Income Tax Assessment Act 1997

s 43-85 — Pools of construction expenditure

(1) A pool of construction expenditure is so much of the * construction expenditure incurred by an entity on capital works as is attributable to the * construction expenditure area. (2) In applying subsection (1) in a case to which subsection 43 ‑ 75(3) (dealing with purchases from speculative builders) applies, assume that the expenditure incurred by the other entity was capital expenditure, but that the limitations in subsection 43 ‑ 70(2) (which sets out types of expenditure that are not * construction expenditure) still apply to the other entity’s expenditure. Note: The builder’s profit margin does not form part of the construction expenditure of the purchaser.

s 43-90 — Table of intended use at time of completion of construction

Column 1 Date capital works begin Column 2 Type of capital works Column 3 Intended use on completion Time period 1: 22/8/79 to 19/7/82 (inclusive) Hotel building For use by any entity wholly or mainly to operate a hotel, motel or guest house that has at least 10 bedrooms that are for use wholly or mainly to provide short ‑ term accommodation for travellers. Apartment building The building consisted of: (a) at least 10 apartments, units or flats each of which was for use wholly or mainly to provide short ‑ term accommodation for travellers; or (b) at least 10 apartments, units or flats each of which was for use for that purpose and facilities that are wholly or mainly for use in association with providing short ‑ term accommodation for travellers in those apartments, units or flats. Time period 2: 20/7/82 to 17/7/85 (inclusive) Hotel building As for time period 1. Apartment building As for time period 1. Non ‑ residential building For: (a) use by the entity that incurred the expenditure for the * purpose of producing assessable income or exempt income; or (b) disposal by that entity to another entity for use by the other entity for the purpose of producing assessable income or exempt income. Time period 3: 18/7/85 to 20/11/87 (inclusive) Any building For: (a) use by the entity that incurred the expenditure for the * purpose of producing assessable income or exempt income; or (b) disposal by that entity to another entity for use by the other entity for the purpose of producing assessable income or exempt income; or (c) use by an entity wholly or mainly for, or in association with, residential accommodation. Time period 4: 21/11/87 to 26/2/92 (inclusive) Any building For: (a) use by the entity that incurred the expenditure for the * purpose of producing assessable income or exempt income; or (b) disposal by that entity to another entity for use by the other entity for the purpose of producing assessable income or exempt income; or (c) use by an entity wholly or mainly for, or in association with, residential accommodation; or (d) use by the entity that incurred the expenditure to carry on research and development activities (within the meaning of former section 73B of the Income Tax Assessment Act 1936 ) by or for that entity, or for disposal by that entity to another entity for use by the other entity for carrying on research and development activities (within the meaning of that former section) by or for the other entity. Time period 5: 27/2/92 to 18/8/92 (inclusive) Hotel building As for time period 1. Apartment building As for time period 1. Other buildings As for any building in time period 4. Structural improvements As for any building in time period 4. Time period 6: 19/8/92 to 30/6/97 (inclusive) Hotel building As for time period 1. Apartment building As for time period 1. Other buildings As for any building in time period 4. Structural improvements As for any building in time period 4. Environment protection earthworks As for any building in time period 4. Note: There are special rules that explain or qualify the uses described in Column 3 of this Table. These rules are set out in Subdivision 43 ‑ E (sections 43 ‑ 155 to 43 ‑ 195). For example, certain facilities that are not commonly provided in a hotel, motel or guest house in Australia are taken not to be used or for use to operate a hotel, motel or guest house, see subsection 43 ‑ 180(6).

Amendment history: Amended by No 93 of 2011, effective Schedule 1, Schedule 3 (items 1–4, 15–42, 54–107) and Schedule 4 (items 1–9): Royal Assent

s 43-95 — Meaning of hotel building and apartment building

(1) A hotel building is: (a) a building begun after 21 August 1979 and before 18 July 1985, or after 26 February 1992 and before 1 July 1997, that, at the time of completion of its construction, was intended to be used in the way referred to in Column 3 of Table 43 ‑ 90 (intended use at completion) for a hotel building; or (b) a building begun after 30 June 1997 and that, in the income year, is used in the way referred to in Column 3 (time period 2) of Table 43 ‑ 145 (use in the 4% manner) for a hotel building. (2) An apartment building is: (a) a building begun after 21 August 1979 and before 18 July 1985, or after 26 February 1992 and before 1 July 1997, that, at the time of completion of its construction, was intended to be used in the way referred to in Column 3 of Table 43 ‑ 90 for an apartment building; or (b) a building begun after 30 June 1997 and that, in the income year, is used in the way referred to in Column 3 (time period 2) of Table 43 ‑ 145 for an apartment building.

s 43-100 — Certificates by Industry Innovation and Science Australia

A certificate by * Industry Innovation and Science Australia stating that activities carried on by or for an entity were or were not * core R&D activities or * supporting R&D activities is conclusive for the purposes of this Division. Note: Core R&D activities and supporting R&D activities are kinds of R&D activities.

Amendment history: Amended by No 164 of 2007, effective s. 4, Schedule 1 (items 1–24, 36–67, 71), Schedules 2–6, Schedule 7 (items 1–3, 5–12, 14), Schedule 8 (items 6–13), Schedule 9 and Schedule 10 (items 1, 7–25, 91, 92): Royal Assent Schedule 10 (items 57–88): 1 July 2010 Sch 12 (items 72–87): 27 Sept 2007 (s 2(1) item 9) | Amended by No 93 of 2011, effective Schedule 1, Schedule 3 (items 1–4, 15–42, 54–107) and Schedule 4 (items 1–9): Royal Assent | Amended by No 63 of 2016, effective Sch 1 (item 40): 20 Oct 2016 (s 2(1) item 1) | Amended by No 101 of 2021, effective Sch 1 (item 3): 11 Sept 2021 (s 2(1) item 1)

s 43-105 — What this Subdivision is about

This Subdivision explains your area and your construction expenditure . Table of sections 43 ‑ 110 Explanatory material Operative provisions 43 ‑ 115 Your area and your construction expenditure—owners 43 ‑ 120 Your area and your construction expenditure—lessees and quasi ‑ ownership right holders 43 ‑ 125 Lessees’ or right holders’ pools can revert to owner 43 ‑ 130 Identifying your area on acquisition or disposal

s 43-110 — Explanatory material

You can only get a deduction under this Division for an income year if you own, lease or hold part of a construction expenditure area of capital works. The area you own, lease or hold is called your area . In working out your deductions, you must identify your area for each construction expenditure area of the capital works. Your area may comprise the whole of the construction expenditure area or part of it. Note: In certain circumstances the notional buyer of property is taken to be its owner (see subsection 240 ‑ 20(2)).

Amendment history: Amended by No 16 of 1998, effective s 4, Sch 3–5, Sch 10 (items 1–19) and Sch 11: 16 Apr 1998 (s 2(1)) | Amended by No 72 of 2001, effective 30 June 2001

s 43-115 — Your area and your construction expenditure—owners

(1) Your area is the part of the * construction expenditure area that you own. (2) Your construction expenditure is the portion of the * pool of construction expenditure that is attributable to your area.

s 43-120 — Your area and your construction expenditure—lessees and quasi ‑ ownership right holders

Own expenditure (1) Your area is the part of the * construction expenditure area that you lease, or hold under a * quasi ‑ ownership right over land granted by an * exempt Australian government agency or an * exempt foreign government agency, and that: (a) is attributable to a * pool of construction expenditure that you incurred; and (b) you have continuously leased or held since the construction was completed. Earlier lessees’ or holders’ expenditure (2) Your area is the part of the * construction expenditure area that you lease, or hold under a * quasi ‑ ownership right over land granted by an * exempt Australian government agency or an * exempt foreign government agency, and that: (a) is attributable to a * pool of construction expenditure incurred by another lessee or holder of a quasi ‑ ownership right over land; and (b) has been continuously leased or held since the construction was completed by the lessee or holder who incurred the expenditure or an assignee of that lessee’s lease or that holder’s quasi ‑ ownership right over land. (3) Your construction expenditure is the portion of the * pool of construction expenditure that is attributable to your area.

s 43-125 — Lessees’ or right holders’ pools can revert to owner

(1) An amount that relates to a * pool of construction expenditure that arises as a result of expenditure incurred by a lessee or a holder of a * quasi ‑ ownership right over land: (a) can only be deducted by a lessee or a holder of a quasi ‑ ownership right over land who satisfies subsection 43 ‑ 120(1) or (2); and (b) cannot be deducted by the owner of the capital works while there is a lessee or a holder of a quasi ‑ ownership right over land who satisfies that subsection. (2) The owner of the capital works may deduct an amount that relates to that pool if there is no longer a lessee or a holder of a * quasi ‑ ownership right over land who satisfies subsection 43 ‑ 120(1) or (2).

s 43-130 — Identifying your area on acquisition or disposal

There will be a separate * your area at each time in an income year when you: (a) acquire an additional part of a * construction expenditure area; or (b) dispose of some but not all of a construction expenditure area. Example: You own half of a building (part A) throughout the income year, and you acquire the other half (part B) on 1 January. This section ensures that part A is your area for the entire year and that part B is your area for the second 6 months of the year. Note: This ensures that the same area is not counted twice in calculating your deduction. You will have to make separate deduction calculations if you have identified more than one area as your area of the capital works.

s 43-135 — What this Subdivision is about

You can only get a deduction under this Division if you use your area in a way described in Table 43 ‑ 140 or 43 ‑ 145 of this Subdivision. Table of sections Using your area 43 ‑ 140 Using your area in a deductible way 43 ‑ 145 Using your area in the 4% manner Industrial activities 43 ‑ 150 Meaning of industrial activities Build to rent developments 43 ‑ 151 Meaning of active build to rent development area 43 ‑ 152 Build to rent developments 43 ‑ 153 Build to rent developments—eligibility 43 ‑ 154 Notice of events 43 ‑ 154A References to buildings

s 43-140 — Using your area in a deductible way

(1) The following table sets out the way you must use * your area in an income year for a deduction to be allowed under section 43 ‑ 10 (the main deduction provision). The relevant use depends on the time when the capital works began (Column 1) and the type of capital works (Column 2). Column 3 sets out the use. Table 43 ‑ 140—Current year use Column 1 Date capital works begin Column 2 Type of capital works Column 3 Use of your area at some time in the income year Time period 1: After 30/6/97 Any capital works You use * your area for the purpose of: (a) producing assessable income; or (b) conducting * R&D activities. Time period 2: 27/2/92 to 30/6/97 (inclusive) * Hotel building You use * your area for the * purpose of producing assessable income. * Apartment building You use * your area for the * purpose of producing assessable income. Other capital works You use * your area for the purpose of: (a) producing assessable income; or (b) conducting * R&D activities. Time period 3: Before 27/2/92 * Hotel building You use * your area for the * purpose of producing assessable income and: (a) all or part of that area is used by any entity wholly or mainly to operate a hotel, motel or guest house; and (b) that hotel, motel or guest house has at least 10 bedrooms that are used or available for use wholly to provide short ‑ term accommodation for travellers. * Apartment building You use * your area for the * purpose of producing assessable income and: (a) that area is, is part of or contains an apartment, unit or flat that is used or available for use by any entity wholly to provide short ‑ term accommodation for travellers, and you own or lease at least 9 other apartments, units or flats in the building that are used or available for use by any entity wholly to provide short ‑ term accommodation for travellers; or (b) that area is, is part of or contains a facility that is used or available for use by any entity wholly or mainly in association with providing short ‑ term accommodation for travellers in apartments, units or flats in the building that are used in the way described in paragraph (a). Other capital works You use * your area for the purpose of: (a) producing assessable income; or (b) conducting * R&D activities. Note 1: There are special rules that explain or qualify the uses described in Column 3 of this Table. These rules are set out in Subdivision 43 ‑ E (sections 43 ‑ 155 to 43 ‑ 195). For example: • Your area is taken to be used, for use or available for use for a purpose or in a way if it is maintained ready for use for that purpose or in that way. See section 43 ‑ 160. • R&D activities must be conducted in connection with a business carried on for the purpose of producing assessable income, see section 43 ‑ 195. Note 2: If Division 250 applies to you and an asset that is a capital work: (a) if section 250 ‑ 150 applies—you are taken not to be using the capital work for the purpose of producing assessable income, or for the purpose of conducting R&D activities, to the extent specified under subsection 250 ‑ 150(3); or (b) otherwise—you are taken not to be using the capital work for such a purpose. (2) This Division applies to an entity as if the entity used property for the * purpose of producing assessable income if the entity uses the property for: (a) * environmental protection activities; or (b) the environmental impact assessment of a project; unless a provision of this Act expressly provides that that use is not for the purpose of producing assessable income.

Amendment history: Amended by No 119 of 2002, effective s 4, Sch 1 (items 2–5, 8), Sch 2 and Sch 3 (item 100): 2 Dec 2002 (s 2(1) items 1, 2, 10) Sch 1 (items 6, 7): ( see Sch 10 (item 242) of Act No. 41, 2005) Sch 3 (items 4–78): 30 June 2001 (s 2(1) items 3–8) | Amended by No 164 of 2007, effective s. 4, Schedule 1 (items 1–24, 36–67, 71), Schedules 2–6, Schedule 7 (items 1–3, 5–12, 14), Schedule 8 (items 6–13), Schedule 9 and Schedule 10 (items 1, 7–25, 91, 92): Royal Assent Schedule 10 (items 57–88): 1 July 2010 Sch 12 (items 72–87): 27 Sept 2007 (s 2(1) item 9) | Amended by No 93 of 2011, effective Schedule 1, Schedule 3 (items 1–4, 15–42, 54–107) and Schedule 4 (items 1–9): Royal Assent | Amended by No 15 of 2017, effective Sch 1 (item 1): 1 Mar 2017 (s 2(1) item 2) Sch 2 and Sch 4 (items 26–69, 71–83): 1 Apr 2017 (s 2(1) items 3, 8, 10) Sch 4 (item 70): 19 Mar 2015 (s 2(1) item 9)

s 43-145 — Using your area in the 4% manner

(1) You use a part of * your area in the 4% manner if you use it as described in the following Table. The relevant use depends on the time when the capital works began (Column 1) and the type of capital works (Column 2). Column 3 sets out the use. Table 43 ‑ 145—Use in the 4% manner Column 1 Date capital works begin Column 2 Type of capital works Column 3 Use of a part of * your area at some time in the income year Time period 1: After 30/6/97 Capital works that are buildings You use the part of * your area for the * purpose of producing assessable income and: (a) that part is used by any entity wholly or mainly to operate a hotel, motel or guest house; and (b) that hotel, motel or guest house has at least 10 bedrooms that are used or available for use wholly to provide short ‑ term accommodation for travellers. You use the part of * your area for the * purpose of producing assessable income and: (a) that part is, is part of or contains an apartment, unit or flat that is used or available for use by any entity wholly to provide short ‑ term accommodation for travellers, and you own or lease at least 9 other apartments, units or flats in the building that are used or available for use by any entity wholly to provide short ‑ term accommodation for travellers; or (b) that part is, is part of or contains a facility that is used or available for use by any entity wholly or mainly in association with providing short ‑ term accommodation for travellers in apartments, units or flats in the building that are used in the way described in paragraph (a). You use the part of * your area for the * purpose of producing assessable income, and that part is used by any entity: (a) wholly or mainly for * industrial activities; or (b) to provide meal rooms, rest rooms, first aid rooms, change rooms or similar facilities that are wholly or mainly for use by: (i) workers employed wholly or mainly to undertake the work directly involved in carrying out industrial activities; or (ii) the immediate supervisors of those workers; or (c) wholly or mainly as office accommodation for the immediate supervisors of those workers. You use the part of * your area in the * 4% build to rent manner. Time period 2: 27/2/92 to 30/6/97 (inclusive) * Hotel building You use the part of * your area for the * purpose of producing assessable income and: (a) that part is used by any entity wholly or mainly to operate a hotel, motel or guest house; and (b) that hotel, motel or guest house has at least 10 bedrooms that are used or available for use wholly to provide short ‑ term accommodation for travellers. * Apartment building You use the part of * your area for the * purpose of producing assessable income and: (a) that part is, is part of or contains an apartment, unit or flat that is used or available for use by any entity wholly to provide short ‑ term accommodation for travellers, and you own or lease at least 9 other apartments, units or flats in the building that are used or available for use by any entity wholly to provide short ‑ term accommodation for travellers; or (b) that part is, is part of or contains a facility that is used or available for use by any entity wholly or mainly in association with providing short ‑ term accommodation for travellers in apartments, units or flats in the building that are used in the way described in paragraph (a). Other buildings You use the part of * your area for the * purpose of producing assessable income, and that part is used by any entity: (a) wholly or mainly for * industrial activities; or (b) to provide meal rooms, rest rooms, first aid rooms, change rooms or similar facilities that are wholly or mainly for use by: (i) workers employed wholly or mainly to undertake the work directly involved in carrying out industrial activities; or (ii) the immediate supervisors of those workers; or (c) wholly or mainly as office accommodation for the immediate supervisors of those workers. Note: There are special rules that explain or qualify the uses described in Column 3 of this Table. These rules are set out in Subdivision 43 ‑ E (sections 43 ‑ 155 to 43 ‑ 195). For example: • Your area is taken to be used, for use or available for use for a purpose or in a way if it is maintained ready for use for that purpose or in that way. See section 43 ‑ 160. • A suite of rooms in a hotel building may be treated as one bedroom, see subsection 43 ‑ 180(2). (2) You use a part of * your area in the 4% build to rent manner if: (a) you use the part of your area for the * purpose of producing assessable income; and (b) that part is, or is part of, an * active build to rent development area (the eligible development ); and (c) if the * build to rent compliance period for each of the * dwellings in the eligible development has ended: (i) no other entity is using the eligible development, or any part of the eligible development, for the purpose of producing assessable income; and (ii) at each earlier time (if any) at which you or another entity used the eligible development, or any part of the eligible development, for the purpose of producing assessable income and at which the eligible development was an * active build to rent development, no other entity was using the eligible development, or any part of the eligible development, for the purpose of producing assessable income. (3) For the purposes of paragraph (2)(c), disregard use of the eligible development, or any part of the eligible development, for the * purpose of producing assessable income by providing management services.

