Income Tax Assessment Act 1936

s 160AAA — Rebate in respect of certain benefits etc.

(1) In this section: rebatable benefit means an amount: (a) paid by way of a benefit under Part 2.11, 2.11A, 2.12, 2.15 or 2.23B of the Social Security Act 1991 ; or (aa) paid by way of parenting payment that is PP (partnered) under the Social Security Act 1991 , to the extent that the amount is not exempt under Division 52 of the Income Tax Assessment Act 1997 ; or (ab) paid from the Commonwealth by way of an ex ‑ gratia payment to which subsection (2) applies; or (b) consisting of a Commonwealth education or training payment (see subsection 6(1)), except where the recipient, or the individual on whose behalf the recipient receives the payment, is an employee of any person who is entitled to a Commonwealth subsidy in respect of the employment; or (e) paid by way of income support to farmers and small business owners affected by Cyclone Larry or Cyclone Monica; or (f) known as an interim income support payment and paid under section 65 of the Public Governance, Performance and Accountability Act 2013 (which deals with act of grace payments by the Commonwealth); or (g) known as the Equine Workers Hardship Wage Supplement Payment. (2) This subsection applies to an ex ‑ gratia payment known as income support allowance for special category visa (subclass 444) holders if the payment is for a disaster: (a) occurring in Australia during the 2014 ‑ 15 financial year or a later financial year; and (b) for which a determination under subsection 36A(1) of the Social Security Act 1991 has been made. (3) Subject to subsections (4) and (4A), where the assessable income of a taxpayer of a year of income includes an amount of rebatable benefit, the taxpayer is entitled in the taxpayer’s assessment in respect of income of the year of income to a rebate of tax of an amount (if any) ascertained in accordance with the regulations. (4) Where, apart from this subsection, the taxpayer would be entitled in his or her assessment in respect of income of a year of income to a rebate of tax under both section 160AAAA (Tax rebate for low income aged persons and pensioners) and this section: (a) if the amounts of the rebates are the same—the taxpayer is entitled to only one of the rebates; and (b) if the amounts of the rebates are not the same—the taxpayer is not entitled to the lesser of the rebates. (4A) If, apart from this subsection: (a) the taxpayer would be entitled in his or her assessment in respect of income of a year of income to a rebate of tax under this section; and (b) the taxpayer is the beneficiary of a trust; and (c) the trustee of the trust is entitled to a rebate of tax for the year of income under section 160AAAB in respect of the taxpayer; then: (d) if the amounts of the rebates are the same, or the amount of the rebate under this section is the lesser amount—the taxpayer is not entitled to the rebate under this section; or (e) if the amount of the rebate under this section is the greater amount—the trustee is not entitled to the rebate under section 160AAAB. (5) Regulations made for the purposes of this section may be expressed to apply in relation to a year of income any part of which occurred before the notification of the regulations.

Amendment history: Inserted by No 106 of 1982, effective 30 Oct 1982 (s 2) | Amended by No 124 of 1984, effective s 3(b): 1 July 1984 (s 2(2)) Remainder: 19 Oct 1984 (s 2(1)) | Amended by No 123 of 1985, item 30, effective s 10–36: 28 Oct 1985 (s 2) | Amended by No 173 of 1985, item 17, effective s 4, 5(3), 17 and 20–22: 22 May 1986 (s 2(4)) s 5(1): 6 June 1985 (s 2(2)) s 5(2): 1 Nov 1985 (s 2(3)) s 6–12, 14–16, 18, 19, 23, 24: 16 Dec 1985 (s 2(1)) s 13: never commenced (s 2(4)) | Amended by No 49 of 1986, effective s 4–29: 24 June 1986 (s 2(1)) | Amended by No 109 of 1986, effective s 4(2)–(9) and Sch: 4 Nov 1986 (s 2) | Amended by No 154 of 1986, item 28 | item 26, effective s 23–25, 26(a), 27, 29–39, 41–48, 49(1), (2), (4)–(6), (8)–(11) and 50: 18 Dec 1986 (s 2(1)) s 26(b), (c), 28, 40, 49(3) and (7): 1 Jan 1987 (s 2(4) and gaz 1986, No S650) | Amended by No 108 of 1987, item 17, effective s 4–40: 13 Nov 1987 (s 2) | Amended by No 78 of 1988, item 56 | item 29 | item 1987 | item 1 | item 66, effective s 8–13, 14(1), 16–36, 38, 55(1)–(14), 56, 57 and Sch: 24 June 1988 (s 2(1)) s 14(2): 1 July 1988 (s 2(2)) s 15: 22 Dec 1986 (s 2(3)) s 37, 39–53 and 55(15)–(25):1 Nov 1988 (s 2(4) and gaz 1988, No S331) | Amended by No 95 of 1988, item 52, effective s 12–43, 44(b), 45–52, 54–58 and Sch: 24 Nov 1988 (s 2(1)) s 44(a) and 54(11): 16 Mar 1989 (s 2(2)) | Amended by No 107 of 1989, Sch 1 item 16, effective s 9–23, 32 and Sch 1: 30 June 1989 (s 2(1)) | Repealed and substituted by No 57 of 1990, item 40 | Sch 2 item 40, effective s 6–58, 61–65, Sch 1 and 2: 16 June 1990 (s 2) | Amended by No 100 of 1991, Sch 2 item 49, effective s 15–28, 30–32, 33(b), (e), (f), 34–76 and 79–84): 27 June 1991 (s 2(1)) s 29 and 77: 24 Apr 1991 (s 2(3), (6)) s 33(a): 16 June 1990 (s 2(4)) s 33(c) and (d): 30 June 1989 (s 2(5)) s 78: 8 Jan 1991 (s 2(7)) | Amended by No 216 of 1991, Sch 1 item 133, effective s 10, 12–39, 41, 43, 44, 67–81, 83–86, 89(1), (3)–(19), 91, 92, 102, 103 and Sch 1–4: 24 Dec 1991 (s 2(1)) s 11 and 89(2): 22 Jan 1991 (s 2(2)) s 40 and 42: 6 Jan 1992 (s 2(3)) s 45, 46, 48–51, 54–58, 60–66, 90(1), (3)–(14), 93–96 and 98–101: 21 Aug 1991 (s 2(4)) s 47, 52, 53, 59, 90(2) and 97: 3 pm (A.C.T) 20 Aug 1991 (s 2(5)) s 82(2): 25 Dec 1991 (s 2(6)) | Amended by No 191 of 1992, item 21, effective s 4–35: 21 Dec 1992 (s 2) | Amended by No 125 of 1994, item 92, effective Sch (items 89–93): 18 Oct 1994 (s 2) | Amended by No 138 of 1994, item 88, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 174 of 1994, Sch 1 item 171 | Sch 1 item 172 | Sch 3 item 38 | Sch 4 item 50 | Sch 4 item 51, effective s 14, 15 and Sch 4 (items 38–41, 47–51): 1 Jan 1995 (s 2(5)) Sch 1 (items 163–174): 1 July 1995 (s 2(1)) Sch 3 (items 34–38): 20 Sept 1994 (s 2(2)) | Amended by No 184 of 1994, Sch 3 item 60, effective Sch 3 (items 55–62): 1 Jan 1995 (s 2) | Amended by No 169 of 1995, Sch 3 item 26, effective Sch 1 (items 1–14, 16), Sch 2 (items 1–8, 11–15), Sch 3 (items 1–36, 40–44) and Sch 8 (items 1–5): 16 Dec 1995 (s 2(1)) Sch 3 (items 37–39): 1 July 1994 (s 2(2)) Sch 10 (item 2): 13 Oct 1994 (s 2(5)) | Amended by No 1 of 1996, Sch 11 item 6 | Sch 11 item 7 | Sch 11 item 17 | Sch 11 item 18, effective Sch 11 (items 1–7): 1 July 1996 (s 2(4)(d)) Sch 11 (items 8, 9): 20 Sept 1996 (s 2(5)(d)) Sch 11 (items 10–21): 1 July 1997 (s 2(6)) | Amended by No 122 of 1997, Sch 1 item 11 | Sch 1 item 12 | Sch 1 item 13, effective s 4, Sch 1 (items 1–15, 20), Sch 3 (items 1, 2, 6–21) and Sch 5: 8 July 1997 (s 2(1)) Sch 1 (items 17–19): 3 June 1990 (s 2(2)) Sch 1 (items 22, 23): 1 Sept 1994 (s 2(4)) Sch 1 (item 24): 1 Jan 1993 (s 2(3)) Sch 3 (items 3, 4): 24 June 1986 (s 2(6)) Sch 3 (item 5): 30 June 1992 (s 2(7)) Sch 4: 20 Jan 1997 (s 2(8)) Sch 6: 27 June 1996 (s 2(9)) Sch 8: 19 Dec 1996 (s 2(11)) | Amended by No 179 of 1997, Sch 2 item 11, effective Sch 2 (items 10, 11): 25 Nov 1997 (s 2) | Amended by No 197 of 1997, Sch 1 item 323 | Sch 1 item 324, effective Sch 1 (items 313–337): 20 Mar 1998 (s 2(2)) | Amended by No 45 of 1998, Sch 12 item 8 | Sch 12 item 9, effective Sch 12 (items 1–24): 1 July 1998 (s 2(1)) | Amended by No 102 of 1998, Sch 2 item 2, effective Sch 2 (items 1, 2): 30 July 1998 (s 2) | Amended by No 94 of 1999, Sch 4 item 1, effective s 4, Sch 3 (items 1–3), Sch 4, Sch 5 (items 23–35) and Sch 6 (items 67–73): 16 July 1999 (s 2(1)) | Amended by No 76 of 2000, Sch 1 item 1 | Sch 1 item 2, effective Sch 1 (items 1–5, 8(1)–(3)): 28 June 2000 (s 2) | Amended by No 144 of 2000, Sch 2 item 6, effective Sch 2 (items 5, 6) and Sch 3 (item 7(3), 8):18 Dec 2000 (s 2(2) and gaz, 2000 No S634) | Amended by No 44 of 2001, Sch 1 item 8 | Sch 1 item 9 | Sch 1 item 10 | Sch 2 item 1 | Sch 2 item 2, effective Sch 1: 25 May 2001 (s 2) | Amended by No 80 of 2006, Sch 1 item 1 | Sch 2 item 1 | Sch 3 item 1, effective Sch 1 (items 1, 4), Sch 2, Sch 3 (items 1, 5), Sch 4 (items 3, 4, 14, 21, 22, 30), Sch 6 (item 2) and Sch 9: 30 June 2006 (s 2(1) items 2–4, 6, 7) Sch 4 (items 15–19): 30 June 2002 (s 2(1) item 5) | Amended by No 130 of 2007, Sch 3 item 1, effective Sch 3 (item 1): 18 Aug 2007 (s 2) | Amended by No 38 of 2008, Sch 9 item 1, effective Sch 9 (items 1, 4) and Sch 11: 24 June 2008 (s 2(1) item 7) | Amended by No 97 of 2008, Sch 3 item 35, effective Sch 1 (items 1, 2, 12) and Sch 3 (items 5–43): 3 Oct 2008 (s 2(1) items 2, 3) | Amended by No 159 of 2011, Sch 3 item 1 | Sch 3 item 3 | Sch 3 item 8 | Sch 3 item 12 | Sch 3 item 13 | Sch 3 item 14 | Sch 3 item 15 | Sch 3 item 16, effective Sch 1 (items 1–3) and Sch 3 (items 1–16, 24): 1 July 2012 (s 2(1) items 2, 5) Sch 1 (items 4–6): repealed before commencing (s 2(1) item 3) | Amended by No 62 of 2013, Sch 1 item 11, effective Sch 1 (item 11): 1 Oct 2013 (s 2) | Amended by No 13 of 2014, Sch 2 item 32, effective Sch 2 (items 31, 32, 56): 1 July 2014 (s 2(1) item 3) | Amended by No 36 of 2015, Sch 5 item 39, effective Sch 5 (items 38, 39, 74–77) and Sch 7: 14 Apr 2015 (s 2) | Amended by No 25 of 2017, Sch 4 item 1 | Sch 4 item 2, effective Sch 4 (items 1, 2): 5 Apr 2017 (s 2(1) item 6) | Amended by No 26 of 2018, Sch 5 item 26 | Sch 5 item 140 | Sch 6 item 5 | Sch 6 item 64 | Sch 7 item 1 | Sch 7 item 69, effective Sch 1 (items 12, 13, 342–354), Sch 2 (items 1, 2, 82–93) and Sch 3 (items 3, 4, 98–111): 20 Mar 2020 (s 2(1) items 2, 4, 5) Sch 5 (items 26–31, 139–148): 20 Sept 2020 (s 2(1) item 8) Sch 6 (items 5, 63–72) and Sch 7 (items 1, 68–77): 1 Jan 2022 (s 2(1) items 10, 11) | Amended by No 107 of 2020, Sch 3 item 1, effective Sch 3 (item 1): 27 Nov 2020 (s 2(1) item 3) | Amended by No 67 of 2024, Sch 5 item 41 | Sch 5 item 42, effective Sch 5 (items 41–43, 48): 1 Oct 2024 (s 2(1) item 10)

