (10) and (11) of the Income Tax Assessment Act 1936 apply in the same way as they apply for the purposes they refer to.
## Division 25 Some amounts you can deduct
## 25‑1 Application of Division 25 of the I 25‑1 Application of Division 25 of the Income Tax Assessment Act 1997
Division 25 (Some amounts you can deduct) of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years, except as provided by this Division.
## 25‑40 Application of section 25‑40 of th 25‑40 Application of section 25‑40 of the Income Tax Assessment Act 1997
Section 25‑40 (Loss from profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 applies to a loss arising in the 1997‑98 income year or a later income year, even if the undertaking or plan was entered into, or began to be carried on or carried out, before the 1997‑98 income year.
## 25‑45 Application of section 25‑45 of th 25‑45 Application of section 25‑45 of the Income Tax Assessment Act 1997
Section 25‑45 (which is about deductions for losses by theft etc.) of the Income Tax Assessment Act 1997 applies to a loss discovered in the 1997‑98 income year or a later income year.
## 25‑50 Application of section 25‑90 of th 25‑50 Application of section 25‑90 of the Income Tax Assessment Act 1997
Section 25‑90 (which is about deductions relating to foreign exempt income) of the Income Tax Assessment Act 1997 applies to an amount incurred in an income year that begins on or after 1 July 2001.
## 25‑65 Local government election expenses 25‑65 Local government election expenses
Section 25‑65 of the Income Tax Assessment Act 1997 applies to the 2006‑07 income year and later income years, in relation to expenditure whenever incurred. In relation to expenditure incurred in the 2005‑06 income year or an earlier income year, it applies as if:
(b) an allowable deduction for the expenditure under section 74A of the Income Tax Assessment Act 1936 had been a deduction for the expenditure under section 25‑65 of the Income Tax Assessment Act 1997.
> Note: This section also has the result that, to the extent that a recoupment of the expenditure has been included in your assessable income by former subsections 74A(4) and (5) of the Income Tax Assessment Act 1936, the expenditure will be disregarded in applying the $1,000 per election deduction limit: see subsection 25‑65(2) of the Income Tax Assessment Act 1997.
## Division 26 Some amounts you cannot deduct, or cannot deduct in full
## 26‑1 Application of Division 26 of the I 26‑1 Application of Division 26 of the Income Tax Assessment Act 1997
Division 26 of the Income Tax Assessment Act 1997 (which prevents or limits deductions) applies to assessments for the 1997‑98 income year and later income years, except as provided by this Division.
## 26‑30 Application of section 26‑30 of th 26‑30 Application of section 26‑30 of the Income Tax Assessment Act 1997
Section 26‑30 (which denies a deduction for relative’s travel expenses) of the Income Tax Assessment Act 1997 applies to travel on or after 1 July 1997.
## Division 30 Gifts or contributions
## 30‑1 Application of Division 30 of the I 30‑1 Application of Division 30 of the Income Tax Assessment Act 1997
Division 30 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
## 30‑5 Keeping in force old declarations a 30‑5 Keeping in force old declarations and instruments
(1) This section applies to a declaration or other instrument (described in column 2 of an item in the table in this section) that is in force at the end of 30 June 1997 for the purposes of the provision of the Income Tax Assessment Act 1936 referred to in that column of the item.
(2) On and after 1 July 1997 the declaration or other instrument also has effect as if it were an approval or declaration (described in column 3 of the same item) made for the purposes of the provision of the Income Tax Assessment Act 1997 referred to in that column of the item.
Anything done on or after 1 July 1997 in relation to an approval or declaration described in column 3 of an item in the table also has effect as if it had been done in relation to the declaration or other instrument described in column 2 of that item.
<table cellspacing="0" cellpadding="0" style="width:365.7pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:354.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>On and after 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This approval, declaration or other instrument:</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">also has effect as if it were:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>1</span></p></td><td style="width:183.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>An instrument certifying an institution to be a technical and further education institution for the purposes of item</span><span> </span><span>2.1.7 of table 2 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>A declaration that the institution is a technical and further education institution for the purposes of item</span><span> </span><span>2.1.7 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>25(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument certifying that purposes of an institution covered by item</span><span> </span><span>2.1.7 of table 2 in subsection</span><span> </span><span>78(4), or of the college covered by item</span><span> </span><span>2.2.14 of that table, relate exclusively to tertiary education</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration (for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>30) that those purposes of the institution, or of the college, relate solely to tertiary education</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving an organisation, or a branch or section of an organisation, to be a marriage guidance organisation for the purposes of item</span><span> </span><span>8.1.1 of table 8 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the organisation, or branch or section of the organisation, is a marriage guidance organisation for the purposes of item</span><span> </span><span>8.1.1 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>70(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that a public fund is an eligible fund for the purposes of item</span><span> </span><span>9.1.1 of table 9 in subsection</span><span> </span><span>78(4)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the public fund is a relief fund for the purposes of item</span><span> </span><span>9.1.1 of the table in subsection</span><span> </span><span>30</span><span>‑</span><span>80(1)</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving a person as a valuer under subsection</span><span> </span><span>78(18)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An approval of the person as a valuer under section</span><span> </span><span>30</span><span>‑</span><span>210</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument approving an organisation as an approved organisation for the purposes of subsection</span><span> </span><span>78(21)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the organisation is an approved organisation for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>85</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>7</span></p></td><td style="width:183.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>An instrument certifying a country to be a developing country for the purposes of subsection</span><span> </span><span>78(21)</span></p></td><td style="width:130.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A declaration that the country is a developing country for the purposes of section</span><span> </span><span>30</span><span>‑</span><span>85</span></p></td></tr></tbody></table>
```
## 30‑25 Keeping in force the old gifts reg 30‑25 Keeping in force the old gifts registers
(1) On and after 1 July 1997, the register described in column 2 of an item in the table in this section (as the register existed at the end of 30 June 1997) also has effect as if it were the register described in column 3 of that item.