Amendment history: Amended by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 43-150 — Meaning of industrial activities

Industrial activities means: (a) any of the following activities ( core activities ): (i) operations where manufactured items are derived from other goods even if those manufactured items are themselves used as parts or materials in the manufacture of other items; (ii) operations (other than packing, placing in containers or labelling) by which manufactured items are brought into or maintained in the form or condition in which they are sold or used, even if they are for sale or use as parts or materials in the manufacture of other items; (iii) the separation of a metal or a compound of a metal from its ore (not including crushing, grinding, breaking, screening or sizing to facilitate that separation) or the treatment or processing of a metal or a compound of a metal after its separation; (iv) for a metal or a compound of a metal not requiring separation—applying to the metal or compound a treatment or process which, if the metal or compound had required separation, would not have been applied until after the separation; (v) refining * petroleum; (vi) scouring or carbonising wool; (vii) milling timber; (viii) freezing primary products; (ix) printing, lithographing or engraving, or a similar process, in the course of carrying on a business as a publisher, printer, lithographer or engraver; (x) curing meat or fish; (xi) producing chilled or frozen meat; (xii) pasteurising milk; (xiii) canning or bottling foodstuffs; (xiv) producing electric current, hydraulic power, steam, compressed air or gases (other than natural gas) for the purpose of sale, or use wholly or mainly in carrying on another activity mentioned in this paragraph; or (b) any of the following activities: (i) the packing, placing in containers or labelling of any goods resulting from the carrying on of core activities; (ii) the disposal of waste substances resulting from the carrying on of core activities; (iii) the cleansing or sterilising of bottles, vats or other containers used by the entity to store goods to be used in carrying on core activities or goods resulting from the carrying on of core activities; (iv) the assembly, maintenance, cleansing, sterilising or repair of property used in carrying on core activities; (v) the storage, within premises in which core activities are carried on, or premises contiguous to those premises, of goods in carrying on core activities, goods in relation to which core activities have commenced but not finally been completed or goods resulting from core activities; but does not include the preparation of food or drink (whether for consumption on the premises where it is prepared or elsewhere) in, or in premises occupied in connection with, a hotel, motel, boarding house, catering establishment, restaurant, cafe, milk ‑ bar, coffee shop, retail shop or similar establishment.

Amendment history: Amended by No 4 of 2007, effective Schedule 1 and Schedule 2 (items 11–16, 26): Royal Assent

s 43-151 — Meaning of active build to rent development area

(1) An active build to rent development area is a part of a building comprising any of the following: (a) the * dwellings of an * active build to rent development; (b) any * common areas for those dwellings. (2) An active build to rent development is a * build to rent development that has: (a) * commenced to be an active build to rent development (see subsections 43 ‑ 152(1) and (2)); and (b) not * ceased to be an active build to rent development (see subsection 43 ‑ 152(4)). (3) A common area for * dwellings of a * build to rent development is an area, facility or amenity: (a) intended for use for the purposes of those dwellings; or (b) intended for use for the purposes of those dwellings and any other dwellings in the same building.

Amendment history: Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 43-152 — Build to rent developments

Commencement (1) On and after the first day on which a building has 50 or more * dwellings: (a) that satisfy subsection 43 ‑ 153(1); and (b) that the owner of the dwellings chooses to form a * build to rent development in accordance with subsection (6) of this section; those dwellings are a build to rent development , of the building, that commences to be an * active build to rent development on that day. (2) Also, on and after the first day (if any): (a) after the most recent instance of a * build to rent development of a building * commencing to be an * active build to rent development; and (b) on which the building has 50 or more * dwellings: (i) that satisfy subsection 43 ‑ 153(1); and (ii) that were not part of a build to rent development just before that day; and (iii) that the owner of the dwellings chooses to form a build to rent development in accordance with subsection (6) of this section; those dwellings are a build to rent development , of the building, that commences to be an active build to rent development on that day unless an active build to rent development * expands under subsection (3) on that day to include the dwellings. Expansion (3) If a building has a * build to rent development (the existing development ) that has * commenced to be an * active build to rent development, on the first day (if any) on which the building has * dwellings (the new dwellings ): (a) that taken together with the dwellings of the existing development for which the * build to rent compliance period has not ended, satisfy subsection 43 ‑ 153(1); and (b) that are not already a part of a build to rent development; and (c) that the owner of the dwellings chooses to form part of the existing development in accordance with subsection (6) of this section; the existing development expands to comprise: (d) the dwellings of the existing development; and (e) the new dwellings. Cessation (4) A * build to rent development ceases to be an * active build to rent development if the dwellings of the active build to rent development for which the * build to rent compliance period has not ended cease to satisfy subsection 43 ‑ 153(1). Build to rent compliance period (5) The build to rent compliance period for a * dwelling of an * active build to rent development is the 15 years beginning on the day after the day on which: (a) unless paragraph (b) applies—the development * commences to be an active build to rent development; or (b) if: (i) the dwelling is not part of the development when it commences to be an active build to rent development; but (ii) the development * expands to include the dwelling; the development expands to include the dwelling. (6) To make a choice for the purposes of paragraph (1)(b), subparagraph (2)(b)(iii) or paragraph (3)(c) in respect of * dwellings, the owner of the dwellings must: (a) make the choice in the * approved form; and (b) give it to the Commissioner. (7) The choice is taken to be made on the following day: (a) if: (i) the owner nominates a day in the choice; and (ii) the Commissioner receives the choice before the nominated day; the nominated day; or (b) otherwise—the day the Commissioner receives the choice.

Amendment history: Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 43-153 — Build to rent developments—eligibility

(1) For the purposes of section 43 ‑ 152, * dwellings of a building satisfy this subsection at a particular time if, at that time: (a) each of the dwellings is: (i) available to the public to be tenanted by way of lease for a period of 5 years or more in accordance with any requirements determined under subsection (1A); or (ii) being tenanted by way of lease as a result of being made available to the public to be tenanted by way of lease for a period of 5 years or more in accordance with any requirements determined under subsection (1A); and (b) all of the dwellings are: (i) * residential premises; and (ii) * taxable Australian real property; and (iii) not * commercial residential premises; and (c) all of the dwellings and * common areas for the dwellings are owned by a single entity; and (d) the number of the dwellings that are * affordable dwellings is equal to or greater than: (i) 10% of the number of the dwellings; or (ii) if the number of dwellings worked out under subparagraph (i) is not a whole number—that number rounded down to the nearest whole number of dwellings; and (e) subsection (5) applies to each of the affordable dwellings. Note: For the purposes of paragraph (a), a lease is still offered to the public for a period of 5 years or more even if a prospective tenant subsequently requests and the lessor accepts a shorter lease. (1A) For the purposes of subparagraphs (1)(a)(i) and (ii), the Minister may, by legislative instrument, determine requirements relating to the terms of the lease. (1B) For the purposes of subparagraphs (1)(a)(i) and (ii), disregard a requirement determined under subsection (1A) if complying with that requirement would contravene a law of a State or Territory. Affordable dwellings (2) A * dwelling is an affordable dwelling if the requirements determined under subsection (3) in relation to the dwelling are met. (3) For the purposes of subsection (2), the Minister must, by legislative instrument, determine requirements relating to a dwelling. Without limiting this subsection, the requirements may include requirements relating to: (a) the rent payable under the lease for the dwelling; or (b) the income of the tenant or prospective tenant. (4) A reference in paragraph (1)(a) to the public in relation to a lease of a * dwelling is taken to be a reference to a segment of the public if: (a) the dwelling is an * affordable dwelling; and (b) requirements determined under subsection (3) require that the dwelling be tenanted, or be available to be tenanted, only to that segment of the public. (5) For the purposes of paragraph (1)(e), this subsection applies in relation to an affordable dwelling (the test dwelling ) if: where: number of comparable affordable dwellings means the number of the dwellings (including the test dwelling) that: (a) are * affordable dwellings; and (b) have the same number of bedrooms as the test dwelling; and (c) have a floor area that is at least equal to the floor area of the test dwelling, but does not exceed 110% of that floor area. number of comparable non ‑ affordable dwellings means the number of the dwellings that: (a) are not * affordable dwellings; and (b) have the same number of bedrooms as the test dwelling; and (c) have a floor area that is at least equal to the floor area of the test dwelling, but does not exceed 110% of that floor area. Eligibility during construction (6) Dwellings of a building are taken to satisfy subsection (1) at a particular time if: (a) one or more of the dwellings is not tenanted, and not available to be tenanted, at that time as mentioned in paragraph (1)(a) because of: (i) construction of an extension, alteration or improvement to any of the dwellings or the building; or (ii) the making of repairs to any of the dwellings or the building; and (b) the dwellings satisfied subsection (1) just before paragraph (a) of this subsection began to apply; and (c) it is reasonable to expect that the dwellings will satisfy subsection (1) when the construction or repairs are completed. Commissioner’s discretion (7) The Commissioner may determine that * dwellings of a building are taken to satisfy one or more of paragraphs (1)(a), (d) and (e) (the eligibility criteria ) at all times during a particular period, if: (a) the entity that owns the dwellings applies to the Commissioner in the * approved form; and (b) the Commissioner is satisfied of the following: (i) the dwellings did not otherwise satisfy the eligibility criteria at all times during the period due to events outside the control of the entity; (ii) the entity took all reasonable steps to ensure that the dwellings would satisfy the eligibility criteria as soon as practicable; (iii) at the time of the determination, the dwellings satisfy the eligibility criteria; (iv) at the time of the determination, the entity intends that each dwelling will satisfy subsection (1) for the remainder of its * build to rent compliance period. (8) A determination made under subsection (7) has effect according to its terms.

Amendment history: Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 43-154 — Notice of events

(1) If any of the following events happen in relation to a * build to rent development, each entity to which subsection (3) applies must notify the Commissioner of the event: (a) the development * commences to be an * active build to rent development; (b) the development * expands; (c) the * ownership interest in the development is acquired by another entity; (d) the development * ceases to be an active build to rent development. (2) The notice must be: (a) in the * approved form; and (b) given no later than 28 days after the event. (3) This subsection applies to the following entities: (a) the owner of the development at the time just before the event happens; (b) if in the income year in which the event happens, an entity is required to notify the Commissioner under subsection 16 ‑ 150(4) in Schedule 1 to the Taxation Administration Act 1953 of an amount to which subsection 12 ‑ 450(5) in that Schedule applies, to any extent, because of a * dwelling of the development—the entity; (c) if the event is the event mentioned in paragraph (1)(c) of this section—the entity that acquires the * ownership interest in the development.

Amendment history: Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 43-154A — References to buildings

A reference in sections 43 ‑ 151 to 43 ‑ 153 to a building includes a reference to any other buildings that are on the same or adjacent land.

Amendment history: Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 43-155 — What this Subdivision is about

This Subdivision contains special rules about uses of capital works. It is relevant to whether you can get a deduction for capital works and also to the rate of that deduction. The rules in this Subdivision affect the uses of capital works described in Tables 43 ‑ 90, 43 ‑ 140 and 43 ‑ 145. Table of sections Operative provisions 43 ‑ 160 Your area is used for a purpose if it is maintained ready for use for the purpose 43 ‑ 165 Temporary cessation of use 43 ‑ 170 Own use—capital works other than hotel and apartment buildings 43 ‑ 175 Own use—hotel and apartment buildings 43 ‑ 180 Special rules for hotel and apartment buildings 43 ‑ 185 Residential or display use 43 ‑ 190 Use of facilities not commonly provided, and of certain buildings used to operate a hotel, motel or guest house 43 ‑ 195 Use for R&D activities must be in connection with a business

s 43-160 — Your area is used for a purpose if it is maintained ready for use for the purpose

A part of * your area is taken to be used, for use or available for use for a particular purpose or in a particular manner at a time if, at that time: (a) it was maintained ready for use for that purpose or in that manner; and (b) it was not used or for use for any other purpose or in any other manner; and (c) its use or intended use for that purpose or in that manner had not been abandoned. Note 1: Construction must be complete before you can deduct an amount, see section 43 ‑ 30. Note 2: This section affects Tables 43 ‑ 140 and 43 ‑ 145.

s 43-165 — Temporary cessation of use

A part of * your area is taken to be used, for use or available for use for a particular purpose or in a particular manner if its use for that purpose or in that manner temporarily ceases because of: (a) the construction of an extension, alteration or improvement, or the making of repairs; or (b) seasonal or climatic factors. Note: This section affects Tables 43 ‑ 140 and 43 ‑ 145.

s 43-170 — Own use—capital works other than hotel and apartment buildings

(1) A part of capital works, other than a * hotel building or an * apartment building, is taken not to be used for the * purpose of producing assessable income if that part is for use mainly for, or in association with, residential accommodation by you or an * associate. Note: This subsection affects Tables 43 ‑ 140 and 43 ‑ 145. (2) Subsection (1) does not apply to use by an * associate under an * arrangement: (a) to which you and the associate are parties; and (b) that is of a kind that the parties could reasonably be expected to have entered into if they had been dealing with each other at * arm’s length; and (c) that was not entered into for the purpose of obtaining a deduction under this Division. (3) If property that constitutes the whole or part of capital works, other than a * hotel building or an * apartment building, is part of an individual’s home, the property is taken to be used, or for use, wholly or mainly for or in association with residential accommodation. Note: This subsection affects Tables 43 ‑ 90 and 43 ‑ 140.

Amendment history: Amended by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15)

s 43-175 — Own use—hotel and apartment buildings

(1) An entity is taken not to have used a bedroom in a * hotel building, or an apartment, unit or flat in an * apartment building, for the * purpose of producing assessable income at a time if, at that time, the bedroom, apartment, unit or flat is used, or reserved for use, by: (a) the entity; or (b) if the entity is a partnership—any of the partners in the partnership. Note: This subsection affects Tables 43 ‑ 140 and 43 ‑ 145. (2) Also, an entity is taken not to use a bedroom in a * hotel building, or an apartment, unit or flat in an * apartment building for any purpose at a time if: (a) at that time, a * right to use or a right to occupy the bedroom, apartment, unit or flat was vested in the entity; and (b) that right was vested in the entity because the entity was, at that time, a member of a company, a beneficiary of a trust estate or a partner in a partnership. Note: This subsection affects Tables 43 ‑ 90, 43 ‑ 140 and 43 ‑ 145.

Amendment history: Amended by No 79 of 2010, effective Sch 1 (items 3–5, 27–32), Sch 2 (items 2–8, 17–45), Sch 3 (items 2–59), Sch 4 (items 2–6, 38–46, 51) and Sch 5 (items 2, 6–13): 1 July 2010 (s 2(1) items 2–4)

s 43-180 — Special rules for hotel and apartment buildings

Rules about counting rooms or apartments etc. (1) A bedroom in a * hotel building, or an apartment, unit or flat in an * apartment building, is taken to be used or available for use wholly for short ‑ term accommodation for travellers in a period if it is used or available for use mainly for short ‑ term accommodation for travellers in that period. Note: This subsection ensures that a limited period of non ‑ short ‑ term traveller accommodation use will be disregarded in counting the number of rooms provided the bedroom, apartment, unit or flat is used mainly for short ‑ term traveller accommodation. (2) For the purpose of counting the number of bedrooms in a * hotel building, if 2 or more rooms that are bedrooms or include a bedroom are for use together as a suite of rooms, the suite is taken to constitute one bedroom. (3) Despite subsection 43 ‑ 50(3) (which treats you as not being the owner of certain capital works), you can still count an apartment, unit or flat in relation to which CGT event F2 has happened in working out whether you own or lease at least 10 apartments, units or flats in an * apartment building if you own or lease at least one other apartment, unit or flat in the building. Note 1: CGT event F2 results in a lease with a term of 50 years or more being treated for CGT purposes more like an outright disposal. Note 2: Subsection 43 ‑ 50(3) treats you as not being the owner of capital works that are the subject of such a lease. Rules about hotel or apartment complexes (4) A group of buildings that constitutes a complex of buildings is taken to be one * hotel building or * apartment building, and none of the buildings in the group is taken to be a separate building. (5) The construction of a * hotel building or * apartment building is taken to be an extension of another building if, after completion of the construction, those buildings are taken to be one building under subsection (4). Note: Subsections (4) and (5) ensure that a hotel or apartment building that provides short ‑ term traveller accommodation in detached buildings will be treated as a single building so that the 10 hotel room/apartment test is applied to the complex as a whole. It also has the effect that the complex as a whole must be completed before there can be a construction expenditure area. Rules about facilities not commonly provided in Australia (6) If a * hotel building contains a facility of a kind that is not commonly provided in a hotel, motel or guest house in Australia, the facility is taken not to be used or for use to operate a hotel, motel or guest house. (7) If an * apartment building contains a facility of a kind that is not commonly provided in a hotel, motel or guest house in Australia, the facility is taken not to be a facility for use in association with providing short ‑ term accommodation for travellers in apartments, units or flats. Note: Subsections (6) and (7) exclude areas such as casinos from the construction expenditure area of a hotel building or apartment building.