s 160AAB — Rebate in respect of amounts assessable under section 26AH

(1) In this section: eligible 26AH amount , in relation to a year of income, means an amount included in assessable income under section 26AH in relation to an eligible policy within the meaning of that section issued by: (a) a life assurance company, not being a life assurance company the whole of the income of which of the year of income is exempt from tax; (c) the Government Insurance Office of New South Wales; (d) Suncorp Insurance and Finance, being a body corporate established by a law of Queensland; (e) the State Government Insurance Commission established by a law of South Australia; (f) the State Insurance Office established by a law of Victoria; or (g) the State Government Insurance Corporation established by a law of Western Australia. statutory percentage means: (a) if the policy concerned was issued by a friendly society: (i) if the year of income is earlier than the 2002 ‑ 03 year of income—33%; or (ii) if the year of income is the 2002 ‑ 03 year of income or a later year of income—30%; or (b) otherwise: (i) if the year of income is earlier than the 2001 ‑ 02 year of income—39%; or (ii) if the year of income is the 2001 ‑ 02 year of income—34%; or (iii) if the year of income is the 2002 ‑ 03 year of income or a later year of income—30%. (2) A taxpayer, not being a taxpayer in the capacity of trustee of a trust estate, is entitled in his or her assessment in respect of income of a year of income to a rebate of tax equal to the statutory percentage of an eligible 26AH amount included in his or her assessable income of the year of income. (3) Where: (a) an amount is included under section 97, 98A or 100 in the assessable income of a year of income of a taxpayer being a beneficiary of a trust estate otherwise than in the capacity of trustee of another trust estate; and (b) the whole or a part of the amount so included (which whole or part is in this subsection referred to as the rebatable amount ) is attributable to an eligible 26AH amount included in the assessable income of the year of income of the trust estate or of another trust estate; the taxpayer is entitled in his or her assessment in respect of income of the year of income to a rebate of tax equal to the statutory percentage of the rebatable amount. (4) Where: (a) a taxpayer being the trustee of a trust estate is liable to be assessed and to pay tax in pursuance of section 98 in respect of a share of the net income of the trust estate of a year of income; and (b) the whole or part of that share (which whole or part is in this subsection referred to as the rebatable amount ) is attributable to an eligible 26AH amount included in the assessable income of the year of income of the trust estate or of another trust estate; the taxpayer is entitled in that assessment to a rebate of tax equal to the statutory percentage of the rebatable amount. (5) Where: (a) a taxpayer being the trustee of a trust estate is liable to be assessed and to pay tax in pursuance of section 99 or 99A in respect of the whole or a part (which whole or part is in this subsection referred to as the relevant trust income ) of the net income of the trust estate of a year of income; and (b) the whole or a part of the relevant trust income (which whole or part is in this subsection referred to as the rebatable amount ) is attributable to an eligible 26AH amount included in the assessable income of the year of income of the trust estate or of another trust estate; the taxpayer is entitled in that assessment to a rebate of tax equal to the statutory percentage of the rebatable amount. (5A) A taxpayer being the trustee of a complying superannuation fund, a non ‑ complying superannuation fund, a complying approved deposit fund, a non ‑ complying approved deposit fund or a pooled superannuation trust is entitled in the taxpayer’s assessment in respect of income of a year of income to a rebate of tax equal to the statutory percentage of any eligible section 26AH amount included in the taxpayer’s assessable income of the year of income. (6) Where an eligible 26AH amount is included in the assessable income of a partnership of a year of income in the calculation of the net income or partnership loss of the partnership of the year of income, a partner in the partnership is entitled in his or her assessment in respect of income of the year of income to a rebate of tax equal to the statutory percentage of the amount by which the taxable income of the partner of the year of income exceeds the amount that could reasonably be expected to be that taxable income if the eligible 26AH amount had not been included in the assessable income of the partnership of the year of income.

Amendment history: Inserted by No 14 of 1984, effective 12 Apr 1984 (s 2) | Amended by No 47 of 1984, effective 25 June 1984 (s 2) | Amended by No 173 of 1985, item 18, effective s 4, 5(3), 17 and 20–22: 22 May 1986 (s 2(4)) s 5(1): 6 June 1985 (s 2(2)) s 5(2): 1 Nov 1985 (s 2(3)) s 6–12, 14–16, 18, 19, 23, 24: 16 Dec 1985 (s 2(1)) s 13: never commenced (s 2(4)) | Amended by No 109 of 1986, effective s 4(2)–(9) and Sch: 4 Nov 1986 (s 2) | Amended by No 154 of 1986, item 29 | item 26, effective s 23–25, 26(a), 27, 29–39, 41–48, 49(1), (2), (4)–(6), (8)–(11) and 50: 18 Dec 1986 (s 2(1)) s 26(b), (c), 28, 40, 49(3) and (7): 1 Jan 1987 (s 2(4) and gaz 1986, No S650) | Amended by No 11 of 1988, item 26, effective s 9–13 and 15–40: 26 Apr 1988 (s 2(1)) s 14: 24 June 1986 (s 2(2)) | Amended by No 97 of 1989, Sch 2 item 12 | Sch 2 item 1988 | Sch 1 item 1989, effective s 4–9, 11–15 and Sch 1: 30 June 1989 (s 2) | Amended by No 105 of 1989, item 27, effective s 4, 5(a)–(n), (p) and 6–66: 30 June 1989 (s 2(1)) s 5(o): 18 Dec 1987 (s 2(2)) | Amended by No 55 of 1993, item 19, effective s 8–12: 27 Oct 1993 (s 2(1)) s 13: 1 July 1995 (s 2(2)(a)) s 14: repealed before commencing (s 2(3)(a)) s 15: 1 July 2000 (s 2(4)) | Amended by No 89 of 2000, Sch 2 item 25, effective s 4, Sch 1 (item 66), Sch 2 (items 1–24, 35, 36, 48, 53–62), Sch 3 (items 1–29, 98–100), Sch 5 (items 32–34(1)) and Sch 8 (items 1–8, 11): 30 June 2000 (s 2(1)) Sch 1 (item 67): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 2 (items 25, 26) and Sch 3 (items 30–97): 1 July 2000 (s 2(3), (8), (9)) | Amended by No 101 of 2004, effective s 4, Sch 1 (items 1, 4), Sch 8, Sch 10 (items 1–6) and Sch 11 (items 161, 162): 30 June 2004 (s 2(1) items 1, 2, 9, 10, 18) Sch 11 (items 1, 2): 16 July 1999 (s 2(1) item 11) Sch 11 (items 17–34, 38–43): 30 June 2000 (s 2(1) item 13) Sch 11 (items 44–46, 49–51, 60–87, 101–127): 1 July 2000 (s 2(1) item 14) Sch 11 (items 131–140): 1 July 2001 (s 2(1) item 16) | Amended by No 15 of 2007, Sch 1 item 107, effective Sch 1 (items 1–8, 22–149, 406(1)–(3)) and Sch 3 (items 6, 7): 15 Mar 2007 (s 2(1) items 2, 6) | Amended by No 41 of 2011, effective Sch 5 (items 15–17): 28 June 2011 (s 2(1) item 11) Sch 5 (items 57–73, 79, 176–367, 376–382, 412, 413): 27 June 2011 (s 2(1) items 17, 23)

s 160AD — Maximum amount of rebates

Notwithstanding anything contained in this or any other Act, the sum of the rebates allowable under this Act shall not exceed the amount of tax which would otherwise be payable by the taxpayer.

Amendment history: Inserted by No 22 of 1942, effective 7 June 1942 (s 2) | Amended by No 37 of 1945, effective s 3–9: 11 Oct 1945 (s 2) | Amended by No 48 of 1950, effective s 3–34 and 36: 14 Dec 1950 (s 2) | Repealed and substituted by No 143 of 1965, effective 14 Feb 1966 (s 2)

s 160ADA — Most tax offsets under the 1997 Assessment Act are treated as rebates

A tax offset under a provision of the Income Tax Assessment Act 1997 is taken to be a rebate for the purposes of this Act, unless that provision corresponds to a provision of this Act that provides for a credit. Note: If the tax offset provision does correspond to a credit provision, the tax offset is treated as a credit: see section 6D.

Amendment history: Inserted by No 47 of 1998, Sch 9 item 8 | Sch 9 item 10, effective Sch 3 (items 17–20), Sch 4 (items 1, 6–65, 69), Sch 6, 7, Sch 8 (items 1–10) and Sch 9 (items 7–14, 15(3), 16): 23 June 1998 (s 2(1)) | Amended by No 143 of 2007, Sch 1 item 6D | Sch 1 item 63, effective Sch 1 (items 2, 3, 18–127, 222, 223, 224(1), (2), 225, 226), Sch 4 (items 1–46, 51, 52), Sch 7 (items 9–17, 104(2)) and Sch 8: 24 Sept 2007 (s 2(1) items 2, 4, 11, 12)

s 160ZZVA — Object

(1) The object of this Part is: (a) to assist in calculating that part of a foreign bank’s taxable income that is referable to certain activities of its Australian branch; and (b) to make it clear that withholding tax will apply to amounts that are taken by this Part to be interest paid by the branch to the bank. Note: This Part also: (a) applies to foreign entities that are financial entities in the same way as it applies to foreign banks; and (b) applies to permanent establishments in Australia of foreign entities that are financial entities in the same way as it applies to Australian branches of foreign banks. See Division 4. (2) For the purpose of achieving the object mentioned in subsection (1), this Part requires, in the circumstances stated in this Part and not otherwise, that the Australian branch is to be treated as if it were a separate legal entity from the bank.

Amendment history: Inserted by No 138 of 1994, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 64 of 2005, Sch 3 item 1, effective Sch 1 (items 1–6), Sch 3 (items 1–4) and Sch 4 (items 2–27, 38, 39): 26 June 2005 (s 2(1) items 2, 4) Sch 2 (items 1–9): 27 June 2005 (s 2(1) item 3)

s 160ZZVB — Application

(1) It is the intention that, in so far as this Part is to be applied to identify amounts of income and expenditure that are taken into account in calculating that part of a foreign bank’s taxable income of a year of income that is referable to certain activities of its Australian branch, the provisions of this Part are to be applied in their entirety. (2) If, as a result of the application of this Part: (a) the taxable income of a year of income of a foreign bank that is attributable to activities carried on by the bank through its Australian branch is greater than the amount that would be that taxable income if this Part did not apply; or (b) a foreign bank would be taken not to incur a loss in a year of income in respect of activities carried on by the bank through its Australian branch that it would be taken to have incurred if this Part did not apply; or (c) the amount of a loss that a foreign bank would be taken to incur in a year of income in respect of activities carried on by the bank through its Australian branch is less than the amount of the loss that it would be taken to have incurred if this Part did not apply; the bank may elect that this Part is not to apply in the calculation of its taxable income of that year of income. (3) If a foreign bank makes an election as mentioned in subsection (2): (a) this Part does not apply in the calculation of the bank’s taxable income of the year of income to which the election relates and the bank may furnish returns, and is liable to pay tax, accordingly; but (b) the election does not affect the operation of this Part in respect of the application of withholding tax to amounts that are taken by this Part to be interest paid by the branch to the bank.

Amendment history: Inserted by No 138 of 1994, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 21 of 2015, Sch 7 item 11, effective Sch 2 (items 36, 44–46): 1 May 2015 (s 2(1) item 3) Sch 6 (items 3–15, 73): 19 Mar 2015 (s 2(1) item 7) Sch 6 (items 38–50, 74–79): never commenced (s 2(1) item 12) Sch 7 (items 9–12): 20 Mar 2015 (s 2(1) item 15) | Amended by No 84 of 2018, Sch 1 item 5, effective Sch 1 (items 2–7, 15), Sch 2 (items 4, 5, 9, 10) and Sch 4 (item 1): 1 Oct 2018 (s 2(1) item 1)

s 160ZZV — Definitions

In this Part, unless the contrary intention appears: accounting records includes: (a) invoices, receipts, vouchers and other documents of prime entry; and (b) any working papers and other documents that are necessary to explain the methods and calculations by which accounts are made up. Australian branch , in relation to a foreign bank, means a permanent establishment in Australia through which the bank carries on banking business. derivative transaction means a Division 230 financial arrangement (within the meaning of the Income Tax Assessment Act 1997 ) that is entered into for the purpose of eliminating, reducing or altering the risk of adverse financial consequences that might result from changes in rates of interest or changes in rates of exchange between currencies, or for the purpose of making a profit from such changes, but does not include a transaction entered into for the provision of finance or a foreign exchange transaction. foreign bank means a body corporate that is a foreign ADI (authorised deposit ‑ taking institution) for the purposes of the Banking Act 1959 . foreign exchange transaction means a transaction by which different currencies are exchanged. interest has the same meaning as in Division 11A of Part III. offshore banking unit has the same meaning as in Division 11A of Part III. time of establishment , in relation to an Australian branch of a foreign bank, means the time when the bank began to carry on business through the permanent establishment in Australia that constitutes the branch.

Amendment history: Inserted by No 138 of 1994, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 95 of 1997, Sch 5 item 19, effective Sch 1 (item 23): 30 June 1997 (s 2(1)) | Amended by No 48 of 1998, Sch 3 item 90, effective Sch 1 (items 83–97): 1 July 1998 (s 2(2)) | Amended by No 15 of 2009, Sch 1 item 41 | Sch 1 item 42, effective Sch 1 (items 31–51, 102–105): 26 Mar 2009 (s 2(1) item 2)

s 160ZZW — Certain provisions to apply as if Australian branch of foreign bank were a separate legal entity

(1) Subsections (2), (3), (4) and (5) apply only: (a) for the purposes of sections 160ZZZ, 160ZZZA, 160ZZZC, 160ZZZE and 160ZZZF as they have effect in the determination under this Act of the liability of a foreign bank to tax (other than withholding tax) in respect of income derived from an Australian branch of the bank; and (b) for the purposes of the provisions of this Act other than this Part as those provisions apply in relation to amounts that are taken by this Part to have been received from a foreign bank by its Australian branch or to have been paid to a foreign bank by its Australian branch; and (c) for the purposes of section 160ZZZJ as it has effect in determining the liability of a foreign bank to withholding tax in respect of amounts paid to the bank by an Australian branch of the bank. (1A) To avoid doubt, subsection (2) applies for the purposes of applying Subdivision 230 ‑ A of the Income Tax Assessment Act 1997 to a financial arrangement (within the meaning of that Act). Note: This means that it is possible for financial arrangements to be entered into between the bank and the branch and for the bank or the branch to have a gain or loss from such an arrangement dealt with under Division 230 of the Income Tax Assessment Act 1997 . (2) The branch and the bank are taken to be, and to have been since the time of establishment of the branch, separate legal entities. Note: For cross ‑ border transfer pricing, the rules in Subdivision 815 ‑ B of the Income Tax Assessment Act 1997 apply to the separate legal entity, rather than the rules for permanent establishments in Subdivision 815 ‑ C: see subsection 815 ‑ 210(3) of that Act. (3) The branch is taken to be, and to have been since the time of its establishment, a company having a share capital all the shares in which are or were beneficially owned by the bank. (4) The branch is taken to be a non ‑ resident and to have been a non ‑ resident since the time of its establishment.