Column 2 refers to provisions of the Income Tax Assessment Act 1936. Column 3 refers to provisions of the Income Tax Assessment Act 1997.
(2) Anything done on or after 1 July 1997 in relation to the register described in column 3 of an item in the table also has effect as if it had been done in relation to the register described in column 2 of that item.
<table cellspacing="0" cellpadding="0" style="width:363.25pt; border-collapse:collapse"><tbody><tr><td colspan="3" style="width:352.45pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>On and after 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:20pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This register:</span></p></td><td style="width:151.55pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">also has effect as if it were:</span></p></td></tr><tr><td style="width:20pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:159.3pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of cultural organisations kept under section</span><span> </span><span>78AA</span></p></td><td style="width:151.55pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of cultural organisations kept under Subdivision</span><span> </span><span>30</span><span>‑</span><span>F</span></p></td></tr><tr><td style="width:20pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of environmental organisations kept under section</span><span> </span><span>78AB</span></p></td><td style="width:151.55pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>The register of environmental organisations kept under Subdivision</span><span> </span><span>30</span><span>‑</span><span>E</span></p></td></tr></tbody></table>
```
## 30‑102 Fund, authorities and institution 30‑102 Fund, authorities and institutions taken to be endorsed
(1) The authorities and institutions listed in this table are taken to have been endorsed by the Commissioner of Taxation for the purposes of item 12A.1.1 of the table in section 30‑102 of the Income Tax Assessment Act 1997 under paragraph 30‑120(a) of that Act.
| Item | Fund, authority or institution | Established under legislation of the following State or Territory |
| ---- | ---------------------------------------------------------- | ----------------------------------------------------------------- |
| 1 | State Emergency Service | New South Wales |
| 2 | Country Fire Authority | Victoria |
| 3 | Victoria State Emergency Service | Victoria |
| 4 | Queensland Fire and Rescue Service | Queensland |
| 5 | State Emergency Service | Queensland |
| 6 | Fire and Emergency Services Authority of Western Australia | Western Australia |
| 7 | State Emergency Service South Australia | South Australia |
| 8 | Tasmania Fire Service | Tasmania |
| 9 | State Emergency Service | Tasmania |
| 10 | ACT Rural Fire Service | Australian Capital Territory |
| 11 | ACT State Emergency Service | Australian Capital Territory |
(2) The fund listed in this table is taken to have been endorsed by the Commissioner of Taxation for the purposes of item 12A.1.2 of section 30‑102 of the Income Tax Assessment Act 1997 under paragraph 30‑120(b) of that Act.
(3) The funds, authorities and institutions referred to in subsections (1) and (2) are taken to have been endorsed on the day on which Schedule 7 to the Tax Laws Amendment (2010 Measures No. 4) Act 2010 commences.
## Division 32 Entertainment expenses
## 32‑1 Application of Division 32 of the I 32‑1 Application of Division 32 of the Income Tax Assessment Act 1997
Division 32 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
## Division 34 Non‑compulsory uniforms
## 34‑1 Application of Division 34 of the I 34‑1 Application of Division 34 of the Income Tax Assessment Act 1997
Division 34 (Non‑compulsory uniforms) of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.
## 34‑5 Things done under former section 51 34‑5 Things done under former section 51AL of the Income Tax Assessment Act 1936
(1) From 1 July 1997, anything done under or in connection with a provision of former section 51AL of the Income Tax Assessment Act 1936 has effect as if it had been done under or in connection with the corresponding provision of Division 34 of the Income Tax Assessment Act 1997.
(2) From 1 July 1997, a thing described in column 2 of an item in the table (as that thing existed at the end of 30 June 1997) has effect as if it were the thing described in column 3 of that item.
Column 2 refers to provisions of the Income Tax Assessment Act 1936. Column 3 refers to provisions of the Income Tax Assessment Act 1997.
<table cellspacing="0" cellpadding="0" style="width:366.4pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:355.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>As from 1</span><span> </span><span>July 1997</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">Item</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">This:</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-size:9pt; font-weight:bold">has effect as if it were this:</span></p></td></tr></thead><tbody><tr><td style="width:18.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>1</span></p></td><td style="width:172.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>The Register of Approved Occupational Clothing that former subsection</span><span> </span><span>51AL(5) requires the Industry Secretary to keep</span></p></td><td style="width:142.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>The Register of Approved Occupational Clothing that section</span><span> </span><span>34</span><span>‑</span><span>45 requires the Industry Secretary to keep</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>2</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Approved occupational clothing guidelines in force under former subsection</span><span> </span><span>51AL(7)</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span>Approved occupational clothing guidelines made under section</span><span> </span><span>34</span><span>‑</span><span>55</span></p></td></tr><tr><td style="width:18.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:172.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A delegation by the Industry Secretary under former subsection</span><span> </span><span>51AL(23)</span></p></td><td style="width:142.8pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>A delegation by the Industry Secretary under section</span><span> </span><span>34</span><span>‑</span><span>65</span></p></td></tr></tbody></table>
```
## Division 35 Deferral of losses from non‑commercial business activities
## 35‑10 Deductions for certain new busines 35‑10 Deductions for certain new business investment
The rule in subsection 35‑10(2) of the Income Tax Assessment Act 1997 does not apply for an income year to a business activity if:
(b) the total of those amounts is more than or equal to the excess worked out under that subsection for the business activity for the income year.
## 35‑20 Application of Commissioner’s deci 35‑20 Application of Commissioner’s decisions
## Division 36 Tax losses of earlier income years
## 36‑100 Tax losses for the 1997‑98 and la 36‑100 Tax losses for the 1997‑98 and later income years
To work out your tax loss (if any) for the 1997‑98 income year or a later income year, apply the provisions of the Income Tax Assessment Act 1997 about tax losses.
## 36‑105 Tax losses for 1989‑90 to 1996‑97 36‑105 Tax losses for 1989‑90 to 1996‑97 income years
(1) If you incurred a loss for the purposes of section 79E (General domestic losses of 1989‑90 to 1996‑97 years of income) of the Income Tax Assessment Act 1936 in any of the 1989‑90 to 1996‑97 income years, the loss is your tax loss for that income year, which is called a loss year.