Amendment history: Amended by No 46 of 1998, effective s 4, Sch 1, Sch 2 (items 4–48), Sch 3 (items 3–12), Sch 4 (items 2–11), Sch 5 (items 3–5), Sch 6 (items 2–7), Sch 7 (items 2–11), Sch 9 (items 2–6, 8) and Sch 10: 22 June 1998 (s 2(1)–(4))

s 43-185 — Residential or display use

(1) A building, other than a * hotel building or an * apartment building, or an extension, alteration or improvement to such a building, begun after 19 July 1982 and before 18 July 1985 is taken not to be used for the * purpose of producing assessable income or exempt income if it is used or for use wholly or mainly for exhibition or display in connection with: (a) the sale of all or part of any building; or (b) the lease of all or part of any building for use wholly or mainly for or in association with residential accommodation. Note: Subsection (1) affects time period 2 in Table 43 ‑ 90 and time period 3 in Table 43 ‑ 140. (2) A building, other than a * hotel building or an * apartment building, begun after 19 July 1982 and before 18 July 1985 is taken not to be used for the * purpose of producing assessable income if it is used or available for use wholly or mainly for or in association with residential accommodation. Note: Subsection (2) affects time period 2 in Table 43 ‑ 90 and time period 3 in Table 43 ‑ 140. (3) A building, other than a * hotel building or an * apartment building, begun after 17 July 1985 and before 1 July 1997 is taken not to be used for the * purpose of producing assessable income if it is used or for use wholly or mainly for exhibition or display in connection with the sale of all or part of any building. Note: Subsection (3) affects time periods 2 and 3 in Table 43 ‑ 140.

s 43-190 — Use of facilities not commonly provided, and of certain buildings used to operate a hotel, motel or guest house

(1) A facility in a * hotel building or an * apartment building that is not commonly provided in a hotel, motel or guest house in Australia is taken not to be used, or for use, for or in association with residential accommodation if the facility is part of a building begun after 19 July 1982 and before 18 July 1985. Note: This subsection means that, for time period 2 in Table 43 ‑ 90, a facility referred to in subsection 43 ‑ 180(6) or (7) (dealing with facilities not commonly provided in Australia) is taken to be a non ‑ residential building if it satisfies the use test in Column 3 of that table for a building of that kind, and is therefore eligible for deduction even though it would ordinarily be taken to be used for residential accommodation. (2) A building, other than a * hotel building or an * apartment building, begun after 19 July 1982 and before 18 July 1985 that is used, or for use, wholly or mainly for the purpose of operating a hotel, motel or guest house is taken to be used or for use wholly or mainly for, or in association with, residential accommodation. Note: This subsection ensures that hotels, motels and guest houses begun in the specified time period that do not satisfy the tests for hotel and apartment buildings (for example, because they had fewer than 10 bedrooms or apartments) do not qualify for a deduction under this Division.

s 43-195 — Use for R&D activities must be in connection with a business

You are taken not to use capital works for * R&D activities unless you do so in connection with a business that you carry on for the * purpose of producing assessable income. Note: This section affects Tables 43 ‑ 90 and 43 ‑ 140.

Amendment history: Amended by No 93 of 2011, effective Schedule 1, Schedule 3 (items 1–4, 15–42, 54–107) and Schedule 4 (items 1–9): Royal Assent

s 43-200 — What this Subdivision is about

This Subdivision shows you how to calculate the amount of a deduction under section 43 ‑ 10. The calculations must be made separately for each area that is identified as your area. There are 2 separate calculation provisions: One for capital works begun before 27 February 1992; and the other for capital works begun after 26 February 1992. Table of sections 43 ‑ 205 Explanatory material Operative provisions 43 ‑ 210 Deduction for capital works begun after 26 February 1992 43 ‑ 215 Deduction for capital works begun before 27 February 1992 43 ‑ 220 Capital works taken to have begun earlier for certain purposes

s 43-205 — Explanatory material

Capital works begun before 27 February 1992 The calculation for these works is based on * your construction expenditure and the applicable rate of deduction. There can be only one rate of deduction that applies to * your area. However, reductions of deductions may apply. You must reduce your deduction for any period in the income year that you did not own * your area and use it in the way described in Table 43 ‑ 140 (Current year use). Because there are 2 use tests in Table 43 ‑ 140 for * hotel buildings and * apartment buildings (a general income producing test and a more specific hotel and short ‑ term traveller accommodation use test), there are 2 reduction steps. The first step reduces your deduction if part of * your area was not used as a * hotel building or * apartment building. The second step reduces the deduction to the extent that your area is used only partly for the * purpose of producing assessable income. This occurs, for example, if you * derive both assessable and exempt income, or if part of your area is not used to produce assessable income for all or part of the period it was used as a hotel building or apartment building. Capital works begun after 26 February 1992 The calculation for these works is based on a portion of * your construction expenditure and the applicable rate of deduction. There can be 2 rates of deduction for your area depending on the way you use it. If 2 rates apply, there will be a separate calculation for the part of * your area used in the way described in Table 43 ‑ 140 and for the part of * your area used in the way described in Table 43 ‑ 145 (Use in the 4% manner). A gross deduction and subsequent reduction is calculated for each. The reduction is the same as the second reduction for capital works begun before 27 February 1992.

s 43-210 — Deduction for capital works begun after 26 February 1992

Step 1 Calculate the amount worked out using the formula: where: portion of your CE is the portion of * your construction expenditure that is attributable to the part of * your area that you used in the * 4% manner. days used is the number of days in the income year that: (a) you owned or were the lessee of that part of * your area and used it in the * 4% manner; or (b) you were the holder of that part of * your area under a * quasi ‑ ownership right over land granted by an * exempt Australian government agency or an * exempt foreign government agency, and used that part of your area in the 4% manner. Step 2 Reduce the Step 1 amount by the extent to which the part referred to in Step 1 was used only partly for the * purpose of producing assessable income. Note: This Step applies if: • part of your income from the part referred to in Step 1 is exempt income; or • part of the part referred to in Step 1 was not used for the purpose of producing assessable income or was not available for that use; or • the part of the part referred to in Step 1 was not used for such a purpose during a part of the days used period. Step 3 Calculate the amount worked out using the formula: where: portion of your CE is the portion of * your construction expenditure that is attributable to the part of * your area that you did not use in the * 4% manner but was used as described in Table 43 ‑ 140 (Current year use). days used is the number of days in the income year that: (a) you owned or were the lessee of that part of * your area and used it in that manner; or (b) you were the holder of that part of * your area under a * quasi ‑ ownership right over land granted by an * exempt Australian government agency or an * exempt foreign government agency, and used that part of your area in that manner. Step 4 Reduce the Step 3 amount by the extent to which the part referred to in Step 3: (a) for a * hotel building or * apartment building—was used only partly for the * purpose of producing assessable income; or (b) for any other capital works—was used only partly for the purpose of * producing assessable income or conducting * R&D activities. Note: This Step applies if: • part of your income from the part referred to in Step 3 is exempt income; or • part of the part referred to in Step 3 was not used for the purpose of producing assessable income (or R&D activities) or was not available for that use; or • the part of the part referred to in Step 3 was not used for such a purpose during a part of the days used period. Step 5 Add the Step 2 and Step 4 amounts. Step 6 The amount of your deduction is the lesser of your Step 5 amount or the * undeducted construction expenditure for * your area.

Amendment history: Amended by No 14 of 2009, effective Schedule 1, Schedule 4 (items 11–34, 52) and Schedule 5 (items 7–13): Royal Assent Schedule 5 (items 2, 3, 14): 29 Jan 2009 Schedule 5 (items 5, 6): 1 July 2011 | Amended by No 93 of 2011, effective Schedule 1, Schedule 3 (items 1–4, 15–42, 54–107) and Schedule 4 (items 1–9): Royal Assent

s 43-215 — Deduction for capital works begun before 27 February 1992

Step 1 Calculate the amount worked out using the formula: where: your CE is * your construction expenditure. days used is the number of days in the income year that you owned or were the lessee of * your area and used it in the way that applies to the capital works under Table 43 ‑ 140 (Current year use). applicable rate is: (a) 0.04 if the capital works began after 21 August 1984 and before 16 September 1987; or (b) 0.025 in any other case. Note: For the purpose of working out the applicable rate, capital works begun after 15 September 1987 are taken to have begun before 16 September 1987 in certain circumstances. See section 43 ‑ 220. Step 2 This step applies only to * hotel buildings and * apartment buildings. Reduce the Step 1 amount by the extent to which: (a) for a hotel building—any part of * your area was not used wholly or mainly to operate a hotel, motel or guest house; or (b) for an apartment building—any part of * your area was not used wholly for or in association with providing short ‑ term accommodation for travellers. Step 3 Reduce the Step 1 or 2 amount by the extent to which: (a) for a * hotel building or * apartment building— * your area was used only partly for the * purpose of producing assessable income; or (b) for any other capital works— * your area was used only partly for the * purpose of producing assessable income or conducting * R&D activities. Note: This Step applies if: • part of your income from the capital works is exempt income; or • part of the capital works were not used for the purpose of producing assessable income or were not available for that use; or • the capital works were not used for such a purpose during a part of the days used period. Step 4 The amount of your deduction is the lesser of your Step 3 amount or the * undeducted construction expenditure for * your area.

Amendment history: Amended by No 14 of 2009, effective Schedule 1, Schedule 4 (items 11–34, 52) and Schedule 5 (items 7–13): Royal Assent Schedule 5 (items 2, 3, 14): 29 Jan 2009 Schedule 5 (items 5, 6): 1 July 2011 | Amended by No 93 of 2011, effective Schedule 1, Schedule 3 (items 1–4, 15–42, 54–107) and Schedule 4 (items 1–9): Royal Assent

s 43-220 — Capital works taken to have begun earlier for certain purposes

(1) A building, other than a * hotel building or an * apartment building, or an extension, alteration or improvement to such a building, begun after 15 September 1987 is taken to have begun before 16 September 1987 if: (a) the construction was under a contract that was entered into before 16 September 1987, or was under 2 or more contracts any of which was entered into before that date; or (b) money was borrowed for a purpose that included the purpose of financing the construction under a contract or contracts entered into before 16 September 1987 by an entity that was, or by entities each of which was, a * qualifying investor, and that money was used to finance the construction. (2) An entity is a qualifying investor for the construction of a building if: (a) at the end of 15 September 1987, the entity was the owner or lessee of the land on which the building was constructed; or (b) the entity became the owner or lessee of the land under a contract entered into before 16 September 1987. (3) An entity is a qualifying investor for the construction of an extension, alteration or improvement to a building if: (a) at the end of 15 September 1987, the entity was the owner or lessee of the building, or the part of the building to which the extension, alteration or improvement was made; or (b) the entity became the owner or lessee of the building or that part under a contract entered into before 16 September 1987.

s 43-225 — What this Subdivision is about

The undeducted construction expenditure for your area is the part of your construction expenditure you have left to write off. It is used to work out: • the number of years in which you can deduct amounts for your construction expenditure; and • the amount that you can deduct under section 43 ‑ 40 if your area or a part is destroyed. Table of sections Operative provisions 43 ‑ 230 Calculating undeducted construction expenditure—common step 43 ‑ 235 Post ‑ 26 February 1992 undeducted construction expenditure 43 ‑ 237 Post ‑ 26 February 1992 undeducted construction expenditure—modification for active build to rent developments that have ceased 43 ‑ 240 Pre ‑ 27 February 1992 undeducted construction expenditure

s 43-230 — Calculating undeducted construction expenditure—common step

(1) Identify the date when the capital works began. Note 1: The date determines whether your calculation is to be made under section 43 ‑ 235 (for post ‑ 26/2/92 expenditure) or 43 ‑ 240 (for pre ‑ 27/2/92 expenditure). Note 2: Section 43 ‑ 80 explains when capital works begin. (2) If you are calculating a deduction under Subdivision 43 ‑ F, identify the period ( use period ) that: (a) started when * your area, or a part of it, was first used by any entity for any purpose after completion of the relevant construction; and (b) ended at the end of the preceding income year or, if you acquired your area during the income year, at the end of the day before the time of the acquisition. (3) If you are calculating a deduction under Subdivision 43 ‑ H, identify the period ( use period ) that started at the time described in paragraph (2)(a) and ended at the time of the destruction.

s 43-235 — Post ‑ 26 February 1992 undeducted construction expenditure

Step 1 Calculate for each day in the use period the amount worked out using the formula: where: portion of your CE is the portion of * your construction expenditure that is attributable to the part of * your area that you used in the * 4% manner. Step 2 Calculate for each day in the use period the amount worked out using the formula: where: portion of your CE is the portion of * your construction expenditure that is attributable to the part of * your area that you did not use in the * 4% manner. Step 3 Add the aggregate of the amounts calculated under Steps 1 and 2. Step 4 Deduct the sum of those amounts from * your construction expenditure. The result is the undeducted construction expenditure for * your area.

s 43-237 — Post ‑ 26 February 1992 undeducted construction expenditure—modification for active build to rent developments that have ceased

(1) This section applies if: (a) a part of * your area was an * active build to rent development area; and (b) on a day (the cessation day ) in the income year or a prior income year, the * active build to rent development of the active build to rent development area * ceases to be an active build to rent development. (2) Section 43 ‑ 235 applies to the part as if for each day in the use period: (a) before the cessation day; and (b) that the part was an * active build to rent development; you did not use the part in the * 4% manner.

Amendment history: Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 43-240 — Pre ‑ 27 February 1992 undeducted construction expenditure

Step 1 Calculate for each day in the use period the amount worked out using the formula: where: your CE is * your construction expenditure. applicable rate is: (a) 0.04 if the capital works began after 21 August 1984 and before 16 September 1987; or (b) 0.025 in any other case. Note: For the purpose of working out the applicable rate, capital works begun after 15 September 1987 are taken to have begun before 16 September 1987 in certain circumstances. See section 43 ‑ 220. Step 2 Deduct the sum of the amounts calculated under Step 1 from * your construction expenditure. The result is the undeducted construction expenditure for * your area.

Amendment history: Amended by No 101 of 2003, effective s. 4, Schedule 1 (items 2–20, 22), Schedule 2 (items 1–12), Schedule 3 (items 2–6) and Schedule 6 (items 16, 22–25, 27, 28, 30): Royal Assent s. 5: 11 Oct 2002 Sch 6 (items 17–19): 1 July 1997 (s 2(1) items 17, 18) Sch 6 (items 20, 21): 21 Dec 2000 (s 2(1) items 19, 20) Sch 6 (item 26): 10 Dec 1999 (s 2(1) item 22) Sch 6 (item 29): 30 June 2000 (s 2(1) item 25)

s 43-245 — What this Subdivision is about

You may deduct an amount for the undeducted construction expenditure for your area if your area or part of it is destroyed in the circumstances described in section 43 ‑ 40. This Subdivision shows you how to work out that deduction. The calculations in this Subdivision are made separately for each part of the capital works that is identified as your area. Table of sections Operative provisions 43 ‑ 250 The amount of the balancing deduction 43 ‑ 255 Amounts received or receivable 43 ‑ 260 Apportioning amounts received for destruction

s 43-250 — The amount of the balancing deduction

Method statement Step 1. Calculate the amount (if any) by which the * undeducted construction expenditure for the part of * your area that was destroyed exceeds the amounts you have received or have a right to receive for the destruction of that part. Step 2. Reduce the amount at Step 1 if one or more of these happened to that part of * your area: (a) Step 2 or 4 in section 43 ‑ 210, or Step 2 or 3 in section 43 ‑ 215, applied to you or another person for it; (b) you were, or another person was, not allowed a deduction for it under this Division; (c) a deduction for it was not allowed or was reduced (for you or another person) under former Division 10C or 10D of Part III of the Income Tax Assessment Act 1936 . The reduction under this step must be reasonable.

Amendment history: Repealed and substituted by No 16 of 1998, effective s 4, Sch 3–5, Sch 10 (items 1–19) and Sch 11: 16 Apr 1998 (s 2(1)) | Amended by No 101 of 2006, effective Schedules 3 and 4: 1 Jan 2008 Remainder: Royal Assent

s 43-255 — Amounts received or receivable

The amounts you have received or have a right to receive for the destruction of that part of * your area include: (a) an amount received under an insurance policy or otherwise for the destruction of that part; and (b) an amount received for disposing of property that was included in that part of your area, less any demolition expenditure incurred on the property.

s 43-260 — Apportioning amounts received for destruction

If an amount received or receivable in respect of the destruction of property relates to both the part of * your area for which you are claiming the balancing deduction and to property: (a) the cost of which did not form part of * your construction expenditure; or (b) that is capital works that was not part of your area; you must apportion the amount received or receivable to the amount that is attributable to the part of your area that was destroyed. The apportionment must be reasonable.

s 44-1 — What this Division is about

This Division removes certain tax concessions for build to rent developments when they cease to be active build to rent developments.