Amendment history: Inserted by No 138 of 1994, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 162 of 2001, Sch 1 item 6, effective Sch 1 (items 2–13, 23–26): 1 July 2001 (s 2(1)) | Amended by No 15 of 2009, Sch 1 item 230 | Sch 1 item 43, effective Sch 1 (items 31–51, 102–105): 26 Mar 2009 (s 2(1) item 2) | Amended by No 101 of 2013, Sch 2 item 815 | Sch 2 item 10 | Sch 2 item 11, effective Sch 1 (items 1–8, 10) and Sch 2 (items 1, 8–19, 50): 29 June 2013 (s 2(1) items 2, 3)

s 160ZZX — Income of branch to have Australian source

(1) All income derived by a foreign bank through its Australian branch is taken, for the purposes of this Act, to be income derived from a source in Australia. (2) All gains from a Division 230 financial arrangement (within the meaning of the Income Tax Assessment Act 1997 ) made by a foreign bank through its Australian branch is taken, for the purposes of this Act, to be from an Australian source.

Amendment history: Inserted by No 138 of 1994, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 15 of 2009, Sch 1 item 44 | Sch 1 item 45, effective Sch 1 (items 31–51, 102–105): 26 Mar 2009 (s 2(1) item 2)

s 160ZZZ — Notional borrowing by branch from bank

(1) If an amount has been made available by a foreign bank for use by an Australian branch of the bank and is recorded in the branch’s accounting records as having been provided by the bank to the branch, that amount is taken, for the purposes of this Act, to have been borrowed by the branch from the bank when the amount became so available and to have been so borrowed in the currency in which the amount became so available. (2) If an amount has been made available by the branch to the bank in purported repayment of an amount that is taken, under subsection (1), to have been borrowed by the branch from the bank and the amount so made available is recorded in the branch’s accounting records as having been repaid by the branch to the bank, the amount that was so taken to have been borrowed is taken, for the purposes of this Act, to have been repaid by the branch to the bank when the amount became so available and to have been so repaid in the currency in which the amount became so available.

Amendment history: Inserted by No 138 of 1994, item 113, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3))

s 160ZZZA — Notional payment of interest by branch to bank

(1) If, under section 160ZZZ, an amount is taken, for the purposes of this Act, to have been borrowed (the notional borrowing ) in a particular currency from a foreign bank by an Australian branch of the bank, the following provisions have effect: (a) at any time (the relevant time ) when, in respect of the notional borrowing, an amount (the notional amount of interest ) is entered in the branch’s accounting records as interest for a period fixed by the bank, interest is taken, for the purposes of this Act, to be incurred by the branch, paid by the branch to the bank, and derived by the bank, in respect of the notional borrowing; (b) subject to the application of paragraph (c), the notional amount of interest is taken, for the purposes of this Act, to be the amount of interest so taken to be paid; (c) if the interest on the notional borrowing at the relevant time was at a rate of interest that exceeded the LIBOR that was applicable at the beginning of the relevant interest calculation period in relation to the notional borrowing, there is taken to have been entered in the branch’s accounting records at the relevant time, in lieu of the notional amount of interest, the amount that would have been so entered if interest on the notional borrowing for the relevant interest calculation period had been calculated at the LIBOR that was applicable at the beginning of that period. (2) For the purposes of this section, a reference to the LIBOR that was applicable at the beginning of the relevant interest calculation period in relation to the notional borrowing is a reference to: (a) the LIBOR applicable at the beginning of that period in respect of advances in the currency of that borrowing for a term the number of days in which was equal to the number of days in that period; or (b) if there was no LIBOR applicable at the beginning of that period in respect of advances in the currency of that borrowing for such a term: (i) the LIBOR applicable at the beginning of that period in respect of advances in that currency for a term the number of days in which most nearly approximated the number of days in that period; or (ii) if there were different LIBORs so applicable for different terms the number of days in each of which could be described as having most nearly approximated the number of days in that period—the LIBOR so applicable for the shorter of those terms. (3) For the purposes of this section: (a) a reference to LIBOR, in relation to a particular time, is a reference to the rate of interest applicable at that time in relation to banks in the London inter bank market as determined by reference to the Reuter Monitor Money Rates Service or any other published source; and (b) a reference to the relevant interest calculation period in relation to a notional borrowing from a foreign bank by an Australian branch of the bank is a reference to the period fixed by the bank for the calculation of the notional amount of interest in respect of the notional borrowing.

Amendment history: Inserted by No 138 of 1994, item 113, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 95 of 1997, Sch 5 item 20, effective Sch 1 (item 23): 30 June 1997 (s 2(1))

s 160ZZZC — Offshore banking units

If: (a) apart from this section, a foreign bank would be an offshore banking unit under a declaration made under subsection 128AE(2); and (b) the foreign bank has an Australian branch; this Act has effect as if the Australian branch were the offshore banking unit under the declaration.

Amendment history: Inserted by No 138 of 1994, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 64 of 2020, Sch 3 item 215, effective Sch 1: 1 July 2020 (s 2(1) item 2) Sch 3 (items 203–227, 325, 326): 1 Oct 2020 (s 2(1) item 6)

s 160ZZZE — Notional derivative transactions between branch and bank

If the accounting records of an Australian branch of a foreign bank reflect a derivative transaction notionally entered into by the branch with the bank: (a) the notional transaction is taken to be a transaction entered into by the branch with the bank; and (b) any amount entered in the branch’s accounting records as a payment or receipt in respect of the notional transaction is taken, for the purposes of this Act, to be an amount paid or received by the branch, as the case may be, in respect of the derivative transaction when the amount was so entered.

Amendment history: Inserted by No 138 of 1994, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3))

s 160ZZZF — Notional foreign exchange transactions between branch and bank

If the accounting records of an Australian branch of a foreign bank reflect a foreign exchange transaction notionally entered into by the branch with the bank: (a) the notional transaction is taken to be a transaction entered into by the branch with the bank; and (b) any amount entered in the branch’s accounting records as a payment or receipt in respect of the notional transaction is taken, for the purposes of this Act, to be an amount paid or received by the branch, as the case may be, in respect of the foreign exchange transaction when the amount was so entered.

Amendment history: Inserted by No 138 of 1994, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3))

s 160ZZZG — Losses

Subdivision 170 ‑ A of the Income Tax Assessment Act 1997 has effect as if an Australian branch of a foreign bank were a subsidiary of the bank and a resident of Australia.

Amendment history: Inserted by No 138 of 1994, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 39 of 1997, Sch 4 item 246, effective Sch 1: 1 July 1997 (s 2)

s 160ZZZH — Net capital losses

Subdivision 170 ‑ B of the Income Tax Assessment Act 1997 (about transfer of net capital losses within wholly ‑ owned groups of companies) has effect as if an Australian branch of a foreign bank were a 100% subsidiary (within the meaning of that Act) of the bank and an Australian resident (within the meaning of that Act).

Amendment history: Inserted by No 138 of 1994, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Repealed and substituted by No 46 of 1998, Sch 10 item 400, effective s 4, Sch 2 (items 49–522), Sch 3 (items 13–20), Sch 4 (items 12–27), Sch 5 (items 6–10), Sch 6 (items 8–30), Sch 7 (items 12–19), Sch 8 (items 2–9) and Sch 9 (items 7, 8): 22 June 1998 (s 2(1)–(4))

s 160ZZZI — Certain transactions to be disregarded

Any transaction entered into by a foreign bank otherwise than through its Australian branch: (a) under which finance is provided to the bank; or (b) that is a derivative transaction or a foreign exchange transaction; is to be disregarded for the purpose of determining whether a deduction is allowable to the bank under this Act.

Amendment history: Inserted by No 138 of 1994, item 113, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3))

s 160ZZZJ — Withholding tax on interest paid by branch to bank

(1) If: (a) an amount of interest is taken under section 160ZZZA to be paid to, and derived by, a foreign bank by an Australian branch of the bank; and (b) apart from this section, section 128B of this Act, and Subdivision 12 ‑ F in Schedule 1 to the Taxation Administration Act 1953 , would apply to an amount (the taxable amount ) that comprises the whole or a part of the amount so taken to be paid; the following subsections have effect. (2) Section 128B of this Act, and Subdivision 12 ‑ F in Schedule 1 to the Taxation Administration Act 1953 , apply only to the amount worked out using the formula: (3) An amount to which section 128B applies because of subsection (2) of this section is taken, for the purposes of section 128C, to be income that was derived by the bank when the amount of interest referred to in paragraph (1)(a) is taken to have been paid to the bank.

Amendment history: Inserted by No 138 of 1994, item 113, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 179 of 1999, Sch 18 item 34 | Sch 18 item 35, effective Sch 2 (items 20–47), Sch 3 (items 3–6), Sch 5 (item 74), Sch 6 (items 1–13, 24(1)–(4)), Sch 10 (items 22–24), Sch 11 (item 44), Sch 16 (items 3–17, 37) and Sch 17 (items 1, 2): 22 Dec 1999 (s 2(1), (4), (7)(b)–(d)) Sch 5 (items 1–64), Sch 11 (items 14–43, 45–79) and Sch 12 (item 3): 1 July 2000 (s 2(9), (12)) | Amended by No 162 of 2001, Sch 1 item 9 | Sch 1 item 25, effective Sch 1 (items 2–13, 23–26): 1 July 2001 (s 2(1)) | Amended by No 101 of 2006, Sch 2 item 402 | Sch 2 item 403, effective Sch 1 (items 1, 5–199), Sch 2 (items 118–565, 1017, 1023–1037) and Sch 6 (items 1–4, 6–15): 14 Sept 2006 (s 2(1) items 2, 4) Sch 3 (items 1–10) and Sch 4 (items 1–11): 1 Jan 2008 (s 2(1) item 3)

s 160ZZZK — Treatment like Australian branches of foreign banks

Objects (1) The main objects of this section are: (a) to treat foreign entities that are financial entities like foreign banks for the purposes of this Part; and (b) to treat Australian permanent establishments of foreign entities that are financial entities like Australian branches of foreign banks for the purposes of this Part. Foreign financial entities treated like foreign banks (2) This Part (except this Division) applies to a foreign entity that is a financial entity in the same way as this Part applies to a foreign bank. Australian permanent establishments treated like Australian branches (3) This Part (except this Division) applies to a permanent establishment in Australia of a foreign entity that is a financial entity in the same way as this Part applies to an Australian branch of a foreign bank. Definitions (4) In this section: financial entity has the meaning given by section 995 ‑ 1 of the Income Tax Assessment Act 1997 . foreign entity has the meaning given by section 995 ‑ 1 of the Income Tax Assessment Act 1997 .

Amendment history: Inserted by No 64 of 2005, effective Sch 1 (items 1–6), Sch 3 (items 1–4) and Sch 4 (items 2–27, 38, 39): 26 June 2005 (s 2(1) items 2, 4) Sch 2 (items 1–9): 27 June 2005 (s 2(1) item 3)

s 160ZZZL — Certain “hybrid mismatch” deductions denied

(1) Subsection (2) applies if: (a) either: (i) an amount of interest (a notional payment ) is taken under section 160ZZZA to be incurred by an Australian branch of a foreign bank in respect of a notional borrowing; or (ii) an amount (also a notional payment ) is taken under section 160ZZZE to be an amount paid by an Australian branch of a foreign bank in respect of a notional derivative transaction; and (b) the amount would, apart from this section, give rise to a deduction for the Australian branch in a year of income; and (c) the amount of the deduction exceeds the amount worked out under subsection (3). Neutralising hybrid mismatch outcomes (2) So much of the deduction as equals the excess worked out under paragraph (1)(c) is not allowable as a deduction for the year of income. Extent to which notional payment gives rise to a deduction/non ‑ inclusion outcome (3) For the purposes of paragraph (1)(c), sum the following amounts: (a) the amount of the notional payment that is subject to foreign income tax; (b) so much (if any) of the amount of the notional payment as it is reasonable to conclude is effectively funding expenses covered by subsection (4) or (5) (about non ‑ deductible third party expenses); (c) the amount (if any) of income or profits of the Australian branch that is both: (i) subject to Australian income tax for the purposes of subsection 832 ‑ 680(1) of the Income Tax Assessment Act 1997 in the year of income mentioned in paragraph (1)(b); and (ii) subject to foreign income tax for the purposes of subsection 832 ‑ 680(1) of the Income Tax Assessment Act 1997 in the foreign country in which the foreign bank is a resident. Non ‑ deductible third party expenses (4) For the purposes of paragraph (3)(b), if: (a) the notional payment is in respect of a notional borrowing; and (b) it is reasonable to conclude that the notional borrowing is effectively funded by actual borrowings by the foreign bank; then the expenses in respect of the actual borrowings are covered by this subsection to the extent (if any) that those expenses do not give rise to foreign income tax deductions. (5) For the purposes of paragraph (3)(b), if: (a) the notional payment is in respect of a notional derivative transaction; and (b) it is reasonable to conclude that the foreign bank has hedged or managed all or part of its risk in relation to the notional derivative transaction by entering into actual transactions; then the expenses in respect of the actual transactions are covered by this subsection to the extent (if any) that those expenses do not give rise to foreign income tax deductions. Safe harbour (6) The deduction is taken for the purposes of paragraph (1)(c) not to exceed the amount worked out under subsection (3) if the foreign bank adopts a recognised transfer pricing methodology in allocating expenditure and income between itself and all its branches.