(2) You can deduct the tax loss in the 1997‑98 or a later income year only to the extent that it has not already been deducted.
## 36‑110 Tax losses for 1957‑58 to 1988‑89 36‑110 Tax losses for 1957‑58 to 1988‑89 income years
(1) If you incurred a loss for the purposes of section 80AA (Primary production losses of pre‑1990 years of income) of the Income Tax Assessment Act 1936 in any of the 1957‑58 to 1988‑89 income years, the loss is your tax loss for that income year, which is called a loss year. The loss is also called a primary production loss.
(2) You can deduct the tax loss in the 1997‑98 or a later income year only to the extent that it has not already been deducted.
(3) You deduct your primary production losses (in the order in which you incurred them) before any other tax losses of the same or any other loss year, except film losses.
(4) A company cannot transfer any amount of a primary production loss for the 1983‑84 or an earlier income year under Subdivision 170‑A (Transfer of tax losses within wholly‑owned groups of companies) of the Income Tax Assessment Act 1997.
(5) For the purposes of determining how much (if any) of a primary production loss you can deduct in the 1997‑98 or a later income year, subsections 80AA(9), (10) and (11) of the Income Tax Assessment Act 1936 apply in the same way as they apply for the purposes they refer to.
## Part 2 ‑10—Capital allowances: rules about deductibility of capital expenditure
## Part 2‑10—Capital allowances: rules about deductibility of capital expenditure
### Division 40—Capital allowances
40‑B Core provisions
40‑BA Backing business investment
40‑BB Temporary full expensing of depreciating assets
40‑C Cost
40‑D Balancing adjustments
40‑E Low‑value and software development pools
40‑F Primary production depreciating assets
40‑G Capital expenditure of primary producers and other landholders
40‑I Capital expenditure that is deductible over time
40‑J Ships depreciated under section 57AM of the Income Tax Assessment Act 1936
#### Subdivision 40‑B—Core provisions
40‑10 Plant
40‑12 Plant acquired after 30 June 2001
40‑13 Accelerated depreciation for split or merged plant
40‑15 Recalculating effective life
40‑20 IRUs
40‑25 Software
40‑30 Spectrum licences
40‑33 Datacasting transmitter licences
40‑35 Mining unrecouped expenditure
## Division 40 Capital allowances
### Division 40—Capital allowances
40‑B Core provisions
40‑BA Backing business investment
40‑BB Temporary full expensing of depreciating assets
40‑C Cost
40‑D Balancing adjustments
40‑E Low‑value and software development pools
40‑F Primary production depreciating assets
40‑G Capital expenditure of primary producers and other landholders
40‑I Capital expenditure that is deductible over time
40‑J Ships depreciated under section 57AM of the Income Tax Assessment Act 1936
## Subdivision 40 ‑B—Core provisions
#### Subdivision 40‑B—Core provisions
40‑10 Plant
40‑12 Plant acquired after 30 June 2001
40‑13 Accelerated depreciation for split or merged plant
40‑15 Recalculating effective life
40‑20 IRUs
40‑25 Software
40‑30 Spectrum licences
40‑33 Datacasting transmitter licences
40‑35 Mining unrecouped expenditure
## 40‑10 Plant 40‑10 Plant
(a) you have deducted or can deduct amounts for plant under Division 42 of the Income Tax Assessment Act 1997 (the former Act) as in force just before it was amended by the New Business Tax System (Capital Allowances) Act 2001 and the New Business Tax System (Capital Allowances—Transitional and Consequential) Act 2001, or you could have deducted amounts under that Division for the plant if you had used it, or had it installed ready for use, for the purpose of producing assessable income before that day; and
(2) Division 40 of the Income Tax Assessment Act 1997 as amended by the New Business Tax System (Capital Allowances) Act 2001 and the New Business Tax System (Capital Allowances—Transitional and Consequential) Act 2001 (the new Act) applies to the plant on this basis:
(a) the amount that was your undeducted cost at the end of 30 June 2001 becomes the plant’s opening adjustable value; and
(b) you use the same cost, effective life and method that you were using under Division 42 of the former Act, or that you would have used if you had used the plant for the purpose of producing assessable income at the end of 30 June 2001; and
(c) if you excluded an amount from your assessable income under section 42‑290 of the former Act for a balancing adjustment event that occurred on or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999—the cost of the plant, and its opening adjustable value, are reduced by that amount; and
(d) if subparagraph (1)(b)(ii) applies to you—you are treated as the holder of the plant while you are its holder or while the circumstances under which you would have been the owner or quasi‑owner of the plant under the former Act continue.
(3) If you were using a rate for the plant under subsection 42‑160(1) or 42‑165(1) of the former Act just before 1 July 2001, or would have been using such a rate if you had used it, or had it installed ready for use, for the purpose of producing assessable income before that day, Division 40 of the new Act applies to the plant on this basis:
(a) for the diminishing value method—replace the component in the formula in subsection 40‑70(1) of the new Act that includes the plant’s effective life with the rate you were using; and
(i) replace the component in the formula in subsection 40‑75(1) of the new Act that includes the plant’s effective life with the rate you were using; and
(ii) increase the plant’s cost under Division 42 of the former Act by any amounts included in the second element of the plant’s cost after 30 June 2001.
> Note 1: Recalculating effective life will have no practical effect for an entity to whom subsection (3) applies because the component in the relevant formula that relies on effective life has been replaced.
> Note 2: Small business entities can choose to work out the decline in value of their depreciating assets under Division 328.
## 40‑12 Plant acquired after 30 June 2001 40‑12 Plant acquired after 30 June 2001
(a) you entered into a contract to acquire an item of plant before 1 July 2001 and you acquired it after 30 June 2001; or
(3) If you entered into the contract, or started to construct the plant, at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999, you replace the component in the formula in subsection 40‑70(1) or 40‑75(1) of the new Act that includes the plant’s effective life with the rate you would have been using if you had acquired it, or completed its construction, before 1 July 2001 and had used it, or had it installed ready for use, for the purpose of producing assessable income before that day.