Amendment history: Inserted by No 164 of 1999, effective Sch 1, Sch 2 (items 1–16, 19–23), Sch 3 (items 1–10, 14) and Sch 4–6: 10 Dec 1999 (s 2(1)) Sch 2 (items 17, 18): never commenced (s 2(2)) | Repealed by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 44-5 — Object of this Division

The object of this Division is to remove certain tax concessions for * build to rent developments when they * cease to be * active build to rent developments.

Amendment history: Inserted by No 164 of 1999, effective Sch 1, Sch 2 (items 1–16, 19–23), Sch 3 (items 1–10, 14) and Sch 4–6: 10 Dec 1999 (s 2(1)) Sch 2 (items 17, 18): never commenced (s 2(2)) | Repealed by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 44-10 — What this Subdivision is about

You are liable to pay a tax if a build to rent development you own ceases to be an active build to rent development. The tax is on an amount (called a build to rent misuse amount) related to past capital works deductions and withholding amounts (if any) for the active build to rent development. Table of sections Liability for tax 44 ‑ 15 Liability for tax Build to rent misuse amounts 44 ‑ 20 Build to rent misuse amounts 44 ‑ 25 Your build to rent capital works deduction amount 44 ‑ 30 Your build to rent withholding amount

Amendment history: Inserted by No 164 of 1999, effective Sch 1, Sch 2 (items 1–16, 19–23), Sch 3 (items 1–10, 14) and Sch 4–6: 10 Dec 1999 (s 2(1)) Sch 2 (items 17, 18): never commenced (s 2(2)) | Repealed by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 44-15 — Liability for tax

You are liable to pay * build to rent development misuse tax for an income year if you have a * build to rent misuse amount for the income year. Note: The amount of tax is set out in the Capital Works (Build to Rent Misuse Tax) Act 2024 .

Amendment history: Inserted by No 164 of 1999, effective Sch 1, Sch 2 (items 1–16, 19–23), Sch 3 (items 1–10, 14) and Sch 4–6: 10 Dec 1999 (s 2(1)) Sch 2 (items 17, 18): never commenced (s 2(2)) | Repealed by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 44-20 — Build to rent misuse amounts

(1) You have a build to rent misuse amount for an income year, equal to the amount worked under subsection (2), if the amount worked out under that subsection is greater than nil. (2) For the purposes of subsection (1), the amount is the sum of: (a) the amount that is the sum of your * build to rent capital works deduction amounts, worked out under section 44 ‑ 25, for each * build to rent development to which subsection (3) of this section applies for the income year (if any); and (b) the amount that is 10 times the sum of your * build to rent withholding amounts, worked out under section 44 ‑ 30, for each build to rent development to which subsection (3) of this section applies for the income year (if any). (3) For the purposes of paragraphs (2)(a) and (b), this subsection applies to a * build to rent development for an income year if: (a) the build to rent development * ceases to be an * active build to rent development during the income year; and (b) you owned the * dwellings of the build to rent development immediately before that cessation.

Amendment history: Inserted by No 164 of 1999, effective Sch 1, Sch 2 (items 1–16, 19–23), Sch 3 (items 1–10, 14) and Sch 4–6: 10 Dec 1999 (s 2(1)) Sch 2 (items 17, 18): never commenced (s 2(2)) | Repealed by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 44-25 — Your build to rent capital works deduction amount

Your build to rent capital works deduction amount , for a * build to rent development that * ceases to be an * active build to rent development, is the amount worked out as follows: Method statement Step 1. Identify each income year in which, at any time during the year, the * build to rent development was an * active build to rent development. Step 2. For each of those years: (a) identify each * construction expenditure area of capital works that are or include the * active build to rent development area of the * build to rent development at any time during the year; and (b) calculate the amount worked out by the following formula for each construction expenditure area: where: active build to rent part , of the * construction expenditure area, is the part of the area that was the * active build to rent development area, or part of the active build to rent development area at any time during the year. days used is the number of days in the income year that: (a) any entity owned or was the lessee of the * active build to rent part and used it in the * 4% build to rent manner; or (b) any entity was the holder of the active build to rent part under a * quasi ownership right over land granted by an * exempt Australian government agency or an * exempt foreign government agency, and used it in the 4% build to rent manner. portion of construction expenditure is the portion of * construction expenditure that is attributable to the * active build to rent part. Step 3. Reduce the Step 2 amount for each * construction expenditure area, for each year, by the extent to which the * active build to rent part was used only partly for the * purpose of producing assessable income in the year. Note: This step applies if: (a) part of the income from the active build to rent part is exempt income; or (b) part of the active build to rent part was not used for the purpose of producing assessable income or was not available for that use; or (c) the active build to rent part was not used for such a purpose during a part of the days used period. Step 4. For each year, add up the amounts worked out under Step 3 for each * construction expenditure area. Step 5. Add up the Step 4 amounts for each year. Step 6. Multiply the Step 5 amount by: (a) if * you are a company (other than a company in the capacity of a trustee)—the * corporate tax rate for the income year in which the * build to rent development * ceases to be an * active build to rent development (the cessation year ); or (b) in any other case—the maximum rate specified in the table in Part I of Schedule 7 to the Income Tax Rates Act 1986 for the cessation year. Step 7. Your build to rent capital works deduction amount is the Step 6 amount multiplied by 1.08. Note: You can have more than one build to rent capital works deduction amount because there can be more than one build to rent development for which you have a build to rent capital works deduction amount.

Amendment history: Inserted by No 164 of 1999, effective Sch 1, Sch 2 (items 1–16, 19–23), Sch 3 (items 1–10, 14) and Sch 4–6: 10 Dec 1999 (s 2(1)) Sch 2 (items 17, 18): never commenced (s 2(2)) | Repealed by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 44-30 — Your build to rent withholding amount

Your build to rent withholding amount , for a * build to rent development that * ceases to be an * active build to rent development, is the amount worked out as follows: Method statement Step 1. Identify each income year in which, at any time during the year, the * build to rent development was an * active build to rent development. Step 2. For each of those years, identify each * fund payment made by the owner of the * active build to rent development, or each part of such a fund payment, (if any) that is referable to any of the following: (a) a payment of rental income under a lease of a * dwelling of the active build to rent development; (b) a * capital gain from a * CGT event in relation to a dwelling of the active build to rent development. Note: For the purposes of this step, it does not matter whether an amount must be withheld from a fund payment under Part 2 ‑ 5 in Schedule 1 to the Taxation Administration Act 1953 . Step 3. For each year add up the amounts of payments, or parts of payments, identified under Step 2. Step 4. Add up the Step 3 amounts for each year. Step 5. Your build to rent withholding amount is the Step 4 amount multiplied by 1.08.

Amendment history: Inserted by No 164 of 1999, effective Sch 1, Sch 2 (items 1–16, 19–23), Sch 3 (items 1–10, 14) and Sch 4–6: 10 Dec 1999 (s 2(1)) Sch 2 (items 17, 18): never commenced (s 2(2)) | Repealed by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 44-35 — What this Subdivision is about

This Subdivision has rules about payment of build to rent development misuse tax. Table of sections 44 ‑ 40 When tax is payable—original assessments 44 ‑ 45 When tax is payable—amended assessments 44 ‑ 50 General interest charge

Amendment history: Inserted by No 164 of 1999, effective Sch 1, Sch 2 (items 1–16, 19–23), Sch 3 (items 1–10, 14) and Sch 4–6: 10 Dec 1999 (s 2(1)) Sch 2 (items 17, 18): never commenced (s 2(2)) | Repealed by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 44-40 — When tax is payable—original assessments

Your * assessed build to rent development misuse tax is due and payable at the end of 21 days after the Commissioner gives you notice of the assessment of the amount of the * build to rent development misuse tax. Note: For assessments of build to rent development misuse tax, see Division 155 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Inserted by No 164 of 1999, effective Sch 1, Sch 2 (items 1–16, 19–23), Sch 3 (items 1–10, 14) and Sch 4–6: 10 Dec 1999 (s 2(1)) Sch 2 (items 17, 18): never commenced (s 2(2)) | Repealed by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 44-45 — When tax is payable—amended assessments

If the Commissioner amends your assessment, any extra * assessed build to rent development misuse tax resulting from the amendment is due and payable 21 days after the day the Commissioner gives you notice of the amended assessment.

Amendment history: Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 44-50 — General interest charge

If an amount of * assessed build to rent development misuse tax that you are liable to pay remains unpaid after the time by which it is due to be paid, you are liable to pay the * general interest charge on the unpaid amount for each day in the period that: (a) begins on the day on which the amount was due to be paid; and (b) ends on the last day on which, at the end of the day, any of the following remains unpaid: (i) the assessed build to rent development misuse tax; (ii) general interest charge on any of the assessed build to rent development misuse tax. Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 .

Amendment history: Inserted by No 138 of 2024, effective sch 1 (items 2 ‑ 12): 1 Jan 2025 (s 2(1) item 2) sch 5 (items 1 ‑ 13): 11 Dec 2024 (s 2(1) items 6, 7) sch 5 (item 14): never commenced (s 2(1) item 8)

s 45-1 — What this Division is about

This Division is designed to prevent tax being avoided through: (a) the disposal of leased plant, or an interest in leased plant; or (b) the disposal of a partnership interest in a partnership that leased plant; or (c) the disposal of shares in a 100% subsidiary that leased plant; where amounts have been deducted for the decline in value of the plant. It includes amounts in assessable income. Any benefit received, and any reduction in a liability, is taken into account in calculating the amounts included. Where the disposal of shares in a 100% subsidiary is involved, the companies in the former wholly ‑ owned group may be made jointly and severally liable for tax that the former subsidiary does not pay. Table of sections Operative provisions 45 ‑ 5 Disposal of leased plant or lease 45 ‑ 10 Disposal of interest in partnership 45 ‑ 15 Disposal of shares in 100% subsidiary that leases plant 45 ‑ 20 Disposal of shares in 100% subsidiary that leases plant in partnership 45 ‑ 25 Group members liable to pay outstanding tax 45 ‑ 30 Reduction for certain plant acquired before 21.9.99 45 ‑ 35 Limit on amount included for plant for which there is a CGT exemption 45 ‑ 40 Meaning of plant and written down value

Amendment history: Inserted by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1)) | Amended by No 119 of 2002, effective s 4, Sch 1 (items 2–5, 8), Sch 2 and Sch 3 (item 100): 2 Dec 2002 (s 2(1) items 1, 2, 10) Sch 1 (items 6, 7): ( see Sch 10 (item 242) of Act No. 41, 2005) Sch 3 (items 4–78): 30 June 2001 (s 2(1) items 3–8)

s 45-5 — Disposal of leased plant or lease

(1) An amount is included in your assessable income if: (a) you have deducted or can deduct an amount for the decline in value of * plant; and (b) for most of the time when you * held the plant, you leased it to another entity; and (c) all or part of the lease period occurred on or after 22 February 1999; and (d) on or after that day, you dispose of the plant or an interest in the plant, and that disposal constitutes a * balancing adjustment event; and (e) the sum of the following amounts is more than the plant’s * written down value or of that part of it that is attributable to that interest: (i) the money you receive or are entitled to receive for the disposal; (ii) the amount of any reduction in a liability of yours as a result of the disposal; (iii) the * market value of any other benefit you receive or are entitled to receive as a result of the disposal. (2) The amount included is the excess referred to in paragraph (1)(e). It is included for the income year in which the disposal occurred. Example: Sean owns a leased asset. The asset has a written down value of $20,000. He has an outstanding loan for the asset of $60,000. Sean sells a 50% interest in the asset to Leprechaun Pty Ltd for $40,000. Leprechaun agrees to take over 50% of Sean’s obligation to make debt service payments. The excess referred to in paragraph 45 ‑ 5(1)(e) is: That amount is included in Sean’s assessable income. This amount would be reduced if part of it is included in Sean’s assessable income under another provision (see subsection 45 ‑ 5(5)). Note 1: There is a reduction of the amount included for certain plant acquired before 21 September 1999: see section 45 ‑ 30. Note 2: There is a limit on the amount included for plant for which there is a CGT exemption: see section 45 ‑ 35. (3) An amount is also included in your assessable income if: (a) you have deducted or can deduct an amount for the * plant’s decline in value; and (b) for most of the time when you * held the plant, you leased it to another entity; and (c) all or part of the lease period occurred on or after 22 February 1999; and (d) on or after that day, you dispose of: (i) your interest in the plant, or part of it; or (ii) a right under, or an interest in, the lease; and that disposal does not constitute a * balancing adjustment event. (4) The amount included is the sum of the following amounts: (a) the money you receive or are entitled to receive for the disposal; (b) the amount of any reduction in a liability of yours as a result of the disposal; (c) the * market value of any other benefit you receive or are entitled to receive as a result of the disposal; It is included for the income year in which the disposal occurred. (5) However, an amount is not included in your assessable income under this section to the extent that: (a) it is included in that assessable income under a provision of this Act outside this Division; or (b) you apply it under section 40 ‑ 365 (about offsetting balancing adjustments); or (c) roll ‑ over relief is available for the disposal under section 40 ‑ 340. Note: There are special rules for disposals between 22 February 1999 and 21 September 1999: see Division 45 of the Income Tax (Transitional Provisions) Act 1997 .

Amendment history: Inserted by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1)) | Amended by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 57 of 2002, effective Sch 2: 1 July 2002 (s 2(1) item 3) Sch 4 (items 3, 4): 1 July 2000 (s 2(1) item 5) Sch 4 (items 5–8), Sch 7, Sch 9 (items 9, 11, 12, 15–20, 22–40, 45), Sch 11 (items 2–5), Sch 12 (items 16–18, 20, 25, 26): 3 July 2002 (s 2(1) items 6, 7, 9, 11, 13, 15, 16, 18, 28, 30, 33) Sch 9 (items 10, 13, 14, 21) and Sch 12 (items 23, 24): 1 July 1997 (s 2(1) items 10, 12, 14, 32) Sch 12 (item 19): 30 June 1998 (s 2(1) item 29) Sch 12 (items 21, 22): 22 June 1998 (s 2(1) item 31) Sch 12 (items 27, 28): 16 Apr 1998 (s 2(1) item 34) Sch 12 (item 29): 19 Sept 1997 (s 2(1) item 35) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20)

s 45-10 — Disposal of interest in partnership

(1) An amount is included in your assessable income if: (a) a partnership of which you are (or were) a member has deducted or can deduct an amount for the decline in value of * plant; and (b) the deductions have been or would be reflected in your interest in the partnership net income or partnership loss; and (c) for most of the time when the partnership * held the plant, it leased it to another entity; and (d) all or part of the lease period occurred on or after 22 February 1999; and (e) on or after that day, you dispose of your interest in the plant, or part of it, and that disposal constitutes a * balancing adjustment event; and (f) the sum of the following amounts is more than that part of the plant’s * written down value that is attributable to that interest: (i) the money you receive or are entitled to receive for the disposal; (ii) the amount of any reduction in a liability of yours as a result of the disposal; (iii) the * market value of any other benefit you receive or are entitled to receive as a result of the disposal. (2) The amount included is the excess referred to in paragraph (1)(f). It is included for the income year in which the disposal occurred. Example: Chris has a 50% share in a partnership formed to lease an asset. The asset has a written down value of $124,000 (of which Chris’ share is $62,000). Chris assigns his partnership share to another entity for $34,000 plus the other entity agreeing to take over Chris’ obligations to service his share of the partnership debt (which is $165,000). The total consideration is: The amount assessable under section 45 ‑ 10 is the excess referred to in paragraph 45 ‑ 10(1)(f), which is: This amount would be reduced if part of it is included in Chris’ assessable income under another provision (see subsection 45 ‑ 10(5)). Note 1: There is a reduction of the amount included for certain plant acquired before 21 September 1999: see section 45 ‑ 30. Note 2: There is a limit on the amount included for plant for which there is a CGT exemption: see section 45 ‑ 35. (3) An amount is also included in your assessable income if: (a) a partnership of which you are (or were) a member has deducted or can deduct an amount for the decline in value of * plant; and (b) the deductions have been or would be reflected in your interest in the partnership net income or partnership loss; and (c) for most of the time when the partnership * held the plant, it leased it to another entity; and (d) all or part of the lease period occurred on or after 22 February 1999; and (e) on or after that day, you dispose of: (i) your interest in the plant, or part of it; or (ii) a right under, or an interest in, the lease; and that disposal does not constitute a * balancing adjustment event. (4) The amount included is the sum of the following amounts: (a) the money you receive or are entitled to receive for the disposal; (b) the amount of any reduction in a liability of yours as a result of the disposal; (c) the * market value of any other benefit you receive or are entitled to receive as a result of the disposal. It is included for the income year in which the disposal occurred. (5) However, an amount is not included in your assessable income under this section to the extent that: (a) it is included in that assessable income under a provision of this Act outside this Division; or (b) you apply it under section 40 ‑ 365 (about offsetting balancing adjustments). Note: There are special rules for disposals between 22 February 1999 and 21 September 1999: see Division 45 of the Income Tax (Transitional Provisions) Act 1997 .