Amendment history: Inserted by No 84 of 2018, Sch 1 item 6, effective Sch 1 (items 2–7, 15), Sch 2 (items 4, 5, 9, 10) and Sch 4 (item 1): 1 Oct 2018 (s 2(1) item 1)

s 160ZZZN — Adjusting if Australian branch derives dual inclusion income in a later year

(1) There is an adjustment under subsection (2) for the Australian branch in a year of income (the adjustment year ) if: (a) an amount of a deduction was not allowable for the branch in an earlier year of income under subsection 160ZZZL(2); and (b) this Part applies in the calculation of the foreign bank’s taxable income in the adjustment year; and (c) an amount of income or profits of the Australian branch is: (i) subject to Australian income tax for the purposes of subsection 832 ‑ 680(1) of the Income Tax Assessment Act 1997 in the adjustment year; and (ii) subject to foreign income tax for the purposes of that subsection in the foreign country in which the foreign bank is a resident. (2) So much of the amount of income or profits that satisfies paragraph (1)(c) as does not exceed the amount of the deduction that was not allowable is an amount the Australian branch can deduct in the adjustment year. (3) For the purposes of a later application of this section, treat the amount of the deduction that was not allowable under subsection 160ZZZL(2) as being reduced by the amount deducted under subsection (2).

Amendment history: Inserted by No 84 of 2018, Sch 1 item 6, effective Sch 1 (items 2–7, 15), Sch 2 (items 4, 5, 9, 10) and Sch 4 (item 1): 1 Oct 2018 (s 2(1) item 1)

s 160ZZZP — Dual inclusion income not to be applied more than once

(1) For the purposes of paragraphs 160ZZZL(3)(c) and 160ZZZN(1)(c), an amount of income or profits is to be disregarded if: (a) the amount is dual inclusion income; and (b) the amount has been applied by a provision of Division 832 of the Income Tax Assessment Act 1997 . (2) For the purposes of Division 832 of that Act, an amount of dual inclusion income is not available to be applied by a provision of that Division if it has been taken into account under paragraph 160ZZZL(3)(c) or subsection 160ZZZN(2).

Amendment history: Inserted by No 84 of 2018, effective Sch 1 (items 2–7, 15), Sch 2 (items 4, 5, 9, 10) and Sch 4 (item 1): 1 Oct 2018 (s 2(1) item 1)

s 160ZZZR — Interpretation

In this Division: dual inclusion income has the same meaning as in the Income Tax Assessment Act 1997. foreign income tax deduction has the same meaning as in the Income Tax Assessment Act 1997. subject to Australian income tax has the same meaning as in the Income Tax Assessment Act 1997. subject to foreign income tax has the same meaning as in the Income Tax Assessment Act 1997.

Amendment history: Inserted by No 84 of 2018, effective Sch 1 (items 2–7, 15), Sch 2 (items 4, 5, 9, 10) and Sch 4 (item 1): 1 Oct 2018 (s 2(1) item 1)

s 161 — Annual returns

Requirement to lodge a return (1) Every person must, if required by the Commissioner by legislative instrument, give to the Commissioner a return for a year of income within the period specified in the instrument. Note: The Commissioner may defer the time for giving the return: see section 388 ‑ 55 in Schedule 1 to the Taxation Administration Act 1953 . (1A) The Commissioner may, in the instrument, exempt from liability to furnish returns such classes of persons not liable to pay income tax as the Commissioner thinks fit, and a person so exempted need not furnish a return unless the person is required by the Commissioner to do so. (2) If the taxpayer is absent from Australia, or is unable from physical or mental infirmity to make such return, the return may be signed and delivered by some person duly authorized. (3) Nothing in this section prevents an approval by the Commissioner of a form of return under section 35D of the Superannuation Industry (Supervision) Act 1993 from requiring or permitting a return under that section to be attached to, or to form part of, a return under this section. Note: However, the rules applicable to a return under section 35D of the Superannuation Industry (Supervision) Act 1993 are those specified in that Act.

Amendment history: Amended by No 85 of 1959, effective s 3–36: 2 Dec 1959 (s 2(1)) | Amended by No 85 of 1967, item 19 | item 35, effective s 2(2), (3) and 3–37: 8 Nov 1967 (s 2(1)) | Amended by No 87 of 1978, item 26, effective s 17–71: 22 June 1978 (s 2) | Amended by No 52 of 1986, item 20, effective 24 June 1986 (s 2) | Amended by No 73 of 1989, item 4, effective Sch: 21 June 1989 (s 2) | Amended by No 20 of 1990, item 29, effective s 6–8, 9 (amdt to s 78(1)(a)(xcv) Income Tax Assessment Act 1936) and 10–50: 17 Jan 1990 (s 2(1)) s 9 (amdt to s 78(1)(a)(xcvi) Income Tax Assessment Act 1936): 10 Nov 1989 (s 2(2)) | Amended by No 174 of 1997, Sch 7 item 5 | Sch 7 item 6, effective s 4, Sch 1–5, Sch 6 (items 17–23(2), (3)), Sch 7 (items 1–16, 32(1)) and Sch 9 (items 24–30(2), (3)): 21 Nov 1997 (s 2(1)–(3)) | Amended by No 121 of 1999, Sch 2 item 6, effective Sch 2 (items 5, 6): 8 Oct 1999 (s 2(1)) | Amended by No 24 of 2000, Sch 11 item 5, effective Sch 11 (item 5): 12 May 2000 (s 2(11)) | Amended by No 91 of 2000, Sch 2 item 131 | Sch 2 item 132 | Sch 2 item 145, effective Sch 2 (items 13–48, 130–142, 144(1), 145–147): 1 July 2000 (s 3(1)) | Amended by No 154 of 2007, Sch 3 item 3, effective Sch 1 (item 172A): 1 Jan 2008 (s 2(1) item 3) Sch 1 (item 296) and Sch 3 (item 3): 24 Sept 2007 (s 2(1) items 6, 7) | Amended by No 64 of 2020, Sch 3 item 216 | Sch 3 item 217 | Sch 3 item 218, effective Sch 1: 1 July 2020 (s 2(1) item 2) Sch 3 (items 203–227, 325, 326): 1 Oct 2020 (s 2(1) item 6)

s 161A — Form and content of returns

(1) The return must be in the approved form. Electronic returns (2) An approval given by the Commissioner of a form of return may require or permit the return to be given on a specified kind of data processing device, or by way of electronic transmission, in accordance with specified software requirements.

Amendment history: Inserted by No 174 of 1997, effective s 4, Sch 1–5, Sch 6 (items 17–23(2), (3)), Sch 7 (items 1–16, 32(1)) and Sch 9 (items 24–30(2), (3)): 21 Nov 1997 (s 2(1)–(3)) | Amended by No 91 of 2000, Sch 2 item 133, effective Sch 2 (items 13–48, 130–142, 144(1), 145–147): 1 July 2000 (s 3(1))

s 161AA — Contents of returns of full self ‑ assessment taxpayers

A full self ‑ assessment taxpayer must, in a return for a year of income, specify: (a) its taxable income or its net income for that year of income (or that it has no taxable income or net income for that year); and (b) the amount of the tax payable on that taxable income or net income (or that no tax is payable); and (ba) the total of its tax offset refunds for that year of income (or that it can get no such refund for that year of income); or (c) the amount of interest (if any) payable by the taxpayer under section 102AAM for that year of income; and (d) for a company that is an RSA provider, or a trustee of a superannuation fund in relation to the year of income: (i) its no ‑ TFN contributions income as defined by section 295 ‑ 610 of the Income Tax Assessment Act 1997 (or that it has no no ‑ TFN contributions income); and (ii) the amount of the income tax payable on that income (or that no income tax is payable).

Amendment history: Inserted by No 179 of 1999, Sch 18 item 6, effective Sch 2 (items 20–47), Sch 3 (items 3–6), Sch 5 (item 74), Sch 6 (items 1–13, 24(1)–(4)), Sch 10 (items 22–24), Sch 11 (item 44), Sch 16 (items 3–17, 37) and Sch 17 (items 1, 2): 22 Dec 1999 (s 2(1), (4), (7)(b)–(d)) Sch 5 (items 1–64), Sch 11 (items 14–43, 45–79) and Sch 12 (item 3): 1 July 2000 (s 2(9), (12)) | Amended by No 161 of 2005, effective Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2) | Amended by No 9 of 2007, Sch 1 item 4, effective Sch 1 (items 3, 4, 24(1), 26, 27, 37): 15 Mar 2007 (s 2(1) item 2) | Amended by No 88 of 2009, Sch 5 item 317, effective s 4, Sch 1, Sch 3 (items 2–4), Sch 4 (items 1, 5) and Sch 5 (items 21–112, 306–318): 18 Sept 2009 (s 2(1) items 1, 2, 6, 7, 10) Sch 2 (items 2, 3): 1 Oct 2009 (s 2(1) item 3) | Amended by No 88 of 2013, Sch 5 item 13, effective s 4 and Sch 7 (item 199): 28 June 2013 (s 2(1) items 1, 21) Sch 5 (items 11–20, 24): 1 July 2013 (s 2(1) item 10) Sch 5 (items 28–34, 36–38) and Sch 6 (items 1, 2, 49): 29 June 2013 (s 2(1) items 11, 13) Sch 5 (item 35): 29 June 2013 (s 2(1) item 12)

s 161G — Tax agent to give taxpayer copy of notice of assessment

Where a taxpayer has given the address of a registered tax agent as the taxpayer’s address for service, the registered tax agent must give the taxpayer the original of, or a copy of, any notice of assessment in respect of that taxpayer that is delivered to that address. Penalty: 30 penalty units.

Amendment history: Inserted by No 174 of 1997, effective s 4, Sch 1–5, Sch 6 (items 17–23(2), (3)), Sch 7 (items 1–16, 32(1)) and Sch 9 (items 24–30(2), (3)): 21 Nov 1997 (s 2(1)–(3))

s 162 — Further returns and information

A person must, if required by the Commissioner, whether before or after the end of the year of income, give the Commissioner, within the time required and in the approved form: (a) a return or a further or fuller return for a year of income or a specified period, whether or not the person has given the Commissioner a return for the same period; or (b) any information, statement or document about the person’s financial affairs.

Amendment history: Amended by No 52 of 1986, item 21, effective 24 June 1986 (s 2) | Amended by No 17 of 1999, Sch 2 item 18 | Sch 2 item 19, effective Sch 2 (items 1–13, 15–40): 19 Apr 1999 (s 2(1)) Sch 2 (item 14): 17 May 1999 (s 2(2)) | Repealed and substituted by No 91 of 2000, Sch 2 item 138, effective Sch 2 (items 13–48, 130–142, 144(1), 145–147): 1 July 2000 (s 3(1))

s 163 — Special returns

Every person, whether a taxpayer or not, if required by the Commissioner, shall, in the approved form and within the time required by the Commissioner, furnish any return required by the Commissioner for the purposes of this Act.

Amendment history: Amended by No 87 of 1978, item 27, effective s 17–71: 22 June 1978 (s 2) | Amended by No 73 of 1989, item 4, effective Sch: 21 June 1989 (s 2) | Amended by No 91 of 2000, Sch 2 item 139, effective Sch 2 (items 13–48, 130–142, 144(1), 145–147): 1 July 2000 (s 3(1)) | Amended by No 41 of 2011, Sch 5 item 320, effective Sch 5 (items 15–17): 28 June 2011 (s 2(1) item 11) Sch 5 (items 57–73, 79, 176–367, 376–382, 412, 413): 27 June 2011 (s 2(1) items 17, 23)

s 166 — Assessment

From the returns, and from any other information in the Commissioner’s possession, or from any one or more of these sources, the Commissioner must make an assessment of: (a) the amount of the taxable income (or that there is no taxable income) of any taxpayer; and (b) the amount of the tax payable thereon (or that no tax is payable); and (c) the total of the taxpayer’s tax offset refunds (or that the taxpayer can get no such refunds).

