Commonwealth Consolidated Acts Commonwealth Consolidated ActsAct No. 27 of 1936 as amended
This compilation was prepared on 1
January 2012
taking into account amendments up to Act No. 159 of 2011
Volume 1 includes: Table of Contents
Sections 1 - 78A
The text of any of those amendments
not in force
on that date is appended in the Notes section
The operation of amendments that
have been incorporated may be
affected by application provisions that are set out in the Notes section
Volume
2 includes: Table of
Contents
Sections 79A - 121L
Volume
3 includes: Table of
Contents
Sections 124ZM - 202G
Volume
4 includes: Table of
Contents
Sections 251R - 468
Volume
5 includes: Table of
Contents
Schedules 2, 2D, 2F and 2H
Volume
6 includes: Note 1
Table of Acts
Act Notes
Table of Amendments
Volume 7
includes: Repeal Table
Notes 2 - 6
Tables A and B
Prepared by the Office of Legislative Drafting and
Publishing,
Attorney-General's Department, Canberra
Contents
Part I--Preliminary 1
1............ Short title [see Note 1]........................................................................ 1
6............ Interpretation....................................................................................... 1
6AA...... Certain sea installations and offshore areas to be treated as part of Australia 29
6A......... Provisions relating to cessation of superannuation benefits.............. 31
6AB...... Foreign income and foreign tax......................................................... 32
6B......... Income beneficially derived............................................................... 34
6BA...... Taxation treatment of certain shares.................................................. 35
6C......... Source of royalty income derived by a non-resident......................... 37
6CA...... Source of natural resource income derived by a non-resident........... 40
6D......... Some tax offsets under the 1997 Assessment Act are treated as credits 41
6F.......... Dual resident investment company.................................................... 41
6H......... Recognised small credit unions, recognised medium credit unions and recognised large credit unions 43
7A......... Application of Act in relation to certain Territories........................... 45
7B......... Application of the Criminal Code..................................................... 45
Part II--Administration 46
8............ Commissioner................................................................................... 46
14.......... Annual report.................................................................................... 46
Part III--Liability to taxation 47
Division 1--General 47
18.......... Accounting period............................................................................. 47
18A....... Accounting periods for VCLPs, ESVCLPs, AFOFs and VCMPs.. 47
21.......... Where consideration not in cash........................................................ 48
21A....... Non-cash business benefits............................................................... 48
23AA.... Income of persons connected with certain projects of United States Government 51
23AB.... Income of certain persons serving with an armed force under the control of the United Nations 55
23AC.... Exemption of pay and allowances of members of Defence Force serving in operational areas 60
23AD.... Exemption of pay and allowances of Defence Force members performing certain overseas duty 64
23AF..... Exemption of certain income derived in respect of approved overseas projects 66
23AG.... Exemption of income earned in overseas employment...................... 74
23AH.... Foreign branch income of Australian companies not assessable....... 80
23AI...... Amounts paid out of attributed income not assessable...................... 85
23AJ..... Certain non-portfolio dividends from foreign countries not assessable 86
23AK.... Amounts paid out of attributed foreign investment fund income not assessable 87
23B....... Reduction of disposal consideration if FIF attributed income not distributed 90
23E........ Redemption of Special Bonds redeemable at a premium................... 91
23G....... Exemption of interest received by credit unions................................ 92
23J........ Sale of securities purchased at a discount.......................................... 93
23K....... Substitution of certain securities........................................................ 94
23L........ Certain benefits in the nature of income not assessable..................... 96
Division 1AB--Certain State/Territory bodies exempt from income tax 97
Subdivision A--Exemption for certain State/Territory bodies 97
24AK.... Key principle..................................................................................... 97
24AL..... Diagram--guide to work out if body is exempt under this Division. 97
24AM... Certain STBs exempt from tax.......................................................... 98
24AN.... Certain STBs not exempt from tax under this Division..................... 98
24AO.... First way in which a body can be an STB......................................... 99
24AP..... Second way in which a body can be an STB.................................... 99
24AQ.... Third way in which a body can be an STB....................................... 99
24AR.... Fourth way in which a body can be an STB..................................... 99
24AS..... Fifth way in which a body can be an STB...................................... 100
24AT..... What do excluded STB, government entity and Territory mean?..... 100
24AU.... Governor, Minister and Department Head taken to be a government entity 101
24AV.... Regulations prescribing excluded STBs.......................................... 101
Subdivision B--Body ceasing to be an STB 101
24AW... Body ceasing to be an STB............................................................. 101
24AX.... Special provisions relating to capital gains and losses..................... 102
24AY.... Losses from STB years not carried forward................................... 103
24AYA. Effect of unfunded superannuation liabilities.................................. 104
24AZ..... Meaning of period and prescribed excluded STB........................... 105
Division 1A--Provisions relating to certain External Territories 106
24B....... Interpretation................................................................................... 106
24C....... Territory resident............................................................................. 107