Amendment history: Inserted by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1)) | Amended by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20)

s 45-15 — Disposal of shares in 100% subsidiary that leases plant

(1) A company (the former subsidiary ) is treated as if it had disposed of * plant, received its * market value for that disposal and immediately reacquired it for the same amount if: (a) the former subsidiary has deducted or can deduct an amount for the decline in value of the plant; and (b) the former subsidiary was a * 100% subsidiary of another company in a * wholly ‑ owned group at a time when it * held the plant; and (c) for most of the time when the former subsidiary held the plant, the plant was leased to another entity; and (d) the main * business of the former subsidiary was to lease assets; and (e) all or part of the lease period occurred on or after 22 February 1999; and (f) on or after that day, the direct or indirect beneficial ownership of more than 50% of the * shares in the former subsidiary is acquired by an entity or entities none of which is a member of the wholly ‑ owned group; and (g) the plant’s * written down value at the time of that acquisition is less than its market value at that time. (2) However, the former subsidiary is not treated as if it had disposed of * plant and reacquired it if the main business of each of the entities that acquired the direct or indirect beneficial ownership of * shares in the former subsidiary is the same as the main business of the * wholly ‑ owned group of which the former subsidiary was a member. (3) The disposal and reacquisition of the * plant: (a) is taken to have occurred when that direct or indirect beneficial ownership was acquired; and (b) is taken not to have affected any lease of the plant.

Amendment history: Inserted by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1)) | Amended by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 119 of 2002, effective s 4, Sch 1 (items 2–5, 8), Sch 2 and Sch 3 (item 100): 2 Dec 2002 (s 2(1) items 1, 2, 10) Sch 1 (items 6, 7): ( see Sch 10 (item 242) of Act No. 41, 2005) Sch 3 (items 4–78): 30 June 2001 (s 2(1) items 3–8) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20)

s 45-20 — Disposal of shares in 100% subsidiary that leases plant in partnership

(1) A company (also the former subsidiary ) is treated as if it had disposed of its interest in * plant, received its * market value for that disposal and immediately reacquired it for the same amount if: (a) a partnership of which the former subsidiary is (or was) a member has deducted or can deduct an amount for the decline in value of the plant; and (b) the former subsidiary was a * 100% subsidiary of another company in a * wholly ‑ owned group at a time when: (i) it was a member of that partnership; and (ii) the partnership * held the plant; and (c) for most of the time when the partnership held the plant, the plant was leased to another entity; and (d) the main * business of the partnership was to lease assets; and (e) all or part of the lease period occurred on or after 22 February 1999; and (f) on or after that day, the direct or indirect beneficial ownership of more than 50% of the * shares in the former subsidiary is acquired by an entity or entities none of which is a member of the wholly ‑ owned group; and (g) the plant’s * written down value at the time of that acquisition is less than its market value at that time. (2) However, the former subsidiary is not treated as if it had disposed of the interest and reacquired it if the main business of each of the entities that acquired the direct or indirect beneficial ownership of * shares in the former subsidiary is the same as the main business of the * wholly ‑ owned group of which the former subsidiary was a member. (3) The disposal and reacquisition of the interest: (a) is taken to have occurred when that direct or indirect beneficial ownership was acquired; and (b) is taken not to have affected any lease of the plant.

Amendment history: Inserted by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1)) | Amended by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 119 of 2002, effective s 4, Sch 1 (items 2–5, 8), Sch 2 and Sch 3 (item 100): 2 Dec 2002 (s 2(1) items 1, 2, 10) Sch 1 (items 6, 7): ( see Sch 10 (item 242) of Act No. 41, 2005) Sch 3 (items 4–78): 30 June 2001 (s 2(1) items 3–8) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20)

s 45-25 — Group members liable to pay outstanding tax

(1) The consequences specified in subsection (2) apply if: (a) an amount is included in the former subsidiary’s assessable income for an income year because of section 45 ‑ 15 or 45 ‑ 20; and (b) the former subsidiary is liable to pay an amount of income tax for that income year; and (c) the former subsidiary does not pay all of that income tax within 6 months after it became payable. (2) The consequences are that: (a) the former subsidiary remains liable to pay the outstanding amount of income tax (reduced by any payments of tax imposed by the New Business Tax System (Former Subsidiary Tax Imposition) Act 1999 ); and (b) each company that was, just before the time when the direct or indirect beneficial ownership referred to in paragraph 45 ‑ 15(1)(f) or 45 ‑ 20(1)(f) was acquired, a member of the former subsidiary’s former * wholly ‑ owned group, is jointly and severally liable to pay tax imposed by the New Business Tax System (Former Subsidiary Tax Imposition) Act 1999 .

Amendment history: Inserted by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1))

s 45-30 — Reduction for certain plant acquired before 21.9.99

(1) The amount included in your assessable income under subsection 45 ‑ 5(2) or 45 ‑ 10(2) is reduced if: (a) you acquired the * plant at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999 and you disposed of the plant or an interest in it after that time; and (b) the sum of the amounts (your proceeds ) referred to in paragraph 45 ‑ 5(1)(e) or 45 ‑ 10(1)(f) is more than the plant’s * cost, or that part of it that is attributable to the interest you disposed of. (2) The amount included is reduced by the lesser of: (a) the amount (if any) by which the * plant’s * cost base exceeds its * cost, or that part of the excess that is attributable to the interest you disposed of; and (b) the difference between your proceeds and the plant’s cost, or that part of its cost that is attributable to the interest you disposed of. (3) However, the amount is not reduced under this section if: (a) the * plant was a * pre ‑ CGT asset at the time of the * balancing adjustment event; or (b) a * capital gain or * capital loss from the plant or interest would be disregarded because of a provision listed in the table in this subsection if: (i) you had made the gain or loss from * CGT event A1; and (ii) that CGT event had happened at the time of the balancing adjustment event. Plant for which a reduction is not made under this section Item Provision Subject matter 1 section 118 ‑ 5 cars, motor cycles and valour decorations 2 section 118 ‑ 10 collectables and personal use assets 3 section 118 ‑ 12 plant used to produce exempt income

Amendment history: Inserted by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1))

s 45-35 — Limit on amount included for plant for which there is a CGT exemption

(1) For * plant to which subsection 45 ‑ 30(3) applies there is a limit on the amount that can be included in your assessable income under subsection 45 ‑ 5(2) or 45 ‑ 10(2). (2) The limit for subsection 45 ‑ 5(2) is the lesser of: (a) the excess referred to in paragraph 45 ‑ 5(1)(e); and (b) the amounts you have deducted or can deduct for the decline in value of the * plant or, if you disposed of an interest in the plant, so much of those amounts as is attributable to that interest. (3) The limit for subsection 45 ‑ 10(2) is the lesser of: (a) the excess referred to in paragraph 45 ‑ 10(1)(f); and (b) that part of the amounts the partnership has deducted or can deduct for the decline in value of the * plant that has been or would be reflected in your interest in the partnership net income or partnership loss (your partnership amount ) or, if you disposed of part of your interest in the plant, so much of your partnership amount as is attributable to that part of that interest.

Amendment history: Inserted by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1)) | Amended by No 119 of 2002, effective s 4, Sch 1 (items 2–5, 8), Sch 2 and Sch 3 (item 100): 2 Dec 2002 (s 2(1) items 1, 2, 10) Sch 1 (items 6, 7): ( see Sch 10 (item 242) of Act No. 41, 2005) Sch 3 (items 4–78): 30 June 2001 (s 2(1) items 3–8)

s 45-40 — Meaning of plant and written down value

(1) Plant includes: (a) articles, machinery, tools and rolling stock; and (b) animals used as beasts of burden or working beasts in a * business, other than a * primary production business; and (c) fences, dams and other structural improvements, other than those used for domestic or residential purposes, on land that is used for agricultural or pastoral operations; and (d) structural improvements, other than a * forestry road or structural improvements used for domestic or residential purposes, on land used in a business involving: (i) planting or tending trees in a plantation or forest that are intended to be felled; or (ii) felling trees in a plantation or forest; or (iii) transporting trees, or parts of trees, that you felled in a plantation or forest to the place where they are first to be milled or processed, or from which they are to be transported to the place where they are first to be milled or processed; and (e) structural improvements, other than those used for domestic or residential purposes, that are used wholly for operations (carried out in the course of a business) relating directly to: (i) taking or culturing pearls or pearl shell; or (ii) taking or catching trochus, bêche ‑ de ‑ mer or green snails; and that are situated at or near a port or harbour from which the business is conducted; and (f) structural improvements that are excluded from paragraph (c), (d) or (e) because they are used for domestic or residential purposes if they are provided for the accommodation of employees, tenants or sharefarmers who are engaged in or in connection with the activities referred to in that paragraph. (2) Plant also includes plumbing fixtures and fittings (including wall and floor tiles) provided by an entity mainly for: (a) either or both: (i) employees in a * business carried on by the entity for the * purpose of producing assessable income; or (ii) employees in a business carried on for that purpose by a company that is a member of the same * wholly ‑ owned group of which the entity is a member; or (b) * children of any of those employees. (3) The written down value of a * depreciating asset is its * cost less the sum of: (a) the amounts you have deducted or can deduct for its decline in value; and (b) if section 40 ‑ 340 applied to your acquisition of it—the amounts the transferor, and earlier successive transferors, deducted or can deduct for its decline in value.

Amendment history: Inserted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1))

s 50-1 — Entities whose ordinary income and statutory income is exempt

The total * ordinary income and * statutory income of the entities covered by the following tables is exempt from income tax. In some cases, the exemption is subject to special conditions. Note 1: Ordinary and statutory income that is exempt from income tax is called exempt income: see section 6 ‑ 20. The note to subsection 6 ‑ 15(2) describes some of the other consequences of it being exempt income. Note 2: Even if you are an exempt entity, the Commissioner can still require you to lodge an income tax return or information under section 161 of the Income Tax Assessment Act 1936 . Note 3: In all cases the exemption is subject to the special condition in section 50 ‑ 47 (about an entity that is an ACNC type of entity).

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22)

s 50-5 — Charity, education and science

Charity, education, science and religion Item Exempt entity Special conditions 1.1 registered charity see sections 50 ‑ 50 and 50 ‑ 52 1.3 scientific institution see section 50 ‑ 55 1.4 public educational institution see section 50 ‑ 55 1.6 fund established to enable scientific research to be conducted by or in conjunction with a public university or public hospital see section 50 ‑ 65 1.7 society, association or club established for the encouragement of science see section 50 ‑ 70 Note 1: Section 50 ‑ 52 has the effect that certain charities are exempt from income tax only if they are endorsed under Subdivision 50 ‑ B. Note 2: Section 50 ‑ 80 may affect which item a trust is covered by.

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 47 of 1998, effective Schedule 1 (items 2, 4): 1 July 1998 Remainder: Royal Assent | Amended by No 179 of 1999, effective Sch 7, Sch 8, Sch 16 (items 18, 19, 37) and Sch 18: 22 Dec 1999 (s 2(1), (7)(d), (e)) Sch 11 (items 80–105) and Sch 18 (items 4, 5, 17, 21, 32): 1 July 2000 (s 2(9)(b), (14)) | Amended by No 75 of 2010, effective Sch 1 (items 34, 35) and Sch 6 (items 7–10): 29 June 2010 (s 2(1) items 2, 9) Sch 2 (item 26): 1 July 2010 (s 2(1) item 4) Sch 2 (item 27): never commenced (s 2(1) item 5) Sch 3, Sch 4 and Sch 5 (items 1, 7–9): 28 June 2010 (s 2(1) items 6, 7) Sch 5 (items 10, 11): 1 Jan 2018 (s 2(1) item 8) | Amended by No 169 of 2012, effective Sch 2 (items 4–23, 28–39, 187–189) and Sch 4 (items 4–7): 3 Dec 2012 (s. 2(1) items 3, 7, 12) Sch 4 (items 8–10, 21, 22): never commenced (s 2(1) items 13, 14) Sch 5: 4 Dec 2012 (s 2(1) item 15) | Amended by No 96 of 2013, effective Sch 1 (items 23–37): 1 Jan 2014 (s 2(1) item 2)

s 50-10 — Community service

Community service Item Exempt entity Special conditions 2.1 society, association or club established for community service purposes (except political or lobbying purposes) see section 50 ‑ 70

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 47 of 1998, effective Schedule 1 (items 2, 4): 1 July 1998 Remainder: Royal Assent

s 50-15 — Employees and employers

Employees and employers Item Exempt entity Special conditions 3.1 (a) employee association; or (b) employer association the association: (a) is registered or recognised under the Fair Work (Registered Organisations) Act 2009 or an * Australian law relating to the settlement of industrial disputes; and (b) is located in Australia, and incurs its expenditure and pursues its objectives principally in Australia; and (c) complies with all the substantive requirements in its governing rules; and (d) applies its income and assets solely for the purpose for which the association is established 3.2 trade union the trade union: (a) is located in Australia, and incurs its expenditure and pursues its objectives principally in Australia; and (b) complies with all the substantive requirements in its governing rules; and (c) applies its income and assets solely for the purpose for which the trade union is established

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 47 of 1998, effective Schedule 1 (items 2, 4): 1 July 1998 Remainder: Royal Assent | Amended by No 101 of 2004, effective s. 4, Schedule 1 (items 2–4), Schedule 9, Schedule 10 (items 7–37) and Schedule 11 (items 144–146): Royal Assent Sch 2 and Sch 7 (items 1–8): 30 June 2003 (s 2(1) items 3, 8) Sch 3: 1 July 2003 (s 2(1) item 4) Sch 11 (item 35): 30 June 2000 (s 2(1) item 13) Sch 11 (items 52–59, 88, 89): 1 July 2000 (s 2(1) item 14) Sch 11 (items 141–143): 1 July 2001 (s 2(1) item 16) | Amended by No 54 of 2009, effective Sch 18 (items 6–9): 1 July 2009 (s 2(1) item 41) | Amended by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22)

s 50-25 — Government

Government Item Exempt entity Special conditions 5.1 (a) a municipal corporation; or (b) a * local governing body none 5.2 a public authority constituted under an * Australian law none 5.3 a * constitutionally protected fund none 5.4 a * 100% subsidiary of the * Future Fund Board that is incorporated under an * Australian law the 100% subsidiary only undertakes investment activities that the Future Fund Board is able to undertake Note: The ordinary and statutory income of a State or Territory body is exempt: see Division 1AB of Part III of the Income Tax Assessment Act 1936 .

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 54 of 1999, effective 5 July 1999 (s 2(1), (2)) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 40 of 2023, effective sch 2, sch 4 (items 14-16): 1 July 2023 (s 2(1) items 3, 5) sch 3: 1 Jan 2024 (s 2(1) item 4)

s 50-30 — Health

Health Item Exempt entity Special conditions 6.1 public hospital see section 50 ‑ 55 6.2 hospital carried on by a society or association not carried on for the profit or gain of its individual members, see also section 50 ‑ 55 6.3 private health insurer within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 not carried on for the profit or gain of its individual members

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 47 of 1998, effective Schedule 1 (items 2, 4): 1 July 1998 Remainder: Royal Assent | Amended by No 32 of 2007, effective Schedule 2 (item 52): 1 Apr 2007 ( see s. 2(1)) Schedule 3 (items 7A, 8, 9, 9A–9C): 1 July 2007 | Amended by No 87 of 2015, effective Sch 1 (items 23–33): 1 July 2015 (s 2(1) item 2) Sch 2: 27 June 2015 (s 2(1) item 9)

s 50-35 — Mining

Mining Item Exempt entity Special conditions 7.2 the British Phosphate Commissioners Banaba Contingency Fund (established on 1 June 1981) none

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 41 of 2011, effective Schedule 1 (items 1–3): 1 Jan 2011 Schedule 1 (items 4–6) and Schedule 5 (items 25–29, 33, 36–50, 74–78, 80–145, 148–167, 173–175, 383–396, 400, 414–418): Royal Assent Schedule 5 (items 9, 18–20): 28 June 2011 Schedule 5 (items 51–54): 1 July 2011

s 50-40 — Primary and secondary resources, and tourism

Primary and secondary resources, and tourism Item Exempt entity Special conditions 8.1 a society or association established for the purpose of promoting the development of: (a) aviation; or (b) tourism not carried on for the profit or gain of its individual members 8.2 a society or association established for the purpose of promoting the development of any of the following Australian resources: (a) agricultural resources; (b) horticultural resources; (c) industrial resources; (d) manufacturing resources; (e) pastoral resources; (f) viticultural resources; (g) aquacultural resources; (h) fishing resources not carried on for the profit or gain of its individual members 8.3 a society or association established for the purpose of promoting the development of Australian information and communications technology resources not carried on for the profit or gain of its individual members