Amendment history: Amended by No 161 of 2005, Sch 2G item 39 | Sch 2G item 40, effective Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2) | Amended by No 41 of 2011, Sch 5 item 322, effective Sch 5 (items 15–17): 28 June 2011 (s 2(1) item 11) Sch 5 (items 57–73, 79, 176–367, 376–382, 412, 413): 27 June 2011 (s 2(1) items 17, 23) | Repealed and substituted by No 88 of 2013, Sch 5 item 14, effective s 4 and Sch 7 (item 199): 28 June 2013 (s 2(1) items 1, 21) Sch 5 (items 11–20, 24): 1 July 2013 (s 2(1) item 10) Sch 5 (items 28–34, 36–38) and Sch 6 (items 1, 2, 49): 29 June 2013 (s 2(1) items 11, 13) Sch 5 (item 35): 29 June 2013 (s 2(1) item 12)

s 166A — Deemed assessment

(1) Where a taxpayer that is a relevant entity within the meaning of former Division 1B of Part VI furnishes a return in respect of income of a year of income to which that Division applied: (a) the Commissioner is taken to have made, on the day on which the return is furnished, an assessment of the relevant taxable income or net income, as the case may be, and of the tax payable on that taxable income or net income, being those respective amounts as specified in the return; and (b) on and after the day on which the Commissioner is deemed to have made the assessment, the return is deemed to be a notice of the deemed assessment and to be under the hand of the Commissioner; and (c) the notice referred to in paragraph (b) is deemed to have been served on the entity on the day on which the Commissioner is deemed to have made the assessment. (2) Where: (aa) at a particular time, a taxpayer to which former Division 1C of Part VI applied gives a return in respect of income of a year of income to which that Division applied; and (ab) before that time, no return has been given, and no assessment has been made, in relation to the taxpayer in respect of the income of the year of income: the following provisions apply: (a) the Commissioner is deemed to have made an assessment of the taxable income or net income, and the tax payable on that income, equal to those respective amounts specified in the return; (b) the assessment is deemed to have been made on the day on which the return is lodged; (c) on and after the day on which the Commissioner is deemed to have made the assessment, the return is deemed to be a notice of the deemed assessment: (i) under the hand of the Commissioner; and (ii) served on the taxpayer on the day on which the Commissioner is deemed to have made the assessment. (3) If: (a) at a particular time, a full self ‑ assessment taxpayer gives a return in respect of a year of income for which the taxpayer is a full self ‑ assessment taxpayer; and (b) before that time, no return has been given, and no assessment has been made, in relation to the taxpayer in respect of the income of the year of income; the following provisions apply: (c) the Commissioner is taken to have made an assessment of: (i) the taxable income or net income (or an assessment that there is no taxable income or net income); and (ii) the tax payable on that income (or that no tax is payable); and (iii) the total of the taxpayer’s tax offset refunds for the year of income (or that the taxpayer can get no such refunds); in accordance with what the taxpayer specified in the return; (d) the assessment is taken to have been made on the day on which the return is lodged; (e) on and after the day on which the Commissioner is taken to have made the assessment, the return is taken to be a notice of the assessment: (i) under the hand of the Commissioner; and (ii) served on the taxpayer on the day on which the Commissioner is taken to have made the assessment.

Amendment history: Inserted by No 20 of 1990, item 20 | item 31 | item 1B | item 12, effective s 6–8, 9 (amdt to s 78(1)(a)(xcv) Income Tax Assessment Act 1936) and 10–50: 17 Jan 1990 (s 2(1)) s 9 (amdt to s 78(1)(a)(xcvi) Income Tax Assessment Act 1936): 10 Nov 1989 (s 2(2)) | Amended by No 100 of 1991, Sch 2 item 56, effective s 15–28, 30–32, 33(b), (e), (f), 34–76 and 79–84): 27 June 1991 (s 2(1)) s 29 and 77: 24 Apr 1991 (s 2(3), (6)) s 33(a): 16 June 1990 (s 2(4)) s 33(c) and (d): 30 June 1989 (s 2(5)) s 78: 8 Jan 1991 (s 2(7)) | Amended by No 18 of 1993, item 207 | Sch 1 item 71, effective s 8–29, 54–57, 59 and Sch: 9 June 1993 (s 2(1)) s 30–53: 1 Jan 1993 (s 2(2)) | Amended by No 56 of 1994, item 40, effective s 14–23, 39–54, 65–69, 70(3), 71(3), (4), 72–74, 75(2), 76–82, 83(3) and 84–87: 7 Apr 1994 (s 2(1)) s 24–32: 1 July 1993 (s 2(2)) s 33–38: 20 Mar 1994 (s 2(3)) s 55–64: 1 July 1994 (s 2(4)) s 70(1) and 83(1): 30 June 1989 (s 2(5), (8)) s 70(2), 71(2) and 83(2): 8 Jan 1991 (s 2(9)) s 71(1) and 75(1): 17 Jan 1990 (s 2(6), (7)) | Amended by No 120 of 1995, Sch 1 item 72 | Sch 1 item 73, effective Sch 1 (items 1–57, 59–90) and Sch 2 (items 1, 3, 4): 25 Oct 1995 (s 2(1)) Sch 1 (item 58): 23 Nov 1994 (s 2(2)) | Amended by No 174 of 1997, Sch 7 item 9, effective s 4, Sch 1–5, Sch 6 (items 17–23(2), (3)), Sch 7 (items 1–16, 32(1)) and Sch 9 (items 24–30(2), (3)): 21 Nov 1997 (s 2(1)–(3)) | Amended by No 179 of 1999, Sch 18 item 5 | Sch 18 item 6 | Sch 18 item 10, effective Sch 2 (items 20–47), Sch 3 (items 3–6), Sch 5 (item 74), Sch 6 (items 1–13, 24(1)–(4)), Sch 10 (items 22–24), Sch 11 (item 44), Sch 16 (items 3–17, 37) and Sch 17 (items 1, 2): 22 Dec 1999 (s 2(1), (4), (7)(b)–(d)) Sch 5 (items 1–64), Sch 11 (items 14–43, 45–79) and Sch 12 (item 3): 1 July 2000 (s 2(9), (12)) | Amended by No 161 of 2005, Sch 2G item 41 | Sch 2 item 14, effective Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2) | Amended by No 101 of 2006, Sch 2 item 407 | Sch 2 item 408 | Sch 2 item 409 | Sch 2 item 410, effective Sch 1 (items 1, 5–199), Sch 2 (items 118–565, 1017, 1023–1037) and Sch 6 (items 1–4, 6–15): 14 Sept 2006 (s 2(1) items 2, 4) Sch 3 (items 1–10) and Sch 4 (items 1–11): 1 Jan 2008 (s 2(1) item 3) | Amended by No 88 of 2013, Sch 5 item 15, effective s 4 and Sch 7 (item 199): 28 June 2013 (s 2(1) items 1, 21) Sch 5 (items 11–20, 24): 1 July 2013 (s 2(1) item 10) Sch 5 (items 28–34, 36–38) and Sch 6 (items 1, 2, 49): 29 June 2013 (s 2(1) items 11, 13) Sch 5 (item 35): 29 June 2013 (s 2(1) item 12)

s 167 — Default assessment

If: (a) any person makes default in furnishing a return; or (b) the Commissioner is not satisfied with the return furnished by any person; or (c) the Commissioner has reason to believe that any person who has not furnished a return has derived taxable income; the Commissioner may make an assessment of the amount upon which in his or her judgment income tax ought to be levied, and that amount shall be the taxable income of that person for the purpose of section 166.

Amendment history: Amended by No 108 of 1981, item 124, effective s 4–25: 24 June 1981 (s 2) | Amended by No 41 of 2011, Sch 5 item 323, effective Sch 5 (items 15–17): 28 June 2011 (s 2(1) item 11) Sch 5 (items 57–73, 79, 176–367, 376–382, 412, 413): 27 June 2011 (s 2(1) items 17, 23)

s 168 — Special assessment

(1) The Commissioner may at any time during any year, or after its expiration, make an assessment of: (a) the taxable income derived (or that there is no taxable income) in that year or any part of it by any taxpayer; and (b) the tax payable thereon (or that no tax is payable); and (c) the total of the taxpayer’s tax offset refunds for that year or that part of it (or that the taxpayer can get no such refunds). (2) Where the income, in respect of which such an assessment is made, is derived in a period less than a year, the assessment shall be made as if the beginning and end of that period were the beginning and end respectively of the year of income.

Amendment history: Amended by No 161 of 2005, Sch 2G item 42 | Sch 2G item 43, effective Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2) | Amended by No 88 of 2013, Sch 5 item 16, effective s 4 and Sch 7 (item 199): 28 June 2013 (s 2(1) items 1, 21) Sch 5 (items 11–20, 24): 1 July 2013 (s 2(1) item 10) Sch 5 (items 28–34, 36–38) and Sch 6 (items 1, 2, 49): 29 June 2013 (s 2(1) items 11, 13) Sch 5 (item 35): 29 June 2013 (s 2(1) item 12)

s 169 — Assessments on all persons liable to tax

Where under this Act any person is liable to pay tax (including a nil liability), the Commissioner may make an assessment of the amount of such tax (or an assessment that no tax is payable).

Amendment history: Amended by No 161 of 2005, Sch 2G item 44 | Sch 2G item 45, effective Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2)

s 169AA — Consolidated assessments

(1) This section applies if 2 or more persons (the recipients ) are in receipt of income, or of profits or gains of a capital nature, for or on behalf of: (a) a non ‑ resident; or (b) a person absent from Australia. (2) The Commissioner may, if it appears to him or her to be expedient to do so: (a) consolidate all or any of the assessments of the income, profits or gains; and (b) declare one of the recipients to be the agent of the non ‑ resident or absent person in respect of the consolidated assessment; and (c) require the agent to pay income tax on the amount assessed. (3) If the Commissioner does so, the agent is liable to pay the tax.

Amendment history: Inserted by No 79 of 2010, effective Sch 1 (items 1, 2, 17–26, 53, 57, 66), Sch 3 (item 1), Sch 4 (items 1, 9–37, 51) and Sch 5 (items 1, 3–5, 13): 1 July 2010 (s 2(1) items 2, 4) Sch 2 (items 1, 10–15): 1 July 2010 (s 2(1) item 3)

s 169A — Reliance by Commissioner on returns and statements

(1) Where a return of income of a taxpayer of a year of income is furnished to the Commissioner (whether or not by the taxpayer), the Commissioner may, for the purposes of making an assessment in relation to the taxpayer under this Act, accept, either in whole or in part, a statement in the return of the assessable income derived by the taxpayer and of any allowable deductions or rebates to which it is claimed that the taxpayer is entitled and any other statement in the return or otherwise made by or on behalf of the taxpayer. (2) Despite subsection (1), if, in a document given with a return of income of a taxpayer of a year of income and signed by or on behalf of the taxpayer, a question is raised: (a) that is relevant to the liability of the taxpayer in respect of the year of income; and (b) on which the taxpayer is not entitled to apply for a private ruling under Division 359 in Schedule 1 to the Taxation Administration Act 1953 ; the Commissioner must give attention to that question. (3) In determining whether an assessment is correct, any determination, opinion or judgment of the Commissioner made, held or formed in connection with the consideration of an objection against the assessment shall be deemed to have been made, held or formed when the assessment was made.

Amendment history: Inserted by No 46 of 1986, effective s 4–26: 24 June 1986 (s 2(1)) | Amended by No 101 of 1992, effective s 16–32, 34 and Sch 1–4: 30 June 1992 (s 2) | Amended by No 161 of 2005, Sch 2 item 4, effective Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2)