## 40‑13 Accelerated depreciation for split 40‑13 Accelerated depreciation for split or merged plant
(a) you entered into a contract to acquire the plant, you otherwise acquired it or you started to construct it before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999; and
(2) For a case where the plant is split into 2 or more depreciating assets, the new Act applies as if you had acquired the assets into which it is split before the time mentioned in paragraph (1)(a) while you continue to hold those assets.
(3) For a case where the plant is merged into another depreciating asset, section 40‑125 of the new Act does not apply to the asset, or to your interest in the asset, into which it is merged while you continue to hold it.
## 40‑15 Recalculating effective life 40‑15 Recalculating effective life
(b) you would have been using such a rate if you had used the asset, or had it installed ready for use, for the purpose of producing assessable income before that day.
## 40‑20 IRUs 40‑20 IRUs
(a) you have deducted or can deduct an amount for an IRU under Division 44 of the former Act or you would have been able to deduct an amount for it under that Division if you had used it for the purpose of producing assessable income before 1 July 2001; and
(a) you use the cost, effective life and method you were using under Division 44 of the former Act or that you would have used if you had used the IRU for the purpose of producing assessable income before 1 July 2001; and
(b) the amount that was your undeducted cost of the IRU at the end of 30 June 2001 becomes the IRU’s opening adjustable value.
## 40‑25 Software 40‑25 Software
(1) Despite its repeal by this Act, Division 46 of the former Act continues to apply to expenditure on software that you incurred and that was in a software pool under that Division at the end of 30 June 2001.
(2) For a unit of software for which you were deducting amounts under Subdivision 46‑B of the former Act or for which you could have deducted amounts under that Subdivision if you had used the software for the purpose of producing assessable income before 1 July 2001, Division 40 of the new Act applies to the unit on this basis:
(d) you must use the same effective life you were using under Subdivision 46‑B of the former Act or that you would have used if you had used the software for the purpose of producing assessable income before 1 July 2001.
## 40‑30 Spectrum licences 40‑30 Spectrum licences
(1) This section applies to you if you have deducted or can deduct an amount under Division 380 of the former Act for expenditure incurred in obtaining a spectrum licence on or before 30 June 2001 or you could have deducted an amount under that Division for that expenditure if you had used the licence for the purpose of producing assessable income on or before that day.
(b) its opening adjustable value at 1 July 2001 is the amount of unrecouped expenditure for the licence at the end of 30 June 2001; and
## 40‑33 Datacasting transmitter licences 40‑33 Datacasting transmitter licences
(c) its effective life is 15 years less any period that has elapsed from the day the licence was issued until 1 July 2001; and
## 40‑35 Mining unrecouped expenditure 40‑35 Mining unrecouped expenditure
(1) This section applies to you if you have an amount of unrecouped expenditure under Division 330 of the former Act at the end of 30 June 2001.
> Note: Subsection (6) also applies to a case where you did not have unrecouped expenditure at 30 June 2001: see subsection (8).
(2) Division 40 of the new Act applies to the expenditure as if it were a depreciating asset (the notional asset) you hold on this basis:
(a) it has an opening adjustable value at 1 July 2001 equal to the amount of unrecouped expenditure reduced by any deductions allowable under section 330‑80 of the former Act for your income year ending on 30 June 2001; and
(c) in applying the formula in section 40‑75 of the new Act for the income year in which 1 July 2001 occurs—you use the adjustments in subsection 40‑75(3) of the new Act; and
(3) The remaining effective life of the notional asset at the start of an income year (present income year) for which you are working out its decline in value is:
(a) for an amount of unrecouped expenditure in respect of expenditure incurred in carrying on eligible mining operations other than in the course of petroleum mining is the lesser of these:
(i) the number equal to the difference between 10 and the number of income years (which may be zero) before the present income year for which an amount in respect of expenditure was deductible;
(ii) the number equal to the number of whole years in the estimated life of the mine, or proposed mine, on the mining property, or, if there is more than one such mine, of the mine that has the longest estimated life, as at the end of the present income year; or
(b) for an amount of unrecouped expenditure in respect of expenditure incurred in carrying on eligible mining operations in the course of petroleum mining is the lesser of these:
(i) the number equal to the difference between 10 and the number of income years (which may be zero) before the present income year for which an amount in respect of expenditure was deductible;
(ii) the number equal to the number of whole years in the estimated life of the petroleum field or proposed petroleum field as at the end of the present income year; or
(c) for an amount of unrecouped expenditure in respect of expenditure incurred in carrying on eligible quarrying operations the lesser of these:
(i) the number equal to the difference between 20 and the number of income years (which may be zero) before the present income year for which an amount in respect of expenditure was deductible; and
(ii) the number equal to the number of whole years in the estimated life of the quarry, or proposed quarry, on the quarrying property, or, if there is more than one such quarry, of the quarry that has the longest estimated life, as at the end of the present income year.
(i) any of the unrecouped expenditure referred to in subsection (1) relates to property that is not a depreciating asset (the other property);
(ii) in the cessation year, the other property is disposed of, lost or destroyed, or you stop using it for a taxable purpose;
there is an additional decline in value of the notional asset for the cessation year equal to so much of the notional asset’s adjustable value as relates to the real asset or the other property and has not been taken into account in working out the amount of a balancing adjustment in relation to the real asset.
(6) If the other property is disposed of, lost or destroyed, or you stop using it for a taxable purpose, you must include in your assessable income:
(a) if the other property is sold for a price specific to that property—that price, less the expenses of the sale (to the extent the expenses are reasonably attributable to selling that particular property); or
(b) if the other property is sold with additional property without a specific price being allocated to it—the part of the total sale price, less the reasonably attributable expenses of the sale, that is reasonably attributable to selling the other property; or
(c) if the other property is lost or destroyed—the amount or value received or receivable under an insurance policy or otherwise for the loss or destruction; or
However, the amount included is reduced to the extent (if any) that it is also included under subsection 40‑830(6) of the new Act.