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 66 of 2000, effective Sch 2 (items 3, 4): 7 Dec 1998 (s 2(3)) Sch 3–5: 22 June 2000 (s 2(1)) | Amended by No 168 of 2001, effective Schedule 2: 1 July 2000 Remainder: Royal Assent | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015 | Amended by No 84 of 2018, effective Sch 1 (items 1, 8–13, 15), Sch 2 (items 1–3, 6–10), Sch 3, Sch 4 (items 2–4) and Sch 5: 1 Oct 2018 (s 2(1) item 1) | Amended by No 49 of 2019, effective Sch 3 (item 1) and Sch 4 (items 71–94, 111): 1 July 2019 (s 2(1) items 10, 12) | Amended by No 52 of 2024, effective sch 3 (items 1 ‑ 5): 29 June 2024 (s 2(1) item 3) sch 4 ‑ 7: 1 July 2024 (s 2(1) item 4)

s 50-45 — Sports, culture and recreation

Sports, culture, film and recreation Item Exempt entity Special conditions 9.1 a society, association or club established for the encouragement of: (a) animal racing; or (b) art; or (c) a game or sport; or (d) literature; or (e) music see section 50 ‑ 70 9.2 a society, association or club established for musical purposes see section 50 ‑ 70 9.3 ICC Business Corporation FZ ‑ LLC both of the following: (a) the entity is a * wholly ‑ owned subsidiary of International Cricket Council Limited; (b) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2018; and (ii) before 1 July 2023 9.4 Fédération Internationale de Football Association both of the following: (a) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2020; and (ii) before 1 January 2029; (b) the ordinary income is * derived from, or the statutory income is from, activities relating to the Fédération Internationale de Football Association (FIFA) Women’s World Cup Australia New Zealand 2023 9.5 FWWC2023 Pty Ltd all of the following: (a) the entity is a * wholly ‑ owned subsidiary of the Fédération Internationale de Football Association; (b) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2020; and (ii) before 1 January 2029; (c) the ordinary income is * derived from, or the statutory income is from, activities relating to the Fédération Internationale de Football Association (FIFA) Women’s World Cup Australia New Zealand 2023 9.6 Rugby Australia Ltd both of the following: (a) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2023; and (ii) before 1 July 2031; (b) the ordinary income is * derived from, or the statutory income is from, activities relating to the men’s Rugby World Cup 2027 or the women’s Rugby World Cup 2029 9.7 Rugby World Cup (Australia) Pty Ltd both of the following: (a) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2023; and (ii) before 1 July 2031; (b) the ordinary income is * derived from, or the statutory income is from, activities relating to the men’s Rugby World Cup 2027 or the women’s Rugby World Cup 2029 9.8 Rugbypass Limited all of the following: (a) the entity is a * wholly ‑ owned subsidiary of World Rugby; (b) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2023; and (ii) before 1 July 2031; (c) the ordinary income is * derived from, or the statutory income is from, activities relating to the men’s Rugby World Cup 2027 or the women’s Rugby World Cup 2029 9.9 RWC2003 Limited all of the following: (a) the entity is a * wholly ‑ owned subsidiary of World Rugby; (b) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2023; and (ii) before 1 July 2031; (c) the ordinary income is * derived from, or the statutory income is from, activities relating to the men’s Rugby World Cup 2027 or the women’s Rugby World Cup 2029 9.10 World Rugby both of the following: (a) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2023; and (ii) before 1 July 2031; (b) the ordinary income is * derived from, or the statutory income is from, activities relating to the men’s Rugby World Cup 2027 or the women’s Rugby World Cup 2029 9.11 World Rugby Events Designated Activity Company all of the following: (a) the entity is a * wholly ‑ owned subsidiary of World Rugby; (b) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2023; and (ii) before 1 July 2031; (c) the ordinary income is * derived from, or the statutory income is from, activities relating to the men’s Rugby World Cup 2027 or the women’s Rugby World Cup 2029 9.12 World Rugby Limited all of the following: (a) the entity is a * wholly ‑ owned subsidiary of World Rugby; (b) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2023; and (ii) before 1 July 2031; (c) the ordinary income is * derived from, or the statutory income is from, activities relating to the men’s Rugby World Cup 2027 or the women’s Rugby World Cup 2029 9.13 World Rugby Tournaments Limited all of the following: (a) the entity is a * wholly ‑ owned subsidiary of World Rugby; (b) only amounts included as * ordinary income or * statutory income: (i) on or after 1 July 2023; and (ii) before 1 July 2031; (c) the ordinary income is * derived from, or the statutory income is from, activities relating to the men’s Rugby World Cup 2027 or the women’s Rugby World Cup 2029

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 47 of 1998, effective Schedule 1 (items 2, 4): 1 July 1998 Remainder: Royal Assent | Amended by No 65 of 2003, effective s. 4, Schedule 2, Schedule 3 (items 3–5) and Schedule 5 (item 3): Royal Assent | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 41 of 2011, effective Schedule 1 (items 1–3): 1 Jan 2011 Schedule 1 (items 4–6) and Schedule 5 (items 25–29, 33, 36–50, 74–78, 80–145, 148–167, 173–175, 383–396, 400, 414–418): Royal Assent Schedule 5 (items 9, 18–20): 28 June 2011 Schedule 5 (items 51–54): 1 July 2011 | Amended by No 84 of 2018, effective Sch 1 (items 1, 8–13, 15), Sch 2 (items 1–3, 6–10), Sch 3, Sch 4 (items 2–4) and Sch 5: 1 Oct 2018 (s 2(1) item 1) | Amended by No 35 of 2022, effective sch 1 (items 1-3), sch 3 (items 2, 3): 1 Oct 2022 (s 2(1) items 2, 4) | Amended by No 12 of 2026, effective sch 3 (items 4 ‑ 6), sch 5 (items 1 ‑ 28): 1 Apr 2026 (s 2(1) items 4, 6)

s 50-47 — Special condition for all items

An entity that: (a) is covered by any item; and (b) is an * ACNC type of entity; is not exempt from income tax unless the entity is registered under the Australian Charities and Not ‑ for ‑ profits Commission Act 2012 .

Amendment history: Inserted by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22)

s 50-50 — Special conditions for item 1.1

(1) An entity covered by item 1.1 is not exempt from income tax unless the entity: (a) has a physical presence in Australia and, to that extent, incurs its expenditure and pursues its objectives principally in Australia; or (b) is an institution that meets the description and requirements in item 1 of the table in section 30 ‑ 15; or (c) is a prescribed institution which is located outside Australia and is exempt from income tax in the country in which it is resident; or (d) is a prescribed institution that has a physical presence in Australia but which incurs its expenditure and pursues its objectives principally outside Australia; and the entity satisfies the conditions in subsection (2). Note 1: Certain distributions may be disregarded: see section 50 ‑ 75. Note 2: The entity must also meet other conditions to be exempt from income tax: see section 50 ‑ 52. (2) The entity must: (a) comply with all the substantive requirements in its governing rules; and (b) apply its income and assets solely for the purpose for which the entity is established.

Amendment history: Inserted by No 47 of 1998, effective Schedule 1 (items 2, 4): 1 July 1998 Remainder: Royal Assent | Amended by No 179 of 1999, effective Sch 7, Sch 8, Sch 16 (items 18, 19, 37) and Sch 18: 22 Dec 1999 (s 2(1), (7)(d), (e)) Sch 11 (items 80–105) and Sch 18 (items 4, 5, 17, 21, 32): 1 July 2000 (s 2(9)(b), (14)) | Amended by No 169 of 2012, effective Sch 2 (items 4–23, 28–39, 187–189) and Sch 4 (items 4–7): 3 Dec 2012 (s. 2(1) items 3, 7, 12) Sch 4 (items 8–10, 21, 22): never commenced (s 2(1) items 13, 14) Sch 5: 4 Dec 2012 (s 2(1) item 15) | Amended by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22)

s 50-52 — Special condition for item 1.1

(1) An entity covered by item 1.1 is not exempt from income tax unless the entity is endorsed as exempt from income tax under Subdivision 50 ‑ B. (3) This section has effect despite all the other sections of this Subdivision.

Amendment history: Inserted by No 179 of 1999, effective Sch 7, Sch 8, Sch 16 (items 18, 19, 37) and Sch 18: 22 Dec 1999 (s 2(1), (7)(d), (e)) Sch 11 (items 80–105) and Sch 18 (items 4, 5, 17, 21, 32): 1 July 2000 (s 2(9)(b), (14)) | Amended by No 95 of 2004, effective s. 4, Schedules 2, 3, 5 and 11: Royal Assent Schedule 7 (items 1–10, 13): 1 July 2004 Schedule 10 (items 28–39, 44, 45): 1 July 2005 | Amended by No 63 of 2005, effective Schedule 1 (items 5–23): Royal Assent | Repealed and substituted by No 169 of 2012, effective Sch 2 (items 4–23, 28–39, 187–189) and Sch 4 (items 4–7): 3 Dec 2012 (s. 2(1) items 3, 7, 12) Sch 4 (items 8–10, 21, 22): never commenced (s 2(1) items 13, 14) Sch 5: 4 Dec 2012 (s 2(1) item 15) | Amended by No 96 of 2013, effective Sch 1 (items 23–37): 1 Jan 2014 (s 2(1) item 2)

s 50-55 — Special conditions for items 1.3, 1.4, 6.1 and 6.2

(1) An entity covered by item 1.3, 1.4, 6.1 or 6.2 is not exempt from income tax unless the entity: (a) has a physical presence in Australia and, to that extent, incurs its expenditure and pursues its objectives principally in Australia; or (b) is an institution that meets the description and requirements in item 1 of the table in section 30 ‑ 15; or (c) is a prescribed institution which is located outside Australia and is exempt from income tax in the country in which it is resident; and the entity satisfies the conditions in subsection (2). Note: Certain distributions may be disregarded: see section 50 ‑ 75. (2) The entity must: (a) comply with all the substantive requirements in its governing rules; and (b) apply its income and assets solely for the purpose for which the entity is established.

Amendment history: Inserted by No 47 of 1998, effective Schedule 1 (items 2, 4): 1 July 1998 Remainder: Royal Assent | Amended by No 179 of 1999, effective Sch 7, Sch 8, Sch 16 (items 18, 19, 37) and Sch 18: 22 Dec 1999 (s 2(1), (7)(d), (e)) Sch 11 (items 80–105) and Sch 18 (items 4, 5, 17, 21, 32): 1 July 2000 (s 2(9)(b), (14)) | Amended by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22)

s 50-65 — Special conditions for item 1.6

(1) A fund covered by item 1.6 is not exempt from tax unless the fund is applied for the purposes for which it was established and is: (a) a fund that is located in, and which incurs its expenditure principally in, Australia and that is established for the purpose of enabling scientific research to be conducted principally in Australia by or in conjunction with a public university or public hospital; or (b) a scientific research fund that meets the description and requirements in item 1 or 2 of the table in section 30 ‑ 15; and the fund satisfies the conditions in subsection (2). Note: Certain distributions may be disregarded: see section 50 ‑ 75. (2) The fund must: (a) comply with all the substantive requirements in its governing rules; and (b) apply its income and assets solely for the purpose for which the fund is established.

Amendment history: Inserted by No 47 of 1998, effective Schedule 1 (items 2, 4): 1 July 1998 Remainder: Royal Assent | Amended by No 179 of 1999, effective Sch 7, Sch 8, Sch 16 (items 18, 19, 37) and Sch 18: 22 Dec 1999 (s 2(1), (7)(d), (e)) Sch 11 (items 80–105) and Sch 18 (items 4, 5, 17, 21, 32): 1 July 2000 (s 2(9)(b), (14)) | Amended by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22)

s 50-70 — Special conditions for items 1.7, 2.1, 9.1 and 9.2

(1) An entity covered by item 1.7, 2.1, 9.1 or 9.2 is not exempt from tax unless the entity is a society, association or club that is not carried on for the purpose of profit or gain of its individual members and that: (a) has a physical presence in Australia and, to that extent, incurs its expenditure and pursues its objectives principally in Australia; or (b) is a society, association or club that meets the description and requirements in item 1 of the table in section 30 ‑ 15; or (c) is a prescribed society, association or club which is located outside Australia and is exempt from income tax in the country in which it is resident; and the entity satisfies the conditions in subsection (2). Note: Certain distributions may be disregarded: see section 50 ‑ 75. (2) The entity must: (a) comply with all the substantive requirements in its governing rules; and (b) apply its income and assets solely for the purpose for which the entity is established.

Amendment history: Inserted by No 47 of 1998, effective Schedule 1 (items 2, 4): 1 July 1998 Remainder: Royal Assent | Amended by No 179 of 1999, effective Sch 7, Sch 8, Sch 16 (items 18, 19, 37) and Sch 18: 22 Dec 1999 (s 2(1), (7)(d), (e)) Sch 11 (items 80–105) and Sch 18 (items 4, 5, 17, 21, 32): 1 July 2000 (s 2(9)(b), (14)) | Amended by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Amended by No 143 of 2007, effective Schedule 1 (items 1, 4, 128–194, 222, 223, 225, 226), Schedule 2, Schedule 5 (items 1–16, 48(1)–(3)), Schedule 6 and Schedule 7 (items 18–68): Royal Assent Schedule 5 (items 31–46): 15 Mar 2007 (s 2(1) item 6) | Amended by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22)

s 50-72 — Special condition for item 4.1

(1) A fund covered by item 4.1 is not exempt from income tax unless the fund: (a) is applied for the purposes for which it is established; and (b) distributes solely, and has at all times since the time mentioned in subsection (2) distributed solely, to a fund, authority or institution that: (i) meets the description and requirements in item 1 of the table in section 30 ‑ 15; and (ii) is an * exempt entity; and (c) complies with all the substantive requirements in its governing rules; and (d) applies its income and assets solely for the purpose for which the fund is established. (2) The time is the start of the income year after the income year in which the Tax Laws Amendment (2005 Measures No. 3) Act 2005 receives the Royal Assent.

Amendment history: Inserted by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Repealed by No 89 of 2000, effective s 4, Sch 1 (items 1–17, 19–25, 30–32, 34–65, 65A, 68), Sch 2 (items 63–66, 69, 71–79, 79A, 79B, 80–83, 83A, 84), Sch 4, Sch 5 (items 1–31, 34), Sch 6 and Sch 9 (items 5, 9, 26, 43, 55–57, 62, 63, 66, 67): 30 June 2000 (s 2(1)) Sch 1 (item 18): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 1 (items 26–29, 33): 31 May 2000 (s 2(3)) Sch 2 (items 67, 68, 70): 1 July 2001 (s 2(5)) Sch 9 (items 1–4, 6–8, 10–25, 27–42, 44–54, 58–61, 64, 65, 68–73): 1 July 2000 (s 2(11)) | Inserted by No 63 of 2005, effective Schedule 1 (items 5–23): Royal Assent | Amended by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22)

s 50-75 — Certain distributions may be made overseas

(1) In determining for the purposes of this Subdivision whether an institution, fund or other body incurs its expenditure or pursues its objectives principally in Australia, distributions of any amount received by the institution, fund or other body as a gift (whether of money or other property) or by way of government grant are to be disregarded. (2) In determining for the purposes of this Subdivision whether an institution, fund or other body incurs its expenditure or pursues its objectives principally in Australia, distributions of any amount from a fund that is referred to in a table in Subdivision 30 ‑ B and operated by the institution, fund or other body are to be disregarded.

Amendment history: Inserted by No 47 of 1998, effective Schedule 1 (items 2, 4): 1 July 1998 Remainder: Royal Assent | Amended by No 63 of 2005, effective Schedule 1 (items 5–23): Royal Assent | Amended by No 169 of 2012, effective Sch 2 (items 4–23, 28–39, 187–189) and Sch 4 (items 4–7): 3 Dec 2012 (s. 2(1) items 3, 7, 12) Sch 4 (items 8–10, 21, 22): never commenced (s 2(1) items 13, 14) Sch 5: 4 Dec 2012 (s 2(1) item 15)

s 50-100 — What this Subdivision is about

This Subdivision sets out rules about endorsement of charities as exempt from income tax. Such entities are only exempt from income tax if they are endorsed. Table of sections Endorsing charitable entities as exempt from income tax 50 ‑ 105 Endorsement by Commissioner 50 ‑ 110 Entitlement to endorsement

Amendment history: Inserted by No 179 of 1999, effective Sch 7, Sch 8, Sch 16 (items 18, 19, 37) and Sch 18: 22 Dec 1999 (s 2(1), (7)(d), (e)) Sch 11 (items 80–105) and Sch 18 (items 4, 5, 17, 21, 32): 1 July 2000 (s 2(9)(b), (14)) | Amended by No 96 of 2013, effective Sch 1 (items 23–37): 1 Jan 2014 (s 2(1) item 2) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 50-105 — Endorsement by Commissioner

The Commissioner must endorse an entity as exempt from income tax if the entity: (a) is entitled to be endorsed as exempt from income tax; and (b) has applied for that endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953 . Note: For procedural rules relating to endorsement, see Division 426 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Inserted by No 179 of 1999, effective Sch 7, Sch 8, Sch 16 (items 18, 19, 37) and Sch 18: 22 Dec 1999 (s 2(1), (7)(d), (e)) Sch 11 (items 80–105) and Sch 18 (items 4, 5, 17, 21, 32): 1 July 2000 (s 2(9)(b), (14)) | Amended by No 95 of 2004, effective s. 4, Schedules 2, 3, 5 and 11: Royal Assent Schedule 7 (items 1–10, 13): 1 July 2004 Schedule 10 (items 28–39, 44, 45): 1 July 2005

s 50-110 — Entitlement to endorsement

General rule (1) An entity is entitled to be endorsed as exempt from income tax if the entity meets all the relevant requirements of this section. Which entities are entitled to be endorsed? (2) To be entitled, the entity must be an entity covered by item 1.1 of the table in section 50 ‑ 5. Requirement for ABN (3) To be entitled, the entity must have an * ABN. Requirement to meet special conditions (5) To be entitled: (a) the entity must meet the relevant conditions referred to in the column headed “Special conditions” of item 1.1 of the table in section 50 ‑ 5; or (b) both of the following conditions must be met: (i) the entity must not have carried on any activities as a charity; (ii) there must be reasonable grounds for believing that the entity will meet the relevant conditions referred to in the column headed “Special conditions” of item 1.1 of the table. The entity must also satisfy section 50 ‑ 47, if the entity is an * ACNC type of entity. (6) To avoid doubt, the condition set out in section 50 ‑ 52 (requiring the entity to be endorsed under this Subdivision) is not a relevant condition for the purposes of subsection (5).