s 170 — Amendment of assessments

(1) The Commissioner may amend an assessment as follows: Amendment of assessments Time of amendment Qualification 1 The Commissioner may amend an assessment of an individual for a year of income within 2 years after the day on which the Commissioner gives notice of the assessment to the individual. This item does not apply: (a) if the individual carries on a business at any time in that year unless the individual is a small business entity or medium business entity for that year; or (b) if the individual is a partner in a partnership that carries on a business at any time in that year unless the partnership is a small business entity or medium business entity for that year; or (c) to an individual in the capacity of a trustee of a trust estate at any time in that year (see item 3 for this case); or (d) if the individual is a beneficiary of a trust estate at any time in that year unless the trust is a small business entity or medium business entity for that year or the trustee of the trust (in that capacity) is a full self ‑ assessment taxpayer for that year; or (e) if it is reasonable to conclude that any person entered into or carried out a scheme (either alone or with others) for the sole or dominant purpose of the individual obtaining a scheme benefit in relation to income tax from the scheme for that year; or (f) in any other circumstance prescribed by the regulations. This item is subject to items 5 and 6. 2 The Commissioner may amend an assessment of a company that is a small business entity or medium business entity for the year of income to which the assessment relates within 2 years after the day on which the Commissioner gives notice of the assessment to the company. This item does not apply: (a) if the company is a partner in a partnership that carries on a business at any time in that year unless the partnership is a small business entity or medium business entity for that year; or (b) to a company in the capacity of a trustee of a trust estate at any time in that year (see item 3 for this case); or (c) if the company is a beneficiary of a trust estate at any time in that year unless the trust is a small business entity or medium business entity for that year or the trustee of the trust (in that capacity) is a full self ‑ assessment taxpayer for that year; or (d) if it is reasonable to conclude that any person entered into or carried out a scheme (either alone or with others) for the sole or dominant purpose of the company obtaining a scheme benefit in relation to income tax from the scheme for that year; or (e) in any other circumstance prescribed by the regulations. This item is subject to items 5 and 6. 3 The Commissioner may amend an assessment of a person (in the capacity of a trustee of a trust estate) for a year of income if the trust is a small business entity or medium business entity for that year. The Commissioner may amend the assessment within 2 years after the day on which he or she gives notice of the assessment to the person. This item does not apply: (a) if the person (in that capacity) is a partner in a partnership that carries on a business at any time in that year unless the partnership is a small business entity or medium business entity for that year; or (b) if the person (in that capacity) is a beneficiary of another trust estate at any time in that year unless the other trust is a small business entity or medium business entity for that year or the trustee of the other trust (in that capacity) is a full self ‑ assessment taxpayer for that year; or (c) if it is reasonable to conclude that any person entered into or carried out a scheme (either alone or with others) for the sole or dominant purpose of the person (in that capacity) obtaining a scheme benefit in relation to income tax from the scheme for that year; or (d) in any other circumstance prescribed by the regulations. This item is subject to items 5 and 6. 3A The Commissioner may amend an assessment of an individual, a company or a person (in the capacity of a trustee of a trust estate) for a year of income within 4 years after the day on which the Commissioner gives notice of the assessment to the taxpayer if: (a) the individual, company or trust is a small business entity or a medium business entity for the year; and (b) the individual, company or trustee applies for an amendment in the approved form before the end of that 4 year period; and (c) the Commissioner could amend the assessment within 2 years under item 1, 2 or 3; and (d) the period within which the Commissioner could amend the assessment under item 1, 2 or 3 has ended. The Commissioner may amend the assessment to give effect to the decision on the application. This item is subject to items 5 and 6. 4 If item 1, 2 or 3 does not apply, the Commissioner may amend an assessment within 4 years after the day on which he or she gives notice of the assessment to the taxpayer. This item is subject to items 5 and 6. 5 The Commissioner may amend an assessment at any time if he or she is of the opinion there has been fraud or evasion. None. 6 The Commissioner may amend an assessment at any time: (a) to give effect to a decision on a review or appeal; or (b) as a result of an objection made by the taxpayer or pending a review or appeal. None. Note 1: This section applies to assessments where no tax is payable: see the definition of assessment in subsection 6(1). Note 2: This section also applies to amended assessments: see section 173. However, there are limits on how amended assessments can be amended: see subsections (2) and (3) of this section. Note 3: The amendment period mentioned in item 1, 2, 3 or 4 may be extended: see subsections (5) to (7). Limit on amending amended assessments under subsection (1) (2) The Commissioner cannot amend an amended assessment under item 1, 2, 3 or 4 of the table in subsection (1) if the limited amendment period for the original assessment concerned has ended. Note: The Commissioner can amend amended assessments at any time under item 5 or 6 of the table in subsection (1). (2A) The Commissioner cannot amend an amended assessment under item 3A of the table in subsection (1) if the period of 4 years after the day on which the Commissioner gives notice of the original assessment concerned has ended. Refreshed amendment period for amending amended assessments (3) If the Commissioner amends an assessment (the earlier assessment ) as set out in column 2 of the following table, he or she may, under this subsection, amend the assessment (the later assessment ) that results from that amendment in the way set out in column 3 within: (a) if item 1, 2, 3 or 3A of the table in subsection (1) applies to the original assessment concerned (which may or may not be the earlier assessment)—2 years after the day on which he or she gives notice of the later assessment to the taxpayer; or (b) otherwise—4 years after that day. Amendment of later assessment Column 1 Item Column 2 In this case: Column 3 the position is: 1 The Commissioner amends the earlier assessment about a particular in a way that reduces a taxpayer’s liability and the Commissioner accepts a statement made by the taxpayer in making the amendment The Commissioner may amend the later assessment about that particular in a way that increases the taxpayer’s liability. 2 The Commissioner amends the earlier assessment about a particular in a way that: (a) increases a taxpayer’s liability; or (b) reduces a taxpayer’s liability (other than in a case covered by item 1) The Commissioner may amend the later assessment about that particular in a way that reduces the taxpayer’s liability. Note 1: The earlier assessment may be the original assessment or an amended assessment. Note 2: The Commissioner can amend the later assessment at any time under item 5 or 6 of the table in subsection (1). Note 3: The amendment period mentioned in paragraph (3)(a) or (b) may be extended: see subsections (5) to (7). (4) The Commissioner cannot amend an assessment under item 2 of the table in subsection (3) about a particular if he or she has previously amended an assessment under item 1 of that table about that particular. Extensions—applications by taxpayer (5) The Commissioner may amend an assessment even though the limited amendment period has ended if, before the end of that period, the taxpayer applies for an amendment in the approved form. The Commissioner may amend the assessment to give effect to the decision on the application. Extensions—giving effect to private rulings (6) The Commissioner may amend an assessment even though the limited amendment period has ended if: (a) the taxpayer applies for a private ruling under Division 359 in Schedule 1 to the Taxation Administration Act 1953 before the end of that period; and (b) the Commissioner makes a private ruling under that Division because of the application. The Commissioner may amend the assessment to give effect to the ruling. Extensions—Federal Court orders or taxpayer consent (7) If: (a) the Commissioner has started to examine the affairs of a taxpayer in relation to an assessment; and (b) the Commissioner has not completed the examination before the end of the limited amendment period or that period as extended; the limited amendment period may be extended as follows: Extensions of limited amendment period In this case: the position is: 1 The Commissioner, before the end of the limited amendment period or that period as extended, applies to the Federal Court of Australia for an order extending the limited amendment period The Court may order an extension of the limited amendment period for a specified period if it is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the limited amendment period, or that period as extended, because of: (a) any action taken by the taxpayer; or (b) any failure of the taxpayer to take action that would have been reasonable for the taxpayer to take. 2 The Commissioner, before the end of the limited amendment period or that period as extended, requests the taxpayer to consent to extending the limited amendment period The taxpayer may, by notice in writing, consent to extending the limited amendment period for a specified period. (8) The limited amendment period for an assessment may be extended more than once under subsection (7). Other amendment periods (9) Notwithstanding anything contained in this section, when the assessment of the taxable income of any year includes an estimated amount of income, or of profits or gains of a capital nature, derived by the taxpayer in that year from an operation or series of operations the profit or loss on which was not ascertainable at the end of that year owing to the fact that the operation or series of operations extended over more than one or parts of more than one year, the Commissioner may at any time within 4 years after ascertaining the total profit or loss actually derived or arising from the operation or series of operations, amend the assessment so as to ensure its completeness and accuracy on the basis of the profit or loss so ascertained. (9D) This section does not prevent the amendment of an assessment at any time if the amendment is made, in relation to a contract that after the making of the assessment is found to be void ab initio, to ensure that Part 3 ‑ 1 or 3 ‑ 3 of the Income Tax Assessment Act 1997 (about CGT) is taken always to have applied to the contract as if the contract had never been made. (10) Nothing in this section prevents the amendment, at any time, of an assessment for the purpose of giving effect to any of the provisions of this Act set out in this table. Item Provision Brief description 1 Section 23AB Income of certain persons serving with an armed force under the control of the United Nations 3 Section 26AG Certain film proceeds included in assessable income 4 Subsection 47(2B) Distributions by liquidator 5 Section 51AD Deductions not allowable in respect of property used under certain leveraged arrangements 6 Section 51AH Deductions not allowable where expenses incurred by employee are reimbursed 10 Section 78A Certain gifts not to be allowable deductions 14 Section 82KL Tax benefit not allowable in respect of certain recouped expenditure 16 Subsection 82SA(2) Interest on certain convertible notes to be an allowable deduction—where loan made on or after 1 January 1976 17 Section 100A Present entitlement arising from reimbursement agreement 18 Subdivision C of Division 6D of Part III Trustee beneficiary non ‑ disclosure tax on share of net income 20 Section 105AB Additional period for