Commonwealth of Australia Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.5

             (1)  You have a financial arrangement if you have one or more cash settlable legal or equitable rights and/or obligations to receive or provide a financial benefit.

             (2)  This Division does not apply to all financial arrangements. The main exceptions are if:

                     (a)  you are:

                              (i)  an individual; or

                             (ii)  a superannuation entity or fund, managed investment scheme or an entity substantially similar to a managed investment scheme under foreign law with assets of less than $100 million; or

                            (iii)  an ADI, securitisation vehicle or other financial sector entity with an aggregated turnover of less than $20 million; or

                            (iv)  another entity with an aggregated turnover of less than $100 million, financial assets of less than $100 million and assets of less than $300 million;

                            and either:

                            (iv)  the arrangement is to end not more than 12 months after you start to have it; or

                             (v)  the arrangement is not a qualifying security; or

                     (b)  the arrangement is a financial arrangement under section 230-50 (equity interests etc.) and neither a fair value election, a hedging financial arrangement election nor an election to rely on financial reports applies to the arrangement.

Note:          Section 230- 455 provides for the exceptions referred to in paragraph (a).

Table of sections

Objects

230-10      Objects of this Division

Tax treatment of gains and losses from financial arrangements

230-15      Gains are assessable and losses deductible

230-20      Gain or loss to be taken into account only once under this Act

230-25      Associated financial benefits to be taken into account only once under this Act

230-30      Treatment of gains and losses related to exempt income and non-assessable non-exempt income

230-35      Treatment of gains and losses of private or domestic nature

Method to be applied to take account of gain or loss

230-40      Methods for taking gain or loss into account

Financial arrangement concept

230-45      Financial arrangement

230-50      Financial arrangement (equity interest or right or obligation in relation to equity interest)

230-55      Rights, obligations and arrangements (grouping and disaggregation rules)

General rules

230-60      When financial benefit provided or received under financial arrangement

230-65      Amount of financial benefit relating to more than one financial arrangement etc.

230-70      Apportionment when financial benefit received or right ceases

230-75      Apportionment when financial benefit provided or obligation ceases

230-80      Consistency in working out gains or losses (integrity measure)

230-85      Rights and obligations include contingent rights and obligations

Objects