(7) If section 40‑115 of the new Act applies, or section 40‑125 of the new Act would, apart from this subsection, apply, to the real asset referred to in subsection (5) of this section, then:
(a) if the real asset is split into 2 or more depreciating assets and you stop holding, or stop using for a taxable purpose, one or more but not all of the assets into which it is split—subsection (5) does not apply to that asset or assets into which it is split that you continue to hold and continue to use for a taxable purpose; or
(b) if the real asset is merged into another depreciating asset—section 40‑125 does not apply to the asset into which it is merged while you continue to hold it.
(a) you did not have an amount of unrecouped expenditure under Division 330 of the former Act at the end of 30 June 2001, but you had an amount of unrecouped expenditure under that Division before 30 June 2001; and
## 40‑37 Post‑30 June 2001 mining expenditu 40‑37 Post‑30 June 2001 mining expenditure
(b) the expenditure would have been allowable capital expenditure, and you could have deducted an amount for it, under Division 330 of the former Act if you had incurred it before 1 July 2001; and
(2) Division 40 of the new Act applies to the expenditure as if it were a depreciating asset (the notional asset) you hold on this basis:
(b) in applying the formula in section 40‑75 of the new Act for the income year in which you incur the expenditure—you use the adjustments in subsection 40‑75(3) of the new Act; and
(3) The effective life of the notional asset at the start of an income year (present income year) for which you are working out its decline in value is:
(a) for an amount of expenditure incurred in carrying on eligible mining operations other than in the course of petroleum mining—the lesser of 10 and the number equal to the number of whole years in the estimated life of the mine, or proposed mine, on the mining property, or, if there is more than one such mine, of the mine that has the longest estimated life, as at the end of the present income year; or
(b) for an amount of expenditure incurred in carrying on eligible mining operations in the course of petroleum mining—the lesser of 10 and the number equal to the number of whole years in the estimated life of the petroleum field or proposed petroleum field as at the end of the present income year; or
(c) for an amount of expenditure incurred in carrying on eligible quarrying operations—the lesser of 20 and the number equal to the number of whole years in the estimated life of the quarry, or proposed quarry, on the quarrying property, or, if there is more than one such quarry, of the quarry that has the longest estimated life, as at the end of the present income year.
(a) any of the expenditure referred to in subsection (1) relates to property that is not a depreciating asset (the other property);
(b) in an income year (the cessation year), the other property is disposed of, lost or destroyed, or you stop using it for a taxable purpose;
there is an additional decline in value of the notional asset for the cessation year equal to so much of the notional asset’s adjustable value as relates to the other property.
(6) If the other property is disposed of, lost or destroyed, or you stop using it for a taxable purpose, you must include in your assessable income:
(a) if the other property is sold for a price specific to that property—that price, less the expenses of the sale (to the extent the expenses are reasonably attributable to selling that particular property); or
(b) if the other property is sold with additional property without a specific price being allocated to it—the part of the total sale price, less the reasonably attributable expenses of the sale, that is reasonably attributable to selling the other property; or
(c) if the other property is lost or destroyed—the amount or value received or receivable under an insurance policy or otherwise for the loss or destruction; or
However, the amount included is reduced to the extent (if any) that it is also included under subsection 40‑830(6) of the new Act.
## 40‑38 Mining cash bidding payments 40‑38 Mining cash bidding payments
(i) you incurred the expenditure before that day but the grant of the mining authority concerned occurred on a day (the start day) after 30 June 2001; or
(ii) the grant of the mining authority concerned occurred before 30 June 2001 but you incurred the expenditure on a day (also the start day) after 30 June 2001.
(2) Division 40 of the new Act applies to the expenditure as if it were a depreciating asset (the notional asset) you hold on this basis:
(b) in applying the formula in section 40‑75 of the new Act for the income year in which the start day occurs—you use the adjustments in subsection 40‑75(3) of the new Act; and
(3) The effective life of the notional asset at the start of an income year (present income year) for which you are working out its decline in value is:
(a) for an amount of expenditure incurred in carrying on eligible mining operations other than in the course of petroleum mining—the lesser of 10 and the number equal to the number of whole years in the estimated life of the mine, or proposed mine, on the mining property, or, if there is more than one such mine, of the mine that has the longest estimated life, as at the end of the present income year; or
(b) for an amount of expenditure incurred in carrying on eligible mining operations in the course of petroleum mining—the lesser of 10 and the number equal to the number of whole years in the estimated life of the petroleum field or proposed petroleum field as at the end of the present income year.
there is an additional decline in value of the notional asset for the cessation year equal to so much of the notional asset’s adjustable value as relates to the real asset and has not been taken into account in working out the amount of a balancing adjustment in relation to the real asset.
(6) If section 40‑115 of the new Act applies, or section 40‑125 of the new Act would, apart from this subsection, apply, to the real asset referred to in subsection (5) of this section, then:
(a) if the real asset is split into 2 or more depreciating assets and you stop holding, or stop using for a taxable purpose, one or more but not all of the assets into which it is split—subsection (5) does not apply to that asset or assets into which it is split that you continue to hold and continue to use for a taxable purpose; or
(b) if the real asset is merged into another depreciating asset—section 40‑125 does not apply to the asset into which it is merged while you continue to hold it.
## 40‑40 Transport expenditure 40‑40 Transport expenditure
(1) This section applies to you if you have deducted or can deduct an amount for transport capital expenditure in respect of a transport facility under Subdivision 330‑H of the former Act, or you could have deducted an amount for the expenditure under that Subdivision if you had started to use the facility for a qualifying purpose before 1 July 2001.