distribution by liquidator 21 Section 121AT Other tax consequences of demutualisation 22 Division 9C of Part III Assessable income diverted under certain tax avoidance schemes 23 Former Division 10BA of Part III Australian films 25 Division 16D of Part III Certain arrangements relating to the use of property 26 Subsection 159GZZZH(2) Post ‑ cancellation disposals of eligible interests etc. 27 Section 160ABB Rebate in respect of certain payments by the Commonwealth Savings Bank of Australia 27A Subsection 170B(7) Removal of protection relating to discontinued announcement because of later inconsistent return 28 Section 271 ‑ 105 in Schedule 2F Amounts subject to family trust distribution tax not assessable (10AA) Nothing in this section prevents the amendment, at any time, of an assessment for the purpose of giving effect to any of the provisions of the Income Tax Assessment Act 1997 set out in this table. Amendment of assessments Item Provision Brief description 5 Subsection 26 ‑ 25(3) Deduction for interest or royalty if withholding tax paid 15 Subsection 26 ‑ 25A(2) Deduction for salary, wages etc. if labour mobility program withholding tax paid 17 The cell, of the table in subsection 43 ‑ 145(1), dealing with use in the 4% build to rent manner Section 43 ‑ 237 Deductions for capital works relating to build to rent developments 22 Section 59 ‑ 30 Repayment of amounts 23 Subdivision 61 ‑ G Private health insurance offset complementary to Part 2 ‑ 2 of the Private Health Insurance Act 2007 26 Section 83A ‑ 310 Forfeiture of ESS interests acquired under an employee share scheme 28 Section 83A ‑ 340 Rights that become rights to acquire shares 30 Subsection 104 ‑ 10(3) or (6) Subsection 104 ‑ 25(2) Subsection 104 ‑ 45(2) Subsection 104 ‑ 90(2) Subsection 104 ‑ 110(2) Subsection 104 ‑ 205(2) Subsection 104 ‑ 225(5) Subsection 104 ‑ 230(5) The time of a CGT event is decided by there being a contract entered into 40 Paragraph 104 ‑ 15(4)(a) CGT event B1: agreement ends without title passing 50 Subsection 104 ‑ 40(5) Exception to CGT event D2 where option is exercised 60 Section 108 ‑ 15 Disposal of collectable that is part of a set 70 Section 108 ‑ 25 Disposal of personal use asset that is part of a set 80 Section 116 ‑ 45 Modification to capital proceeds for non ‑ receipt 90 Section 116 ‑ 50 Modification to capital proceeds for amounts you repay 100 Subsection 122 ‑ 25(4) Right or option etc. exercised after roll ‑ over to acquire trading stock 110 Subsection 122 ‑ 135(4) Right or option etc. exercised after roll ‑ over to acquire trading stock 120 Subdivision 124 ‑ B Roll ‑ over for assets compulsorily acquired, lost or destroyed 130 Subsection 126 ‑ 5(3) CGT event B1: agreement ends without title passing 140 Subsection 126 ‑ 45(3) CGT event B1: agreement ends without title passing 150 Subsection 126 ‑ 50(3) Right or option etc. exercised after roll ‑ over to acquire trading stock 160 Section 126 ‑ 70 Capital loss disregarded despite choice for no roll ‑ over 165 Subsection 138 ‑ 15(5) CGT event B1: agreement ends without title passing 168 Subsection 160 ‑ 16(1) Change of a loss carry back choice 170 Subsection 165 ‑ 115ZA(2) Reduction in respect of reduced cost base etc. of debt disregarded if commercial debt forgiveness provisions apply 173 Division 250 Asset is put to a tax preferred use by a tax preferred end user 174 Section 295 ‑ 25 Commissioner makes an assessment as if an entity were a complying superannuation entity or a pooled superannuation trust for the income year and: (a) the entity does not become one; or (b) the Australian Prudential Regulation Authority (APRA) does not receive certain documents about the entity within a specified period 175 Section 295 ‑ 30 Notice under section 342 of the Superannuation Industry (Supervision) Act 1993 or under regulations made for the purposes of that section is revoked, or the decision to give the notice is set aside 176 Subsection 295 ‑ 195(3) An amount is excluded from the assessable income of a complying superannuation fund or an RSA provider because of the exercise of an option by the trustee or provider 177 Section 295 ‑ 270 Commissioner makes an assessment on the basis of an amount of pre ‑ 1 July 88 funding credits being anticipated for an income year and: (a) it becomes clear that those credits will not be available; or (b) APRA does not receive certain documents within a specified period 178 295 ‑ 490(2) Deduction is denied because financial assistance funding levy is remitted or there is a refund of an overpayment of the levy 185 Former Subdivision 375 ‑ H Deductions for shares in a film licensed investment company 190 Subdivision 385 ‑ E Primary producer elects to spread or defer tax on profit from forced disposal or death of live stock 200 Section 385 ‑ 160 Disentitling event happens in relation to your primary production business 210 Division 393 Farm management deposits (10AB) Nothing in this section prevents the amendment, at any time, of an assessment for the purpose of reflecting information contained in an AMMA statement (within the meaning of the Income Tax Assessment Act 1997 ) if: (a) the statement is given by an AMIT for a year of income to an entity that is or was a member of the AMIT in respect of the year of income; and (b) the statement is so given later than 3 months after the end of the year of income. (11) Nothing in this section prevents the amendment, at any time, of an assessment to decrease the liability of a taxpayer for the purpose of giving effect to section 24 of the International Tax Agreements Act 1953. (12) Nothing in this section prevents the amendment, at any time, of an assessment to increase the liability of a taxpayer if: (a) the Commissioner amends a DPT assessment to decrease the liability of the taxpayer to diverted profits tax; and (b) that increase is attributable to that decrease. Definitions (14) In this section, unless the contrary intention appears: DPT assessment has the meaning given by the Income Tax Assessment Act 1997 . limited amendment period , for an assessment, means the period within which the Commissioner may amend the assessment: (a) under item 1, 2, 3 or 4 of the table in subsection (1); or (b) under paragraph (3)(a) or (b). medium business entity , for a year of income, means an entity (within the meaning of the Income Tax Assessment Act 1997 ) who: (a) is not a small business entity for the year of income; and (b) would be a small business entity for the year of income if: (i) each reference in Subdivision 328 ‑ C (about what is a small business entity) of that Act to $10 million were instead a reference to $50 million; and (ii) the reference in paragraph 328 ‑ 110(5)(b) of that Act to a small business entity were instead a reference to an entity (within the meaning of that Act) covered by this definition. scheme has the meaning given by subsection 995 ‑ 1(1) of the Income Tax Assessment Act 1997 . scheme benefit has the meaning given by section 284 ‑ 150 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Amended by No 88 of 1936, effective 7 Dec 1936 | Amended by No 22 of 1942, effective 7 June 1942 (s 2) | Amended by No 50 of 1942, effective s 26: 28 July 1942 (s 26(2)) Remainder: 6 Oct 1942 (s 2) | Amended by No 28 of 1944, effective 6 Oct 1944 (s 2) | Amended by No 11 of 1947, effective 3 June 1947 (s 2) | Amended by No 45 of 1953, effective 26 Oct 1953 (s 2) | Amended by No 101 of 1956, effective s 3–13(b) and 14–26: 15 Nov 1956 (s 2(1)) s 13(c): 1 July 1956 (s 2(2)) | Amended by No 65 of 1957, effective s 3–23: 28 Nov 1957 (s 2) | Amended by No 55 of 1958, effective 1 Oct 1958 (s 2) | Amended by No 70 of 1959, effective s. 1(4): 14 Jan 1960 (s 1(5)) Remainder: 20 Nov 1959 (s 2) | Amended by No 85 of 1959, effective s 3–36: 2 Dec 1959 (s 2(1)) | Amended by No 27 of 1961, effective s 3–5: 16 June 1961 | Amended by No 94 of 1961, effective s 3–23: 30 Oct 1961 (s 2) | Amended by No 39 of 1962, effective 28 May 1962 (s 2) | Amended by No 69 of 1963, effective s 3, 4, 6(b), (c) and 7–56: 31 Oct 1963 (s 2(1)) s 5: 9 May 1963 (s 2(2)) s 6(a): 12 Dec 1957 (s 2(3)) | Amended by No 46 of 1964, effective 28 May 1964 (s 2) | Amended by No 68 of 1964, effective s 3–10: 20 Oct 1964 (s 2(1)) | Amended by No 110 of 1964, effective s 3–46: 23 Nov 1964 (s 2(1)) | Amended by No 38 of 1967, item 10, effective s 3–16: 25 May 1967 (s 2) | Amended by No 85 of 1967, item 20, effective s 2(2), (3) and 3–37: 8 Nov 1967 (s 2(1)) | Amended by No 60 of 1968, item 20, effective s 2(2), (3) and 3–23: 25 June 1968 (s 2(1)) | Amended by No 87 of 1968, item 10, effective s 3–11: 21 Nov 1968 (s 2) | Amended by No 93 of 1969, item 18, effective s 3–19: 27 Sept 1969 (s 2) | Amended by No 87 of 1970, item 7, effective 27 Oct 1970 (s 2) | Amended by No 51 of 1973, item 21 | item 3, effective s 25(1): 25 June 1968 (s 25(2)) Remainder: 14 June 1973 (s 2) | Amended by No 52 of 1973, item 13, effective s 3–14: 14 June 1973 (s 2) | Amended by No 216 of 1973, Sch 1 item 11, effective Sch 1: 31 Dec 1973 (s 2) | Amended by No 20 of 1974, Sch 1 item 11 | Sch 1 item 18, effective Sch 1: 31 Dec 1973 (s 2) | Amended by No 126 of 1974, item 39, effective s 3–46: 6 Dec 1974 (s 2) | Amended by No 117 of 1975, item 7 | item 24 | item 33, effective s 3–11(1)(b) and (d)–34: 11 Nov 1975 (s 2(1)) s 11(1)(c): 9 Feb 1976 (s 2(2)) s 30: never commenced (s 2(3)) | Amended by No 50 of 1976, item 17, effective s 3–19 and Sch: 4 June 1976 (s 2) | Amended by No 205 of 1976, item 4 | item 35, effective s 3–36: 20 Dec 1976 (s 2(1)) | Amended by No 57 of 1977, item 12, effective s 3–15 and 18: 16 June 1977 (s 2(1)) s 16: 1 July 1976 (s 2(2)) | Amended by No 57 of 1978, item 11 | item 21, effective 22 June 1978 (s 2) | Amended by No 172 of 1978, item 29, effective 28 Nov 1978 (s 2) | Amended by No 12 of 1979, item 20, effective 13 Mar 1979 (s 2) | Amended by No 146 of 1979, item 10 | item 11, effective 28 Nov 1979 (s 2) | Amended by No 19 of 1980, item 3 | item 4 | item 16 | item 18, effective 30 Apr 1980 (s 2) | Amended by No 57 of 1980, item 13 | item 26, effective 23 May 1980 (s 2) | Amended by No 58 of 1980, item 6, effective 23 May 1980 (s 2) | Amended by No 124 of 1980, item 14, effective 17 Sept 1980 (s 2) | Amended by No 133 of 1980, item 3 | item 6 | item 9, effective 19 Sept 1980 (s 2) | Amended by No 159 of 1980, item 5 | item 15, effective 10 Dec 1980 (s 2) | Amended by No 108 of 1981, item 10 | item 23 | item 27 | item 124, effective s 4–25: 24 June 1981 (s 2) | Amended by No 111 of 1981, effective 24 June 1981 (s 2) | Amended by No 29 of 1982, item 21 | item 24, effective s 3–24: 17 May 1982 (s 2(1)) | Amended by No 38 of 1982, item 5, effective 2 June 1982 (s 2) | Amended by No 106 of 1982, item 5 | item 20 | item 24, effective 30 Oct 1982 (s 2) | Amended by No 123 of 1982, item 8, effective 13 Dec 1982 (s 2) | Amended by No 49 of 1983, item 8, effective 21 Sept 1983 (s 2) | Amended by No 14 of 1984, item 27 | item 30, effective 12 Apr 1984 (s 2) | Amended by No 47 of 1984, item 15 | item 53 | item 62, effective 25 June 1984 (s 2) | Amended by No 76 of 1984, Sch 2 item 30, effective s 28–30: 29 June 1984 (s 2 and gaz 1984, No S241) | Amended by No 123 of 1984, Sch 16 item 100, effective s 91–166 and 385: 14 Dec 1984 (s 2(3)) | Amended by No 123 of 1985, item 32, effective s 10–36: 28 Oct 1985 (s 2) | Amended by No 173 of 1985, item 19, effective s 4, 5(3), 17 and 20–22: 22 May 1986 (s 2(4)) s 5(1): 6 June 1985 (s 2(2)) s 5(2): 1 Nov 1985 (s 2(3)) s 6–12, 14–16, 18, 19, 23, 24: 16 Dec 1985 (s 2(1)) s 13: never commenced (s 2(4)) | Amended by No 41 of 1986, item 4, effective s 4 and Sch: 24 June 1986 (s 2(1)) | Amended by No 46 of 1986, item 51 | item 20, effective s 4–26: 24 June 1986 (s 2(1)) | Amended by No 52 of 1986, item 9 | item 19 | item 22, effective 24 June 1986 (s 2) | Amended by No 90 of 1986, item 8 | item 9, effective 25 June 1986 (s 2) | Amended by No 112 of 1986, Sch 1 item 29 | Sch 1 item 47, effective s 15–34, 46 and 47: 4 Nov 1986 (s 2) | Amended by No 61 of 1987, item 13, effective s 6–33: 5 June 1987 (s 2) | Amended by No 141 of 1987, effective s 5(1): 18 Dec 1987 (s 2(1)) Sch 1: 25 June 1986 (s 2(19)) | Amended by No 59 of 1988, item 6, effective s 4–7 and 18: 1 July 1988 (s 2) | Amended by No 153 of 1988, item 11 | item 32 | item 1988, effective s 9–42 and 44: 26 Dec 1988 (s 2(1)) s 43: 1 Jan 1989 (s 2(2)) | Amended by No 97 of 1989, Sch 2 item 8 | Sch 2 item 293 | Sch 1 item 1989, effective s 4–9, 11–15 and Sch 1: 30 June 1989 (s 2) | Amended by No 107 of 1989, Sch 1 item 73B, effective s 9–23, 32 