Amendment history: Inserted by No 179 of 1999, effective Sch 7, Sch 8, Sch 16 (items 18, 19, 37) and Sch 18: 22 Dec 1999 (s 2(1), (7)(d), (e)) Sch 11 (items 80–105) and Sch 18 (items 4, 5, 17, 21, 32): 1 July 2000 (s 2(9)(b), (14)) | Amended by No 63 of 2005, effective Schedule 1 (items 5–23): Royal Assent | Amended by No 169 of 2012, effective Sch 2 (items 4–23, 28–39, 187–189) and Sch 4 (items 4–7): 3 Dec 2012 (s. 2(1) items 3, 7, 12) Sch 4 (items 8–10, 21, 22): never commenced (s 2(1) items 13, 14) Sch 5: 4 Dec 2012 (s 2(1) item 15) | Amended by No 96 of 2013, effective Sch 1 (items 23–37): 1 Jan 2014 (s 2(1) item 2) | Amended by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22)

s 51-1 — Amounts of ordinary income and statutory income that are exempt

The amounts of * ordinary income and * statutory income covered by the following tables are exempt from income tax. In some cases, the exemption is subject to exceptions or special conditions, or both. Note 1: Ordinary and statutory income that is exempt from income tax is called exempt income: see section 6 ‑ 20. The note to subsection 6 ‑ 15(2) describes some of the other consequences of it being exempt income. Note 2: Even if an exempt payment is made to you, the Commissioner can still require you to lodge an income tax return or information under section 161 of the Income Tax Assessment Act 1936 .

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5))

s 51-5 — Defence

Defence Item If you are: ... the following amounts are exempt from income tax: ... subject to these exceptions and special conditions: 1.1 a member of the Defence Force (a) payments of allowances or bounty of a kind prescribed in the regulations; and (b) the * market value of rations and quarters supplied to you without charge none 1.1A a member of the Defence Force compensation payments for loss of deployment allowance for warlike service see section 51 ‑ 32 1.2 a recipient of a payment in respect of a member of the Defence Force payments of allowances or bounty of a kind prescribed in the regulations none 1.4 a member of: (a) the Naval Reserve; or (b) the Army Reserve; or (c) the Air Force Reserve pay and allowances as a member except pay and allowances for continuous full time service 1.5 a former member of: (a) the Naval Reserve; or (b) the Army Reserve; or (c) the Air Force Reserve compensation payments for loss of pay and/or allowances as a member see section 51 ‑ 33 1.6 a recipient of an ex ‑ gratia payment from the Commonwealth known as the F ‑ 111 Deseal/Reseal Ex ‑ gratia Lump Sum Payment the ex ‑ gratia payment none 1.7 a recipient of a reparation payment or an additional payment from the Commonwealth in relation to a recommendation by the Defence Force Ombudsman performing a function conferred by a prescribed provision of regulations made under the Ombudsman Act 1976 the reparation payment or additional payment none Note: Reparation payments referred to in item 1.7 relate to abuse in the Defence Force.

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 10 of 2001, effective Sch 2 (items 62, 94, 95): 19 Apr 2001 (s 2(1)) | Amended by No 65 of 2003, effective s. 4, Schedule 2, Schedule 3 (items 3–5) and Schedule 5 (item 3): Royal Assent | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22) | Amended by No 124 of 2018, effective Sch 2, Sch 3 (items 1–3A, 6) and Sch 4: 1 Jan 2019 (s 2(1) item 1) | Amended by No 18 of 2020, effective Sch 1 (items 24–26): 6 Sept 2020 (s 2(1) item 1)

s 51-10 — Education and training

Education and training Item If you are: ... the following amounts are exempt from income tax: ... subject to these exceptions and special conditions: 2.1A a full ‑ time student at a school, college or university a scholarship, bursary, educational allowance or educational assistance see section 51 ‑ 35 2.1B (a) a student; or (b) a recipient of a payment in respect of a student a payment under a Commonwealth scheme for assistance of: (a) secondary education; or (b) the education of isolated children see section 51 ‑ 40 2.1 a recipient of a grant made by the Australian ‑ American Educational Foundation the grant the grant is from funds made available to the Foundation under the agreement establishing it 2.2 an employer payments under the CRAFT Scheme (the Commonwealth Rebate for Apprentice Full ‑ Time Training Scheme) each payment is for an apprentice who most recently started work with you before 1 January 1998 2.3 a recipient of a scholarship known as a Commonwealth Trade Learning Scholarship the scholarship none 2.4 a recipient of a payment known as the Apprenticeship Wage Top ‑ Up the payment none 2.5 a recipient of: (a) a research fellowship under the Endeavour Awards; or (b) an Endeavour Executive Award the fellowship or award none 2.6 a recipient of a bonus for early completion of an apprenticeship so much of the bonus as does not exceed $1,000 see section 51 ‑ 42 2.7 a recipient of a payment under the program known as Skills for Sustainability for Australian Apprentices the payment none 2.8 a recipient of a payment under the program known as Tools for Your Trade (within the program known as the Australian Apprenticeships Incentives Program) the payment none

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 16 of 1998, effective s 4, Sch 3–5, Sch 10 (items 1–19) and Sch 11: 16 Apr 1998 (s 2(1)) | Amended by No 54 of 1999, effective 5 July 1999 (s 2(1), (2)) | Amended by No 66 of 2005, effective Schedules 1 and 2: 1 July 2005 Schedule 3: 20 Mar 2000 ( see s. 2(1)) Remainder: Royal Assent | Amended by No 114 of 2007, effective Schedule 1: 1 July 2007 Remainder: Royal Assent | Amended by No 38 of 2008, effective Schedule 1, Schedules 3–6, Schedule 7 (items 1–3, 5), Schedule 8 (items 1–11), Schedule 9 (items 2–4), Schedule 10, Schedule 12 and Schedule 13: 24 June 2008 Schedule 8 (items 12–21): 1 July 2012 | Amended by No 52 of 2009, effective Schedule 1 (items 1–3): 1 July 2009 | Amended by No 75 of 2010, effective Sch 1 (items 34, 35) and Sch 6 (items 7–10): 29 June 2010 (s 2(1) items 2, 9) Sch 2 (item 26): 1 July 2010 (s 2(1) item 4) Sch 2 (item 27): never commenced (s 2(1) item 5) Sch 3, Sch 4 and Sch 5 (items 1, 7–9): 28 June 2010 (s 2(1) items 6, 7) Sch 5 (items 10, 11): 1 Jan 2018 (s 2(1) item 8) | Amended by No 55 of 2016, effective Sch 3 (items 16–19): 1 July 2017 (s 2(1) item 4) Sch 4 (items 9–13): 1 Jan 2017 (s 2(1) item 5) Sch 22 and Sch 23 (items 2, 3, 22–24): 1 Oct 2016 (s 2(1) item 25)

s 51-30 — Welfare

Welfare Item If you are: ... the following amounts are exempt from income tax: ... subject to these exceptions and special conditions: 5.1 an individual in receipt of periodic payments in the nature of maintenance the payments see section 51 ‑ 50 5.2 an individual in receipt of an ex ‑ gratia payment from the Commonwealth known as disaster recovery payment for special category visa (subclass 444) holders for a disaster: (a) that occurred in Australia during the 2014 ‑ 15 * financial year or a later financial year; and (b) for which a determination under section 1061L of the Social Security Act 1991 has been made the payment 5.5 an individual in receipt of a payment under the program established by the Commonwealth and known as the Support for Australia’s Thalidomide Survivors program the payment none 5.6 an individual in receipt of a payment from the Thalidomide Australia Fixed Trust the payment the payment must be: (a) made to you, or applied for your benefit, as a beneficiary of the Trust; or (b) made to you in respect of a beneficiary of the Trust

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 54 of 1999, effective 5 July 1999 (s 2(1), (2)) | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 14 of 2009, effective Schedule 1, Schedule 4 (items 11–34, 52) and Schedule 5 (items 7–13): Royal Assent Schedule 5 (items 2, 3, 14): 29 Jan 2009 Schedule 5 (items 5, 6): 1 July 2011 | Amended by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 31 of 2011, effective Schedule 1 (items 1, 2) and Schedule 2 (items 1, 2): 25 May 2011 (s 2(1) items 2, 4) Schedule 1 (item 4) and Schedule 2 (items 4, 5): 1 July 2014 (s 2(1) items 3, 5) Schedule 3 (items 32–36): 26 May 2011 (s 2(1) item 6) | Amended by No 50 of 2011, effective Schedule 4 (items 1–3): 27 June 2011 (s 2(1) item 11) Schedule 4 (items 10, 11): 1 July 2014 (s 2(1) item 12) | Amended by No 71 of 2012, effective Sch 1, Sch 2 and Sch 3 (items 1, 2): 27 June 2012 (s 2(1) items 2, 3) Sch 5 (items 1–3): 1 July 2012 (s 2(1) item 6) | Amended by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11) | Amended by No 119 of 2013, effective Sch 1: 30 June 2013 (s 2(1) item 2) Remainder: 29 June 2013(s 2(1) items 1, 3, 4) | Amended by No 25 of 2017, effective Sch 3 (items 1–11) and Sch 4 (items 3–5): 5 Apr 2017 (s 2(1) items 4, 6) Sch 3 (items 12–14): 1 Sept 2017 (s 2(1) item 5) | Amended by No 61 of 2021, effective Sch 3 (items 1–3), Sch 4 and Sch 5: 1 July 2021 (s 2(1) items 4, 6)

s 51-32 — Compensation payments for loss of tax exempt payments

(1) A compensation payment for the loss of pay or an allowance for your warlike service is exempt from income tax if: (a) the compensation payment is made under the Safety, Rehabilitation and Compensation (Defence ‑ related Claims) Act 1988 in respect of an injury (as defined in that Act) you suffered; and (b) you suffered your injury while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936 ; and (c) your injury or disease caused the loss of your pay or allowance; and (d) your pay or allowance was payable under the Defence Act 1903 or under a determination under that Act. (2) A compensation payment for the loss of pay or an allowance for your warlike service is exempt from income tax if: (a) the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and (b) you sustained your service injury or contracted your service disease, or your service injury or disease was aggravated or materially contributed to, while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936 ; and (c) your injury or disease caused the loss of your pay or allowance; and (d) your pay or allowance was payable under the Defence Act 1903 or under a determination under that Act. (3) Subsections (4) and (5) apply to: (a) a deployment allowance; or (b) some other allowance that is exempt from income tax specified in writing by the * Defence Minister for the purposes of this subsection; that is payable under a determination under the Defence Act 1903 for your non ‑ warlike service. (4) A compensation payment for the loss of the allowance is exempt from income tax if: (a) the compensation payment is made under the Safety, Rehabilitation and Compensation (Defence ‑ related Claims) Act 1988 in respect of an injury (as defined in that Act) you suffered; and (b) your injury caused the loss of your allowance. (5) A compensation payment for the loss of the allowance is exempt from income tax if: (a) the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and (b) your injury or disease caused the loss of your allowance.

Amendment history: Inserted by No 65 of 2003, effective s. 4, Schedule 2, Schedule 3 (items 3–5) and Schedule 5 (item 3): Royal Assent | Repealed and substituted by No 52 of 2004, effective Schedule 4 (items 10–13, 14(2), (3), 15): 1 July 2004 ( see s. 2) | Amended by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010 | Amended by No 108 of 2017, effective Sch 3 (item 12): 12 Oct 2017 (s 2(1) item 5)

s 51-33 — Compensation payments for loss of pay and/or allowances as a Defence reservist

(1) A compensation payment for the loss of your pay or an allowance is exempt from income tax if: (a) the compensation payment is made under the Safety, Rehabilitation and Compensation (Defence ‑ related Claims) Act 1988 in respect of an injury (as defined in that Act) you suffered; and (b) you suffered your injury while serving as a member of the Naval Reserve, Army Reserve or Air Force Reserve (but not while on continuous full time service); and (c) your pay or allowance was payable for service of a kind described in paragraph (b). (2) A compensation payment for the loss of your pay or an allowance is exempt from income tax if: (a) the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and (b) you sustained your service injury or contracted your service disease, or your service injury or disease was aggravated or materially contributed to, while serving as a member of the Naval Reserve, Army Reserve or Air Force Reserve; and (c) your pay or allowance was payable for service of a kind described in paragraph (b); and (d) the compensation payment is worked out by reference to your normal earnings (as defined in that Act) as a part ‑ time Reservist (as defined in that Act).

Amendment history: Inserted by No 65 of 2003, effective s. 4, Schedule 2, Schedule 3 (items 3–5) and Schedule 5 (item 3): Royal Assent | Repealed and substituted by No 52 of 2004, effective Schedule 4 (items 10–13, 14(2), (3), 15): 1 July 2004 ( see s. 2) | Amended by No 108 of 2017, effective Sch 3 (item 12): 12 Oct 2017 (s 2(1) item 5)

s 51-35 — Payments to a full ‑ time student at a school, college or university

The following payments made to or on behalf of a full ‑ time student at a school, college or university are not exempt from income tax under item 2.1A of the table in section 51 ‑ 10: (a) a payment by the Commonwealth for assistance for secondary education or in connection with education of isolated children; (b) a * Commonwealth education or training payment; (c) a payment by an entity or authority on the condition that the student will (or will if required) become, or continue to be, an employee of the entity or authority; (d) a payment by an entity or authority on the condition that the student will (or will if required) enter into, or continue to be a party to, a contract with the entity or authority that is wholly or principally for the labour of the student; (e) a payment under a scholarship where the scholarship is not provided principally for educational purposes; (f) an education entry payment under Part 2.13A of the Social Security Act 1991 . Note: The whole or part of a Commonwealth education or training payment may be exempt under Subdivision 52 ‑ E or 52 ‑ F.

Amendment history: Inserted by No 54 of 1999, effective 5 July 1999 (s 2(1), (2)) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 184 of 2007, effective Schedule 3: 1 Jan 2008

s 51-40 — Payments to a secondary student

The following payments made to or on behalf of a student are not exempt from income tax under item 2.1B of the table in section 51 ‑ 10: (a) a * Commonwealth education or training payment; (b) an education entry payment under Part 2.13A of the Social Security Act 1991 . Note: The whole or part of a Commonwealth education or training payment may be exempt under Subdivision 52 ‑ E or 52 ‑ F.

Amendment history: Inserted by No 54 of 1999, effective 5 July 1999 (s 2(1), (2)) | Amended by No 184 of 2007, effective Schedule 3: 1 Jan 2008

s 51-42 — Bonuses for early completion of an apprenticeship

(1) The bonus must be provided under a scheme provided by a State or Territory, and the scheme must be specified in the regulations for the purposes of this section. (2) The apprenticeship: (a) must be for an occupation of a kind specified in the regulations; and (b) must be completed within a time frame specified in the regulations for apprenticeships of that kind.

Amendment history: Inserted by No 38 of 2008, effective Schedule 1, Schedules 3–6, Schedule 7 (items 1–3, 5), Schedule 8 (items 1–11), Schedule 9 (items 2–4), Schedule 10, Schedule 12 and Schedule 13: 24 June 2008 Schedule 8 (items 12–21): 1 July 2012

s 51-43 — Income collected or derived by copyright collecting society

(1) This section applies to a * copyright collecting society if Division 6 of Part III of the Income Tax Assessment Act 1936 applies to the income of the society. (2) The following are exempt from income tax: (a) * royalties, and interest on royalties, collected or * derived by the society in an income year; (b) any other amounts, relating to copyright, that are: (i) derived by the society in an income year; and (ii) prescribed by the regulations for the purposes of this paragraph; (c) other * ordinary income and * statutory income derived by the society in an income year, to the extent that it does not exceed the lesser of: (i) 5% of the total amount of the * ordinary income and * statutory income collected and derived by the society in the income year; and (ii) $5 million or such other amount as is prescribed by the regulations for the purposes of this subparagraph.

Amendment history: Inserted by No 23 of 2005, effective s. 4, Schedule 1 (items 2–8, 11, 13–19, 21–24, 26, 27, 29–32), Schedule 2 (items 1–11, 14), Schedule 3 (items 1–13, 75–102, 111(1)–(3)), Schedules 4–6, 8, 10 and Schedule 12 (items 2–6, 11(1)): Royal Assent Schedule 12 (item 1): 1 July 2000 | Repealed and substituted by No 126 of 2009, effective Schedule 1 (items 1–17, 20): 9 June 2010 ( see s. 2(1))

s 51-45 — Income collected or derived by resale royalty collecting society

(1) This section applies to the * resale royalty collecting society if Division 6 of Part III of the Income Tax Assessment Act 1936 applies to the income of the society. (2) The following are exempt from income tax: (a) * resale royalties, and interest on resale royalties, collected or * derived by the society in an income year; (b) any other amounts, relating to * resale royalty rights, that are: (i) derived by the society in an income year; and (ii) prescribed by the regulations for the purposes of this paragraph; (c) other * ordinary income and * statutory income derived by the society in an income year, to the extent that it does not exceed the lesser of: (i) 5% of the total amount of the ordinary income and statutory income collected and derived by the society in the income year; and (ii) $5 million or such other amount as is prescribed by the regulations for the purposes of this subparagraph.