(2) Division 40 of the new Act applies to the expenditure as if it were a depreciating asset (the notional asset) you hold on this basis:
(a) it has an opening adjustable value at 1 July 2001 equal to the total amount of transport capital expenditure under the former Act less the amounts you have deducted or can deduct for that expenditure under the former Act; and
(c) in applying the formula in section 40‑75 of the new Act for your income year in which 1 July 2001 occurs—you use the adjustments in subsection 40‑75(3) of the new Act; and
(d) it has an effective life at the start of 1 July 2001 equal to the years remaining for the expenditure under section 330‑395 of the former Act; and
(i) any of the transport capital expenditure referred to in subsection (1) relates to a depreciating asset (the real asset);
(i) any of the transport capital expenditure referred to in subsection (1) relates to property that is not a depreciating asset (the other property);
(ii) in the cessation year, the other property is disposed of, lost or destroyed, or you stop using it for a taxable purpose;
there is an additional decline in value of the notional asset for the cessation year equal to so much of the notional asset’s adjustable value as relates to the real asset or the other property and has not been taken into account in working out the amount of a balancing adjustment in relation to the real asset.
(5) If the other property is disposed of, lost or destroyed, or you stop using it for a taxable purpose, you must include in your assessable income:
(a) if the other property is sold for a price specific to that property—that price, less the expenses of the sale (to the extent the expenses are reasonably attributable to selling that particular property); or
(b) if the other property is sold with additional property without a specific price being allocated to it—the part of the total sale price, less the reasonably attributable expenses of the sale, that is reasonably attributable to selling the other property; or
(c) if the other property is lost or destroyed—the amount or value received or receivable under an insurance policy or otherwise for the loss or destruction; or
However, the amount included is reduced to the extent (if any) that it is also included under subsection 40‑830(6) of the new Act.
(6) If section 40‑115 of the new Act applies, or section 40‑125 of the new Act would, apart from this subsection, apply, to the real asset referred to in subsection (4) of this section, then:
(a) if the real asset is split into 2 or more depreciating assets and you stop holding, or stop using for a taxable purpose, one or more but not all of the assets into which it is split—subsection (4) does not apply to that asset or assets into which it is split that you continue to hold and continue to use for a taxable purpose; or
(b) if the real asset is merged into another depreciating asset—section 40‑125 does not apply to the asset into which it is merged while you continue to hold it.
## 40‑43 Post‑30 June 2001 transport expend 40‑43 Post‑30 June 2001 transport expenditure
(b) the expenditure would have been transport capital expenditure in respect of a transport facility, and you could have deducted an amount for it, under Subdivision 330‑H of the former Act if you had incurred it before 1 July 2001 and you had started to use the facility for a qualifying purpose before 1 July 2001; and
(2) Division 40 of the new Act applies to the expenditure as if it were a depreciating asset (the notional asset) you hold on this basis:
(b) in applying the formula in section 40‑75 of the new Act for your income year in which you incur the expenditure—you use the adjustments in subsection 40‑75(3) of the new Act; and
(d) it has an effective life when you incur the expenditure equal to the years remaining for the expenditure under section 330‑395 of the former Act; and
(a) any of the expenditure referred to in subsection (1) relates to property that is not a depreciating asset (the other property);
(b) in an income year (the cessation year), the other property is disposed of, lost or destroyed, or you stop using it for a taxable purpose;
there is an additional decline in value of the notional asset for the cessation year equal to so much of the notional asset’s adjustable value as relates to the other property.
(5) If the other property is disposed of, lost or destroyed, or you stop using it for a taxable purpose, you must include in your assessable income:
(a) if the other property is sold for a price specific to that property—that price, less the expenses of the sale (to the extent the expenses are reasonably attributable to selling that particular property); or
(b) if the other property is sold with additional property without a specific price being allocated to it—the part of the total sale price, less the reasonably attributable expenses of the sale, that is reasonably attributable to selling the other property; or
(c) if the other property is lost or destroyed—the amount or value received or receivable under an insurance policy or otherwise for the loss or destruction; or
However, the amount included is reduced to the extent (if any) that it is also included under subsection 40‑830(6) of the new Act.
## 40‑44 No additional decline in certain c 40‑44 No additional decline in certain cases
(1) Despite subsections 40‑35(5), 40‑38(5) and 40‑40(4), there is no additional decline in the value of the notional asset referred to in those subsections if:
(a) apart from this section, subsection 40‑35(5), 40‑38(5) or 40‑40(4) would apply because the real asset referred to in that subsection is disposed of; and
## 40‑45 Intellectual property 40‑45 Intellectual property
(a) at the end of 30 June 2001, you hold an item of intellectual property referred to in the table in section 373‑35 of the former Act; and
(b) you have deducted or can deduct an amount for expenditure on the asset under Division 373 of the former Act or you could have deducted an amount under that Division for that expenditure if you had used the asset for the purpose of producing assessable income on or before that day.
(a) it has an opening adjustable value at 1 July 2001 equal to its unrecouped expenditure under the former Act at the end of 30 June 2001; and
## 40‑47 IRUs 40‑47 IRUs
(1) Division 40 of the new Act does not apply to an IRU to the extent to which expenditure on the IRU was incurred at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999 (the IRU time).
(2) Division 40 of the new Act does not apply to an IRU over an international telecommunications submarine cable system if the system had been used for telecommunications purposes at or before the IRU time.
## 40‑50 Forestry roads and timber mill bui 40‑50 Forestry roads and timber mill buildings
(a) you have deducted or can deduct an amount under Subdivision 387‑G of the former Act for an amount (the qualifying amount) of expenditure on a forestry road or timber mill building or could have deducted an amount under that Subdivision if you had used the road or building for the purpose of producing assessable income; and
(a) it has an opening adjustable value at 1 July 2001 equal to the qualifying amount less any amounts you have deducted or can deduct for it under the former Act; and
(b) in applying the formula in section 40‑75 of the new Act for your income year in which 1 July 2001 occurs—you use the adjustments in subsection 40‑75(3) of the new Act; and
(e) you can recalculate its effective life if you conclude that your estimate is no longer accurate (except that the effective life cannot exceed 25 years); and
## 40‑55 Environmental impact assessment 40‑55 Environmental impact assessment
(1) This section applies to you if you have deducted or can deduct an amount under Subdivision 400‑A of the former Act for an amount (the qualifying amount) of expenditure on or before 30 June 2001 on evaluating the impact on the environment of a project under Subdivision 400‑A of the former Act.