24D....... Territory company........................................................................... 107
24E........ Territory trusts................................................................................ 109
24F........ Exemption from tax of certain income derived from sources outside Australia 111
24G....... Exemption from tax of certain income derived from sources in a prescribed Territory 112
24H....... When income to be taken to be applied for benefit of a person....... 113
24J........ Source of dividends........................................................................ 114
24K....... Source of income from employment............................................... 116
24L........ Source of interest or royalty............................................................ 117
24M...... Certain income deemed not to be derived from sources in a prescribed Territory or outside Australia 120
24P........ Transitional capital gains tax provisions for certain Cocos (Keeling) Islands assets 120
Division 2--Income 122
Subdivision A--Assessable income generally 122
25A....... Assessable income to include certain profits................................... 122
26AB.... Assessable income--premium for lease.......................................... 129
26AF..... Assessable income to include value of benefits received from or in connection with former paragraph 23(ja) funds or former section 23FB funds............................................................. 131
26AFA.. Assessable income to include value of certain benefits received from or in connection with former section 23F funds........................................................................................................ 134
26AG.... Certain film proceeds included in assessable income...................... 136
26AH.... Bonuses and other amounts received in respect of certain short-term life assurance policies 143
26AJ..... Investment-related lottery winnings to be included in assessable income 148
26BB..... Assessability of gain on disposal or redemption of traditional securities 156
26BC..... Securities lending arrangements...................................................... 158
26C....... Disposal of certain securities........................................................... 170
26E........ Income from RSAs......................................................................... 171
27.......... Interest on loans raised in Australia by governments outside Australia 171
Subdivision AA--Non-superannuation annuities etc. 172
27H....... Assessable income to include annuities and superannuation pensions 172
Subdivision D--Dividends 176
43A....... Subdivision has effect subject to provisions of Division 216 of the Income Tax Assessment Act 1997 176
43B....... Application of Subdivision to non-share dividends........................ 176
44.......... Dividends........................................................................................ 176
45.......... Streaming of bonus shares and unfranked dividends...................... 178
45A....... Streaming of dividends and capital benefits.................................... 179
45B....... Schemes to provide certain benefits................................................ 181
45BA.... Effect of determinations under section 45B for demerger benefits.. 184
45C....... Effect of determinations under sections 45A and 45B for capital benefits 185
45D....... Determinations under sections 45A, 45B and 45C......................... 186
46FA..... Deduction for dividends on-paid to non-resident owner................. 187
46FB..... Unfranked non-portfolio dividend account..................................... 190
47.......... Distributions by liquidator.............................................................. 191
47A....... Distribution benefits--CFCs.......................................................... 193
Division 3--Deductions 210
Subdivision A--General 210
51AAA. Deductions not allowable in certain circumstances.......................... 210
51AD.... Deductions not allowable in respect of property used under certain leveraged arrangements 211
51AEA.. Meal entertainment--election under section 37AA of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method............................................................................................ 223
51AEB.. Meal entertainment--election under section 37CA of Fringe Benefits Tax Assessment Act 1986 to use the 12 week register method................................................................................ 223
51AEC.. Entertainment facility--election under section 152B of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method............................................................................................ 224
51AF..... Car expenses incurred by employee................................................ 224
51AGA. No deduction to employee for certain car parking expenses............ 225
51AH.... Deductions not allowable where expenses incurred by employee are reimbursed 226
51AJ..... Deductions not allowable for private component of contributions for fringe benefits etc. 227
51AK.... Agreements for the provision of non-deductible non-cash business benefits 229
52.......... Loss on property acquired for profit-making.................................. 230
52A....... Certain amounts disregarded in ascertaining taxable income........... 232
63.......... Bad debts........................................................................................ 238
63D....... Bad debts etc. of money-lenders not allowable deductions where attributable to listed country or unlisted country branches.......................................................................................... 238
63E........ Debt/equity swaps........................................................................... 240
63F........ Limit on deductions where debt write offs and debt/equity swaps occur 242
63G....... Bad debts etc. of trust not allowable in certain circumstances......... 243
65.......... Payments to associated persons and relatives.................................. 244
70B....... Deduction for loss on disposal or redemption of traditional securities 245
73A....... Expenditure on scientific research................................................... 248
73AA.... Section 73A roll-over relief in the case of certain CGT roll-overs.. 252
78A....... Certain gifts not to be allowable deductions.................................... 254