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Repealed by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A) | Inserted by No 126 of 2009, effective Schedule 1 (items 1–17, 20): 9 June 2010 ( see s. 2(1))

s 51-50 — Maintenance payments to a spouse or child

(1) This section sets out the conditions on which a periodic payment, in the nature of maintenance, that: (a) is made by an individual (the maintenance payer ); or (b) is attributable to a payment made by an individual (also the maintenance payer ); is exempt from income tax under item 5.1 of the table in section 51 ‑ 30. (2) The maintenance payment is exempt from income tax only if it is made: (a) to an individual who is or has been the maintenance payer’s * spouse; or (b) to or for the benefit of an individual who is or has been: (i) a * child of the maintenance payer; or (ii) a child who is or has been a child of an individual who is or has been a * spouse of the maintenance payer. (3) The maintenance payment is not exempt if, in order to make it or a payment to which it is attributable, the maintenance payer: (a) divested any income ‑ producing assets; or (b) diverted * ordinary income or * statutory income upon which the maintenance payer would otherwise have been liable to income tax.

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 14 of 2009, effective Schedule 1, Schedule 4 (items 11–34, 52) and Schedule 5 (items 7–13): Royal Assent Schedule 5 (items 2, 3, 14): 29 Jan 2009 Schedule 5 (items 5, 6): 1 July 2011

s 51-52 — Income derived from eligible venture capital investments by ESVCLPs

General (1) An entity’s share of income derived from an * eligible venture capital investment is exempt from income tax if: (a) the entity is a partner in a * limited partnership; and (b) the partnership made the investment; and (c) the investment meets all of the * additional investment requirements for ESVCLPs for the investment; and (d) when the partnership made the investment, the partnership was an * early stage venture capital limited partnership that was * unconditionally registered; and (e) when the income was derived, the partnership: (i) owned the investment; and (ii) was an early stage venture capital limited partnership that was unconditionally registered. Partners in AFOFs (2) An entity’s share of income derived from an * eligible venture capital investment is exempt from income tax if: (a) the entity is a partner in an * AFOF; and (b) the AFOF is a partner in a partnership that made the investment; and (c) when the partnership made the investment, the partnership was an * early stage venture capital limited partnership that was * unconditionally registered; and (d) the investment meets all of the * additional investment requirements for ESVCLPs for the investment; and (e) when the income was derived, the partnership: (i) owned the investment; and (ii) was an early stage venture capital limited partnership that was unconditionally registered. Residency requirements for general partners (3) However, if the entity is a * general partner in the partnership, this section does not apply to the entity unless the entity is: (a) an Australian resident; or (b) a resident of a foreign country in respect of which a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936 ) is in force that is an agreement of a kind referred to in subparagraph (b)(i), (ia), (ii), (iii), (iv) or (v) of that definition. (4) For the purposes of this section, the place of residence of a * general partner in a * limited partnership: (a) that is a company or limited partnership; and (b) that is not an Australian resident; is the place in which the general partner has its central management and control. Beneficiaries’ shares of capital gains made by unit trusts (5) For the purposes of this section, an entity’s share of income derived from an * eligible venture capital investment that is an investment in a unit trust includes any present entitlement of the entity, as a beneficiary, to a share of an amount included in the assessable income of the unit trust under section 102 ‑ 5. Carried interests (6) This section does not apply to an entity’s share of income derived from an * eligible venture capital investment to the extent that the income is a payment of a * carried interest of a * general partner in an * ESVCLP or an * AFOF.

Amendment history: Inserted by No 78 of 2007, effective Schedule 7 (items 2–14): 1 July 2005 Schedule 8 (items 350–353): 19 Dec 2002 (s 2(1) item 7) Remainder: Royal Assent

s 51-54 — Gain or profit from disposal of eligible venture capital investments

Partners in VCLPs and ESVCLPs (1) An entity’s share of any gain or profit made from the disposal or other realisation of an * eligible venture capital investment is exempt from income tax if: (a) it is made by a * VCLP, or an * ESVCLP, that is * unconditionally registered; and (b) were that disposal or other realisation to be a * disposal of a * CGT asset, the entity’s share of any * capital gain or * capital loss would be disregarded under section 118 ‑ 405 or 118 ‑ 407. (1A) An entity’s share of any gain or profit made: (a) by an * ESVCLP that is * unconditionally registered; and (b) from the disposal or other realisation of an * eligible venture capital investment; is exempt from income tax to the extent that, were that disposal or other realisation to be a * disposal of a * CGT asset, the equivalent * capital gain arising from the * CGT event would be disregarded because of a partial exemption from the CGT event under section 118 ‑ 408. Partners in AFOFs (2) An entity’s share of any gain or profit made from the disposal or other realisation of an * eligible venture capital investment is exempt from income tax if: (a) it is made by: (i) an * AFOF that is * unconditionally registered; or (ii) a * VCLP, or an * ESVCLP, that is unconditionally registered and in which an AFOF that is * unconditionally registered is a partner; and (b) were that disposal or other realisation to be a * disposal of a * CGT asset, the entity’s share of any * capital gain or * capital loss would be disregarded under section 118 ‑ 410. Eligible venture capital investors (3) Any gain or profit made from the disposal or other realisation of an * eligible venture capital investment is exempt from income tax if: (a) you are an * eligible venture capital investor; and (b) were that disposal or other realisation to be a * disposal of a * CGT asset, any * capital gain or * capital loss would be disregarded under section 118 ‑ 415.

Amendment history: Inserted by No 136 of 2002, effective Sch 1 (items 1, 5): 31 May 2000 (s 2(1) items 2, 4) Sch 1 (items 2–4, 6–27), Sch 2 (items 18–28), Sch 3 (items 2–18) and Sch 4 (items 1, 2): 19 Dec 2002 (s 2(1) items 3, 5, 6) | Amended by No 78 of 2007, effective Schedule 7 (items 2–14): 1 July 2005 Schedule 8 (items 350–353): 19 Dec 2002 (s 2(1) item 7) Remainder: Royal Assent | Amended by No 54 of 2016, effective Sch 1 (items 1, 12–14, 19) and Sch 2 (items 1–5, 8–14, 20–34, 44–51, 53–56, 63–74, 76): 1 July 2016 (s 2(1) items 2–5, 7)

s 51-55 — Gain or profit from disposal of venture capital equity

Any gain or profit made from the disposal or other realisation of * venture capital equity in a * resident investment vehicle is exempt from income tax if: (a) it is made by a * venture capital entity or a * limited partnership referred to in subsection 118 ‑ 515(2); and (b) if that disposal or other realisation were a * disposal of a * CGT asset, any * capital gain or * capital loss would be disregarded under Subdivision 118 ‑ G.

Amendment history: Inserted by No 165 of 1999, effective s 4, Sch 1 (items 1–53, 61, 62), Sch 2, Sch 3 (items 1–4, 18) and Sch 4: 10 Dec 1999 (s 2(1), (2))

s 51-57 — Interest on judgment debt relating to personal injury

(1) An amount paid by way of interest on a judgment debt, whether payable under an * Australian law, or otherwise, is exempt from income tax if: (a) the judgment debt arose from a judgment (the original judgment ) given by, or entered in, a court for an award of damages for personal injury; and (b) the amount is in respect of the whole or any part of the period: (i) beginning at the time of the original judgment, or, if the judgment debt is taken to have arisen at an earlier time, at that earlier time; and (ii) ending when the original judgment is finalised. (2) For the purposes of subsection (1), an original judgment is finalised at whichever of the following times is applicable: (a) if the period for lodging an appeal against either the original judgment or a subsequent related judgment ends without an appeal being lodged—the end of the period; (b) if an appeal from either the original judgment or a subsequent related judgment is lodged and final judgment on the appeal is given by, or entered in, a court—when the final judgment takes effect; (c) if an appeal from either the original judgment or a subsequent related judgment is lodged but is settled or discontinued—when the settlement or discontinuance takes effect. (3) For the purposes of paragraph (2)(b), a judgment is a final judgment if: (a) no appeal lies against the judgment; or (b) leave to appeal against the judgment has been refused.

Amendment history: Inserted by No 58 of 2000, effective s 4, Sch 2 (items 2–4(2)), Sch 5, Sch 6 (items 1–13, 17, 18, 20–32, 34), Sch 9 and Sch 10 (items 12–17(3)–(6), 31–38(3)–(7)): 31 May 2000 (s 2(1)) Sch 4: 17 Dec 1999 (s 2(8)) Sch 6 (items 14–16): never commenced (s 2(10)) Sch 6 (item 19): 16 July 1999 (s 2(11)) Sch 8 (item 19): 1 July 1998 (s 2(13)) | Inserted by No 136 of 2002, effective Sch 1 (items 1, 5): 31 May 2000 (s 2(1) items 2, 4) Sch 1 (items 2–4, 6–27), Sch 2 (items 18–28), Sch 3 (items 2–18) and Sch 4 (items 1, 2): 19 Dec 2002 (s 2(1) items 3, 5, 6) | Amended by No 143 of 2007, effective Schedule 1 (items 1, 4, 128–194, 222, 223, 225, 226), Schedule 2, Schedule 5 (items 1–16, 48(1)–(3)), Schedule 6 and Schedule 7 (items 18–68): Royal Assent Schedule 5 (items 31–46): 15 Mar 2007 (s 2(1) item 6)

s 51-60 — Prime Minister’s Prizes

(1) To the extent that the Prime Minister’s Prize for Australian History would otherwise be assessable income, it is exempt from income tax. (2) To the extent that the Prime Minister’s Prize for Science would otherwise be assessable income, it is exempt from income tax. (3) To the extent that a Prime Minister’s Literary Award would otherwise be assessable income, it is exempt from income tax.

Amendment history: Inserted by No 76 of 2000, effective 28 June 2000 | Repealed by No 101 of 2006, effective Schedules 3 and 4: 1 Jan 2008 Remainder: Royal Assent | Inserted by No 164 of 2007, effective s. 4, Schedule 1 (items 1–24, 36–67, 71), Schedules 2–6, Schedule 7 (items 1–3, 5–12, 14), Schedule 8 (items 6–13), Schedule 9 and Schedule 10 (items 1, 7–25, 91, 92): Royal Assent Schedule 10 (items 57–88): 1 July 2010 Sch 12 (items 72–87): 27 Sept 2007 (s 2(1) item 9) | Amended by No 32 of 2008, effective 23 June 2008

s 51-100 — Shipping

(1) An entity’s * ordinary income * derived during an income year (the present year ), or * statutory income for the present year, is exempt from income tax to the extent that it is from * shipping activities that: (a) relate to a vessel for which the entity has a * shipping exempt income certificate for the present year; and (b) take place on a day (a certified day ) to which the certificate applies. Note: For the days to which the certificate applies, see subsection 8(5) of the Shipping Reform (Tax Incentives) Act 2012 . (2) Subsection (1) does not apply to * ordinary income * derived from, or * statutory income from, * incidental shipping activities relating to the vessel if: where: total core shipping income means the sum of the entity’s: (a) * ordinary income * derived from * core shipping activities relating to the vessel on the certified days (see paragraph (1)(b)); and (b) * statutory income from those activities on those days. total incidental shipping income means the sum of the entity’s: (a) * ordinary income * derived from * incidental shipping activities relating to the vessel on the certified days (see paragraph (1)(b)); and (b) * statutory income from those activities on those days.

Amendment history: Inserted by No 57 of 2012, effective Schedules 1–3: Royal Assent

s 51-105 — Shipping activities

Shipping activities are * core shipping activities or * incidental shipping activities.

Amendment history: Inserted by No 57 of 2012, effective Schedules 1–3: Royal Assent

s 51-110 — Core shipping activities

(1) Core shipping activities are activities directly involved in operating a vessel to carry * shipping cargo or * shipping passengers for consideration. (2) Without limiting subsection (1), core shipping activities include the following: (a) carrying the * shipping cargo or * shipping passengers on the vessel; (b) crewing the vessel; (c) carrying goods on board for the operation of the vessel (including for the enjoyment of shipping passengers); (d) providing the containers that carry shipping cargo on the vessel; (e) loading shipping cargo onto, and unloading it from, the vessel; (f) repacking shipping cargo to be carried on the vessel; (g) providing temporary storage for shipping cargo just before or after its carriage on the vessel; (h) providing space on board the vessel for carrying shipping cargo or shipping passengers; (i) activities generating onboard income from shipping passengers of the vessel; (j) providing shore excursions to shipping passengers of the vessel; (k) transporting shipping cargo, or shipping passengers, between the vessel and the shore; (l) providing administration and insurance services that are directly related to carrying shipping cargo or shipping passengers on the vessel; (m) onboard selling of tickets on behalf of other entities to shipping passengers of the vessel; (n) onboard advertising to shipping passengers of the vessel; (o) providing quay ‑ side services to shipping passengers that: (i) are similar to those provided on the vessel; and (ii) are provided from a floor area that does not exceed that from which similar services are provided on the vessel; (p) providing car parking to individuals while they are shipping passengers on the vessel; (q) making contracts solely to reduce the risk of financial loss from currency exchange rate fluctuations that directly relate to the operation of the vessel; (r) an activity specified in regulations made for the purposes of this paragraph. (3) Despite subsections (1) and (2), core shipping activities do not include an activity specified in regulations made for the purposes of this subsection.

Amendment history: Inserted by No 57 of 2012, effective Schedules 1–3: Royal Assent

s 51-115 — Incidental shipping activities

Incidental shipping activities are activities incidental to * core shipping activities.

Amendment history: Inserted by No 57 of 2012, effective Schedules 1–3: Royal Assent

s 51-120 — Interest on unclaimed money and property

The following amounts are exempt from income tax: (a) an amount of interest paid under paragraph 69(7AA)(b) of the Banking Act 1959 ; Note: An amount of interest paid under paragraph 69(7AA)(a) of the Banking Act 1959 is not ordinary income or statutory income. (b) an amount of interest paid under subsection 1341(3A) of the Corporations Act 2001 ; (e) an amount of interest paid under paragraph 216(7A)(b) of the Life Insurance Act 1995 . Note: An amount of interest paid under paragraph 216(7A)(a) of the Life Insurance Act 1995 is not ordinary income or statutory income. Note: For interest paid under the Superannuation (Unclaimed Money and Lost Members) Act 1999 , see subsections 307 ‑ 142(3B) and (3C).

Amendment history: Inserted by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 51-125 — 2018 storms—relief payments

(1) A payment is exempt from income tax if the payment: (a) is made to a primary producer for the purposes of an agreement covered by subsection (2); and (b) relates to storm damage sustained by the primary producer on or around 25 October 2018. (2) An agreement is covered by this subsection if: (a) the parties to the agreement are the Commonwealth and the Foundation for Rural and Regional Renewal; and (b) the objective of the agreement is principally to assist primary producers affected by storms that occurred on or around 25 October 2018. Note: Payments may be made to primary producers by the Foundation for Rural and Regional Renewal, or by other entities on behalf of the Foundation.

Amendment history: Inserted by No 30 of 2019, effective Sch 1 and 2: 1 July 2019 (s 2(1) item 2)

s 52-1 — What this Division is about

Certain payments made under various Acts are wholly or partly exempt from income tax. This Division tells you if a payment is exempt and how much is exempt. Table of Subdivisions 52 ‑ A Exempt payments under the Social Security Act 1991 52 ‑ B Exempt payments under the Veterans’ Entitlements Act 1986 52 ‑ C Exempt payments made because of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 52 ‑ CA Exempt payments under the Military Rehabilitation and Compensation Act 2004 52 ‑ CB Exempt payments under the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 52 ‑ CC Exempt payments under the Treatment Benefits (Special Access) Act 2019 52 ‑ E Exempt payments under the ABSTUDY scheme 52 ‑ F Exemption of Commonwealth education or training payments 52 ‑ G Exempt payments under the A New Tax System (Family Assistance) (Administration) Act 1999 52 ‑ H Other exempt payments

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5))

s 52-5 — What this Subdivision is about

This Subdivision tells you: (a) the payments under the Social Security Act 1991 that are wholly or partly exempt from income tax; and (b) any special circumstances, conditions or exceptions that apply to a payment in order for it to be exempt; and (c) how to work out how much of a payment is exempt. Table of sections Operative provisions 52 ‑ 10 How much of a social security payment is exempt? 52 ‑ 15 Supplementary amounts of payments 52 ‑ 20 Tax ‑ free amount of an ordinary payment after the death of your partner 52 ‑ 25 Tax ‑ free amount of certain bereavement lump sum payments 52 ‑ 30 Tax ‑ free amount of certain other bereavement lump sum payments 52 ‑ 35 Tax ‑ free amount of a lump sum payment made because of the death of a person you are caring for 52 ‑ 40 Provisions of the Social Security Act 1991 under which payments are made

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5))