(a) it has an opening adjustable value at 1 July 2001 equal to the qualifying amount less any amounts you have deducted or can deduct for it under the former Act or the Income Tax Assessment Act 1936; and
(c) it has an effective life equal to the number of years for which you could deduct for the qualifying amount worked out under subsection 400‑15(3) of the former Act; and
## 40‑60 Pooling under Subdivision 42‑L of 40‑60 Pooling under Subdivision 42‑L of the former Act
(1) Units of plant that you had allocated to a pool under Subdivision 42‑L of the former Act and that were allocated to the pool by 30 June 2001 are treated as a single depreciating asset for the purposes of Division 40 of the new Act.
(a) its cost and opening adjustable value at 1 July 2001 is the closing balance of the pool for your income year in which 30 June 2001 occurred; and
(c) in applying the formula in section 40‑70 of the new Act for your income year in which 1 July 2001 occurs—it has a base value equal to that opening adjustable value; and
(d) you replace the component in the formula in subsection 40‑70(1) of the new Act that includes an asset’s effective life with the pool percentage you were using for the pool; and
(e) if an item of plant is removed from the pool because a balancing adjustment event occurs for the item or because of subsection (3) of this section, section 40‑115 of the new Act applies so that you are treated as having split the single depreciating asset into the removed asset and the remaining assets in the pool; and
(f) if an amount is included in the second element of the cost of a depreciating asset in the pool, Division 40 of the new Act applies as if that amount had been included in the second element of the cost of the single asset.
(3) An item of plant in the pool is automatically removed from the pool if you stop using it wholly for taxable purposes (except because a balancing adjustment event occurs for the item).
> Note 1: You work out the decline in value of an item removed under this subsection under Subdivision 40‑B of the new Act, using the cost for it worked out under section 40‑205 of the new Act.
## 40‑65 Substituted accounting periods 40‑65 Substituted accounting periods
(b) because of a provision of this Subdivision, uses Division 40 of the new Act to work out the decline in value of an asset, or of something that is treated as an asset.
(2) The entity works out its deductions for its income year that includes 1 July 2001 (the calculation year) in this way:
(a) the entity works out its deductions for that asset under the former Act as from the start of its calculation year up to the end of 30 June 2001 as if that period were an income year; and
(b) the entity works out the decline in value of the asset under Division 40 of the new Act from 1 July 2001 until the end of its calculation year as if that period were an income year in accordance with the following provisions of this section.
(a) for a unit of plant (including IRUs and expenditure on software that is not pooled)—its undeducted cost at the end of 30 June 2001; or
(b) for expenditure on eligible mining or quarrying operations, an item of intellectual property or a spectrum licence—the amount of unrecouped expenditure for the expenditure, item or licence under the former Act at the end of 30 June 2001 reduced, in the case of eligible mining or quarrying operations, by an amount you have deducted or can deduct for the calculation year under the former Act and not yet taken into account in calculating unrecouped expenditure; or
(c) for transport capital expenditure—the entity’s amount of transport capital expenditure under the former Act at the end of 30 June 2001 less any amounts the entity has deducted or can deduct for it under the former Act up to that time; or
(d) for expenditure on a forestry road, a timber mill building, a horticultural plant or a grapevine—the amount of that expenditure less any amounts the entity has deducted or can deduct for it under the former Act up to 30 June 2001; or
(e) for expenditure on evaluating the impact on the environment of a project—the amount of that expenditure less any amounts the entity has deducted or can deduct for it under the former Act up to 30 June 2001; or
(f) for assets that were pooled under Subdivision 42‑M or 42‑L of the former Act—the closing balance of the pool at the end of 30 June 2001.
(4) The asset’s base value for applying the formula in section 40‑70 of the new Act for the diminishing value method is that opening adjustable value.
(5) The decline in value for the assets referred to in this subsection is worked out using the prime cost method without the adjustments in subsection 40‑75(3) of the new Act, and the opening adjustable value specified in subsection (3) of this section, in this way:
(a) for an item of plant for which you were using the prime cost method—using the rules in section 40‑10 of this Act; and
(c) for a unit of software for which the entity was deducting amounts under Subdivision 46‑B of the former Act—using the rules in subsection 40‑25(2) of this Act; and
(f) for an amount of expenditure on evaluating the impact on the environment of a project—using the rules in section 40‑55 of this Act.
(6) The decline in value for the assets referred to in this subsection is worked out using the prime cost method using the adjustments in subsection 40‑75(3) of the new Act, and the opening adjustable value specified in subsection (3) of this section, in this way:
(a) for an amount of unrecouped expenditure under Division 330 of the former Act—using the rules in section 40‑35 of this Act; and
(b) for an amount of transport capital expenditure under Division 330 of the former Act—using the rules in section 40‑40 of this Act; and
(7) The entity must work out the decline in value of each of the assets for later income years under Division 40 of the new Act.
(a) allowable capital expenditure for which the entity had deducted or can deduct an amount under Subdivision 330‑C of the former Act; or
(b) transport capital expenditure for which the entity had deducted or can deduct an amount under Subdivision 330‑H of the former Act; or
(c) a water facility for which the entity had deducted or can deduct an amount under Subdivision 387‑B of the former Act; or
(d) expenditure on connecting power to land or upgrading the connection for which the entity had deducted or can deduct an amount under Subdivision 387‑E of the former Act; or
(e) expenditure on a telephone line on or extending to land for which the entity had deducted or can deduct an amount under Subdivision 387‑E of the former Act;
reduce its deductions for each of the periods referred to in paragraphs (2)(a) and (b) by multiplying the deduction for that period by the number of days in that period and dividing the result by 365.
(9) The entity cannot deduct anything for an asset referred to in this section under the former Act for any part of its calculation year after 30 June 2001.
(10) You are entitled to a further deduction for a depreciating asset for which you are using the diminishing value method if the sum of the deductions worked out under paragraphs (2)(a) and (b) (the sum amount) is less than the deduction to which you would have been entitled for the asset if the former Act had continued to apply to the whole of the calculation year (the former Act amount).
(11) You increase the amount worked out under paragraph (2)(b) by the difference between the former Act amount and the sum amount.
## 40‑67 Methods for working out decline in 40‑67 Methods for working out decline in value
(1) Subsections 40‑65(6) and (7) of the Income Tax Assessment Act 1997 apply with the changes set out in this section if either or both of the following events have happened:
(b) you could have deducted one or more amounts under that former section for the asset if you had not chosen tax offsets under former section 73I of that Act.
(a) paragraph 40‑65(6)(a) of the Income Tax Assessment Act 1997 included both events set out in subsection (1) of this section; and
(b) subsections 40‑65(6) and (7) of that Act deal with all 4 kinds of events in a corresponding way to the way that they deal with 2 kinds of events.
## 40‑70 References to amounts deducted and 40‑70 References to amounts deducted and reductions in deductions
(1) A reference in the new Act to an amount that you have deducted or can deduct for a depreciating asset under Division 40 of the new Act includes a reference to an amount that you have deducted or can deduct for a capital allowance relating to the asset under the former Act or the Income Tax Assessment Act 1936.
(2) An amount you have deducted or can deduct for a water facility under Subdivision 387‑B of the former Act or former section 75B of the Income Tax Assessment Act 1936 is taken to have been deducted under Subdivision 40‑F of the new Act.
(3) A reference in the new Act to a reduction in your deduction for a depreciating asset includes a reference to amounts by which your deductions for the asset were reduced under the former Act or the Income Tax Assessment Act 1936.
## 40‑72 New diminishing value method not t 40‑72 New diminishing value method not to apply in some cases
(a) you are taken to start holding a depreciating asset on or after 10 May 2006 because of section 40‑115 (about splitting a depreciating asset) or 40‑125 (about merging depreciating assets) of the Income Tax Assessment Act 1997; and
(b) it is reasonable to conclude that you split the asset or merged the assets for the main purpose of ensuring that the decline in value of the asset or assets (after the splitting or merging) would be worked out under section 40‑72 of that Act;
(2) The Income Tax Assessment Act 1997 applies to you as if you had started to hold a depreciating asset before 10 May 2006 if:
(c) it is reasonable to conclude that you did this for the main purpose of ensuring that the decline in value of the asset would be worked out under section 40‑72 of that Act.
(3) The Income Tax Assessment Act 1997 applies to you as if you had started to hold a depreciating asset (the substituted asset) before 10 May 2006 if:
(b) the substituted asset is identical to or has a purpose similar to another depreciating asset that another entity acquired from you on or after that day under that arrangement; and
(d) it is reasonable to conclude that you entered into the arrangement for the main purpose of ensuring that the decline in value of the substituted asset would be worked out under section 40‑72 of that Act.
## 40‑75 Mining expenditure incurred after 40‑75 Mining expenditure incurred after 1 July 2001 on an asset
(a) you hold a depreciating asset (except a mining, quarrying or prospecting right that you started to hold before 1 July 2001) that you:
(b) your expenditure on the asset, whenever incurred, would have been allowable capital expenditure, transport capital expenditure or expenditure on exploration or prospecting within the meaning of Division 330 of the former Act if it had been incurred before 1 July 2001.
(2) If you incur expenditure on the asset after 30 June 2001 that forms part of the cost of the asset, you can deduct the expenditure for the income year in which you incur it if it would have been expenditure on exploration or prospecting within the meaning of Division 330 of the former Act.
(3) Otherwise, Subdivision 40‑B of the new Act applies to the asset on the basis that it has a cost, and an adjustable value, of zero at the start of 1 July 2001, and an effective life on that day or at its start time, whichever is the later, worked out under subsection (4) of this section.
(a) if the expenditure on the asset was incurred in relation to eligible mining operations other than in the course of petroleum mining—the shorter of:
(ii) the number of whole years in the estimated life of the mine or proposed mine to which the expenditure relates or, if there is more than one such mine, of the mine that has the longest estimated life; or
(b) if the expenditure on the asset was incurred in relation to eligible mining operations in the course of petroleum mining—the shorter of:
(ii) the number of whole years in the estimated life of the petroleum field or proposed petroleum field to which the expenditure relates; or
(ii) the number of whole years in the estimated life of the quarry or proposed quarry to which the expenditure relates or, if there is more than one such quarry, of the quarry that has the longest estimated life.
## 40‑77 Mining, quarrying or prospecting r 40‑77 Mining, quarrying or prospecting rights or information held before 1 July 2001
(1) Division 40 of the new Act does not apply to a mining, quarrying or prospecting right that you started to hold before 1 July 2001.
> Note: If you incur expenditure relating to assets of that kind, you cannot deduct it under Division 40\. However, the expenditure may be taken into account in calculating a capital gain or capital loss under Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997.
(1A) Division 40 of the new Act does not apply to a renewal or extension of a mining, quarrying or prospecting right that you started to hold before 1 July 2001.
(1B) Subsection (1) applies to a mining, quarrying or prospecting right (the new right) that you start to hold on or after 1 July 2001 as if you had started to hold the new right before that day if:
(i) the other company is a member of the same wholly‑owned group as the original holder and was a member of that group just before that day; and
(ii) the right was held in the period between that day and the time of the transfer by a company or companies that were members of that group on that day and at the time of the transfer.
(1D) Division 40 of the new Act does not apply to an interest in a mining, quarrying or prospecting right that you started to hold on or after 1 July 2001 if:
(b) the interest was acquired in exchange for one or more other interests in other mining, quarrying or prospecting rights all of which you had started to hold before 1 July 2001.
(a) you acquired, under an interest realignment arrangement, an interest (a new interest) in a mining, quarrying or prospecting right; and
(b) the interest was acquired in exchange for one or more other interests (old interests) in other mining, quarrying or prospecting rights; and