and Sch 1: 30 June 1989 (s 2(1)) | Amended by No 167 of 1989, item 25, effective s 4–30 and 32: 19 Dec 1989 (s 2(1)) s 31: 19 Jan 1989 (s 2(2)) | Amended by No 20 of 1990, item 31 | item 42, effective s 6–8, 9 (amdt to s 78(1)(a)(xcv) Income Tax Assessment Act 1936) and 10–50: 17 Jan 1990 (s 2(1)) s 9 (amdt to s 78(1)(a)(xcvi) Income Tax Assessment Act 1936): 10 Nov 1989 (s 2(2)) | Amended by No 57 of 1990, Sch 2 item 1985 | Sch 2 item 58 | Sch 2 item 80, effective s 6–58, 61–65, Sch 1 and 2: 16 June 1990 (s 2) | Amended by No 101 of 1992, effective s 16–32, 34 and Sch 1–4: 30 June 1992 (s 2) | Amended by No 224 of 1992, item 25 | item 31 | item 3 | item 10, effective s 4–13, 14(1), 15(1), 16(1), 17(1) and 18–87: 24 Dec 1992 (s 2(1)) s 14(2), 15(2), 16(2) and 17(2): 1 July 1993 (s 2(1)) | Amended by No 18 of 1993, item 29, effective s 8–29, 54–57, 59 and Sch: 9 June 1993 (s 2(1)) s 30–53: 1 Jan 1993 (s 2(2)) | Amended by No 82 of 1994, item 48 | item 51 | item 52 | item 53, effective s 8–43, 47–71, 80–83, 93–112, 114–119, 122, 128–134: 23 June 1994 (s 2(1)) s 7, 120 and 121: 22 Oct 1986 (s 2(2)) s 44–46: 9 June 1993 (s 2(3)) s 72–79: 1 Jan 1993 (s 2(4)) s 84–92: 30 June 1992 (s 2(5)) s 113: 21Dec 1992 (s 2(6)) s 123–127): 24 Dec 1992 (s 2(7)) | Amended by No 138 of 1994, item 77, effective s 4, 5, 8–10, 14–16, 21–24, 27–33, 44–92, 99–116 and Sch: 28 Nov 1994 (s 2(1)) s 11–13, 17–20, 25, 26 and 34–43: 1 Jan 1993 (s 2(2)) s 93–98: 28 Nov 1994 (s 2(3)) | Amended by No 181 of 1994, Sch 1 item 12 | Sch 3 item 100 | Sch 4 item 23, effective Sch 1 (items 1–21, 86–91), Sch 2 (items 5–23, 23 (2nd occurring)), Sch 3 (items 6–100), Sch 4 (items 9–23) and Sch 5 (items 25–30, 46(10)): 19 Dec 1994 (s 2(1)) Sch 1 (items 22–85): 13 Oct 1994 (s 2(2)) | Amended by No 22 of 1995, item 21 | item 22, effective Sch (items 16–35): 29 Mar 1995 (s 2) | Amended by No 30 of 1995, Sch 2B item 9, effective Sch 1 and 2: 7 Apr 1995 (s 2) | Amended by No 31 of 1995, Sch 1 item 8, effective Sch 1: 7 Apr 1995 (s 2) | Amended by No 170 of 1995, Sch 4 item 2, effective Sch 1 and Sch 2 (items 1–53), Sch 3 (items 15, 16): 16 Dec 1995 (s 2(1)) | Amended by No 171 of 1995, Sch 3 item 2 | Sch 4 item 30, effective s 4, Sch 1, Sch 2 (items 1, 2, 86), Sch 3 and Sch 4 (items 1–4): 16 Dec 1995 (s 2(1), (3)) Sch 2 (items 3–85, 87–160): 1 July 1995 (s 2(2)) Sch 4 (items 5–14): 1 Mar 1996 (s 2(4)) | Amended by No 78 of 1996, Sch 4 item 11 | Sch 4 item 12, effective Sch 1, 2 and Sch 4 (items 1–57): 19 Dec 1996 (s 2(1), (2)) Sch 4 (items 56, 57): 5 pm (A.C.T.) 23 July 1996 (s 2(4)) | Amended by No 39 of 1997, Sch 4 item 247 | Sch 4 item 248 | Sch 1 item 170, effective Sch 1: 1 July 1997 (s 2) | Amended by No 121 of 1997, Sch 1 item 387 | Sch 5 item 87 | Sch 5 item 88 | Sch 6 item 120 | Sch 7 item 7 | Sch 12 item 9, effective s 4: 8 July 1997 (s 2(1)) Sch 2 (items 18–37), Sch 3 (items 31–61), Sch 4 (items 63–138), Sch 5 (items 43–93), Sch 6 (items 68–132), Sch 7 (items 5–7), Sch 8 (items 32–51), Sch 9 (items 16–40), Sch 10 (items 12–15), Sch 11 (items 37–57) and Sch 12 (items 15–23): 1 July 1997 (s 2(3), (5)) | Amended by No 147 of 1997, Sch 14 item 35 | Sch 14 item 40 | Sch 14 item 48 | Sch 14 item 248, effective s 4, Sch 1 (items 1–43, 45), Sch 2 (item 1), Sch 3–5, Sch 6 (items 1–3, 5–9), Sch 8, Sch 10, Sch 13, Sch 14 (items 1–39, 41, 42), Sch 15 (items 1–6) and Sch 17: 14 Oct 1997 (s 2(1), (4)) Sch 6 (item 4) and Sch 14 (item 40): 1 July 1997 (s 2(2), (6A)) Sch 11 (items 1–12): 19 Dec 1996 (s 2(5)) | Amended by No 147 of 1997, Sch 14 item 35 | Sch 14 item 40 | Sch 14 item 48 | Sch 14 item 248, effective s 4, Sch 1 (items 1–43, 45), Sch 2 (item 1), Sch 3–5, Sch 6 (items 1–3, 5–9), Sch 8, Sch 10, Sch 13, Sch 14 (items 1–39, 41, 42), Sch 15 (items 1–6) and Sch 17: 14 Oct 1997 (s 2(1), (4)) Sch 6 (item 4) and Sch 14 (item 40): 1 July 1997 (s 2(2), (6A)) Sch 11 (items 1–12): 19 Dec 1996 (s 2(5)) | Amended by No 174 of 1997, Sch 7 item 10, effective s 4, Sch 1–5, Sch 6 (items 17–23(2), (3)), Sch 7 (items 1–16, 32(1)) and Sch 9 (items 24–30(2), (3)): 21 Nov 1997 (s 2(1)–(3)) | Amended by No 17 of 1998, Sch 2F item 10 | Sch 2F item 11, effective s 4 and Sch 1: 16 Apr 1998 (s 2) | Amended by No 41 of 1998, Sch 1 item 15 | Sch 6 item 16, effective s 4, Sch 1 (items 4–16, 18–26), Sch 2 (items 1–4), Sch 3 (items 1–3, 7(1)), Sch 4 (items 4, 5), Sch 5 (items 16, 18) and Sch 6 (items 1, 2, 4, 5, 7–13, 15–18, 27): 4 June 1998 (s 2(1)) Sch 1 (item 17): 9 Apr 1999 (s 2(2)) Sch 5 (items 17, 19): 12 Dec 1995 (s 2(5)) Sch 6 (item 3): 16 Dec 1985 (s 2(6)) Sch 6 (item 6): 1 Jan 1993 (s 2(7)) Sch 6 (item 14): never commenced (s 2(9)) Sch 6 (item 16): 1 July 1998 (s 2(10)) | Amended by No 46 of 1998, Sch 10 item 4 | Sch 10 item 170 | Sch 10 item 130 | Sch 10 item 401 | Sch 10 item 402, effective s 4, Sch 2 (items 49–522), Sch 3 (items 13–20), Sch 4 (items 12–27), Sch 5 (items 6–10), Sch 6 (items 8–30), Sch 7 (items 12–19), Sch 8 (items 2–9) and Sch 9 (items 7, 8): 22 June 1998 (s 2(1)–(4)) | Amended by No 85 of 1998, Sch 2G item 13, effective Sch 1: 2 Jan 1999 (s 2(2)) | Amended by No 70 of 1999, Sch 2 item 11, effective Sch 1 and Sch 2 (items 1–12): 8 July 1999 (s 2) | Amended by No 94 of 1999, Sch 5 item 33, effective s 4, Sch 3 (items 1–3), Sch 4, Sch 5 (items 23–35) and Sch 6 (items 67–73): 16 July 1999 (s 2(1)) | Amended by No 179 of 1999, Sch 18 item 4 | Sch 18 item 6 | Sch 18 item 7 | Sch 18 item 8 | Sch 18 item 9 | Sch 18 item 10 | Sch 18 item 11 | Sch 18 item 36, effective Sch 2 (items 20–47), Sch 3 (items 3–6), Sch 5 (item 74), Sch 6 (items 1–13, 24(1)–(4)), Sch 10 (items 22–24), Sch 11 (item 44), Sch 16 (items 3–17, 37) and Sch 17 (items 1, 2): 22 Dec 1999 (s 2(1), (4), (7)(b)–(d)) Sch 5 (items 1–64), Sch 11 (items 14–43, 45–79) and Sch 12 (item 3): 1 July 2000 (s 2(9), (12)) | Amended by No 89 of 2000, Sch 1 item 8 | Sch 1 item 16 | Sch 1 item 165 | Sch 1 item 37 | Sch 1 item 38 | Sch 1 item 39 | Sch 1 item 40 | Sch 1 item 41 | Sch 1 item 42 | Sch 1 item 43 | Sch 1 item 44 | Sch 1 item 45 | Sch 1 item 47 | Sch 1 item 48 | Sch 1 item 49 | Sch 1 item 50 | Sch 1 item 51 | Sch 1 item 52 | Sch 1 item 53 | Sch 1 item 54 | Sch 1 item 55 | Sch 1 item 58 | Sch 1 item 59 | Sch 1 item 60 | Sch 1 item 61 | Sch 1 item 62 | Sch 1 item 63 | Sch 1 item 64 | Sch 1 item 65A | Sch 1 item 66 | Sch 9 item 32, effective s 4, Sch 1 (item 66), Sch 2 (items 1–24, 35, 36, 48, 53–62), Sch 3 (items 1–29, 98–100), Sch 5 (items 32–34(1)) and Sch 8 (items 1–8, 11): 30 June 2000 (s 2(1)) Sch 1 (item 67): 1 pm (A.C.T.) 11 Nov 1999 (s 2(2)) Sch 2 (items 25, 26) and Sch 3 (items 30–97): 1 July 2000 (s 2(3), (8), (9)) | Amended by No 91 of 2000, effective Sch 2 (items 13–48, 130–142, 144(1), 145–147): 1 July 2000 (s 3(1)) | Amended by No 77 of 2001, Sch 2 item 92 | Sch 2 item 93 | Sch 2 item 94 | Sch 2 item 320 | Sch 2 item 321 | Sch 2 item 322 | Sch 2 item 323, effective Sch 2 (items 20–148, 488(1)): 30 June 2001 (s 2(1)) | Amended by No 167 of 2001, Sch 6 item 2, effective Sch 2, 3, Sch 4 (items 5–7), Sch 6 (items 1–3): 1 Oct 2001 (s 2(1)) Sch 5: 1 July 2000 (s 2(2)) | Amended by No 170 of 2001, Sch 4 item 21 | Sch 4 item 63 | Sch 4 item 10, effective Sch 1 (items 1, 5, 6), Sch 2 (items 1, 2), Sch 3 (items 1–10, 19(1)) and Sch 4: 1 Oct 2001 (s 2(1)) Sch 2 (items 4–27, 51): 12 pm (A.C.T.) 29 Jan 2001 (s 2(2)) Sch 2 (items 52–68, 92): 30 June 2001 (s 2(3)) | Amended by No 32 of 2002, Sch 2 item 1, effective s 4 and Sch 2: 30 May 2002 (s 2) | Amended by No 57 of 2002, Sch 12 item 5 | Sch 12 item 7 | Sch 12 item 8, effective Sch 1: 1 July 2001 (s 2(1) item 2) Sch 3, 5, 6, Sch 9 (items 1–8, 41–44), Sch 11 (items 1, 5), Sch 12 ,(items 8–10, 14, 15): 3 July 2002 (s 2(1) items 4, 7, 8, 16, 18, 24, 27) Sch 4 (items 1, 2, 4) and Sch 12 (item 42): 1 July 2000 (s 2(1) items 5, 46) Sch 10: 17 Nov 1999 (s 2(1) item 17) Sch 12 (items 4, 11): 1 July 1998 (s 2(1) items 21, 25) Sch 12 (items 5, 6): 21 Dec 1998 (s 2(1) item 22) Sch 12 (item 7): 7 Dec 1998 (s 2(1) item 23) Sch 12 (items 12, 13): 23 June 1998 (s 2(1) item 26) Sch 12 (item 38): 1 Oct 1997 (s 2(1) item 42) Sch 12 (item 40): 22 Dec 1999 (s 2(1) item 44) Sch 12 (items 43, 65): 1 July 1997 (s 2(1) items 47, 63) | Amended by No 10 of 2003, Sch 1 item 50 | Sch 1 item 51, effective s 4: 2 Apr 2003 (s 2(1) item 1) Sch 1 (items 34–52, 81): 20 May 2002 (s 2(1) item 2) | Amended by No 65 of 2003, Sch 3 item 1, effective s 4, Sch 3 (items 1, 2), Sch 4, Sch 5 (items 2, 4): 30 June 2003 (s 2(1) items 1, 3, 4, 7) Sch 5 (item 1): 16 July 1999 (s 2(1) item 6) | Amended by No 66 of 2003, Sch 3 item 46, effective s 4, Sch 1 and Sch 3 (items 1–46, 47, 48, 140(1), (5), (7)): 30 June 2003 (s 2(1) items 1, 2, 4–6, 14) Sch 3 (item 46A): 29 June 2002 (s 2(1) item 5A) | Amended by No 123 of 2003, Sch 3 item 1 | Sch 3 item 2, effective Sch 3 (items 1, 2): 5 Dec 2003 (s 2) | Amended by No 133 of 2003, Sch 4 item 25 | Sch 4 item 77, effective Sch 1 (items 1–3, 17(1)) and Sch 4 (items 21–37, 77, 78): 17 Dec 2003 (s 2) | Amended by No 20 of 2004, effective s 4, Sch 4 (item 1) and Sch 8 (items 9–11, 14): (s 2(1) items 1, 2, 4) Sch 6: 1 July 2000 (s 2(1) item 3) | Amended by No 161 of 2005, Sch 1 item 1 | Sch 1 item 3 | Sch 2G item 4 | Sch 2G item 5 | Sch 2G item 6 | Sch 2G item 7 | Sch 2G item 8 | Sch 2G item 9 | Sch 2G item 10 | Sch 2G item 11 | Sch 2G item 12 | Sch 2G item 13 | Sch 2G item 28 | Sch 2G item 29 | Sch 2G item 60 | Sch 2G item 66 | Sch 2G item 67 | Sch 2G item 69 | Sch 2G item 70 | Sch 2G item 71 | Sch 2G item 72, effective Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2) | Amended by No 58 of 2006, Sch 7 item 4 | Sch 7 item 47 | Sch 7 item 215, effective s 4 and Sch 7 (items 35–50, 241–256): 22 June 2006 (s 2(1) items 1, 6, 24) Sch 7 (items 173, 175): 30 June 2000 (s 2(1) items 9, 11) Sch 7 (item 174): 24 Oct 2002 (s 2(1) item 10) Sch 7 (items 176, 178): 30 June 2004 (s 2(1) items 12, 14) Sch 7 (item 177): 24 Dec 1992 (s 2(1) item 13) | Amended by No 101 of 2006, Sch 1 item 154 | Sch 2 item 411 | Sch 2 item 412 | Sch 2 item 705 | Sch 2 item 706 | Sch 2 item 851 | Sch 2 item 852, effective Sch 1 (items 1, 5–199), Sch 2 (items 118–565, 1017, 1023–1037) and Sch 6 (items 1–4, 6–15): 14 Sept 2006 (s 2(1) items 2, 4) Sch 3 (items 1–10) and Sch 4 (items 1–11): 1 Jan 2008 (s 2(1) item 3) | Amended by No 15 of 2007, Sch 1 item 114, effective Sch 1 (items 1–8, 22–149, 406(1)–(3)) and Sch 3 (items 6, 7): 15 Mar 2007 (s 2(1) items 2, 6) | Amended by No 32 of 2007, Sch 3 item 3, effective Sch 3 (items 1–7): 1 July 2007 (s 2(1) item 8) | Amended by No 80 of 2007, Sch 3 item 328 | Sch 3 item 103 | Sch 3 item 104 | Sch 3 item 105 | Sch 3 item 106 | Sch 3 item 107 | Sch 3 item 108, effective Sch 3 (items 97–108) and Sch 8 (items 1, 9): 21 June 2007 (s 2) | Amended by No 143 of 2007, Sch 1 item 770 | Sch 1 item 68 | Sch 1 item 24 | Sch 4 item 45, effective Sch 1 (items 2, 3, 18–127, 222, 223, 224(1), (2), 225, 226), Sch 4 (items 1–46, 51, 52), Sch 7 (items 9–17, 104(2)) and Sch 8: 24 Sept 2007 (s 2(1) items 2, 4, 11, 12) | Amended by No 164 of 2007, Sch 12 item 4 | Sch 1 item 35 | Sch 10 item 376 | Sch 10 item 42 | Sch 10 item 43 | Sch 10 item 67 | Sch 10 item 70 | Sch 11 item 46, effective s 4, Sch 1 (items 27–35, 71), Sch 8 (items 1–5, 13(1)), Sch 10 (items 2–6) and Sch 11 (items 1–48, 78–80): 25 Sept 2007 (s 2(1) items 1, 2, 5, 8) Sch 10 (items 26–56): 1 July 2010 (s 2(1) item 6) Sch 12 (items 66–71): 27 Sept 2007 (s 2(1) item 9) | Amended by No 133 of 2009, Sch 1 item 19, effective Sch 1 (items 9–20, 86, 87): 14 Dec 2009 (s 2(1) item 2) | Amended by No 75 of 2010, Sch 6 item 3 | Sch 6 item 4 | Sch 6 item 108, effective Sch 1 (items 1–33, 35) and Sch 6 (items 2–6): 29 June 2010 (s 2(1) item 2) Sch 2 (items 1, 2, 25): 1 July 2010 (s 2(1) item 3) Sch 5 (items 2–6): 28 June 2010 (s 2(1) item 7) | Amended by No 79 of 2010, Sch 2 item 245 | Sch 4 item 23 | Sch 4 item 24, effective Sch 1 (items 1, 2, 17–26, 53, 57, 66), Sch 3 (item 1), Sch 4 (items 1, 9–37, 51) and Sch 5 (items 1, 3–5, 13): 1 July 2010 (s 2(1) items 2, 4) Sch 2 (items 1, 10–15): 1 July 2010 (s 2(1) item 3) | Amended by No 41 of 2011, Sch 5 item 31 | Sch 5 item 412, effective Sch 5 (items 15–17): 28 June 2011 (s 2(1) item 11) Sch 5 (items 57–73, 79, 176–367, 376–382, 412, 413): 27 June 2011 (s 2(1) items 17, 23) | Amended by No 93 of 2011, Sch 1 item 355 | Sch 3 item 48, effective Sch 3 (items 5–14, 44–53) and Sch 4 (items 1–6): 8 Sept 2011 (s 2(1) items 3, 6, 7) Sch 3 (item 43): never commenced (s 2(1) item 5) | Amended by No 58 of 2012, Sch 1 item 1, effective Sch 1 (item 1) and Sch 3: 21 June 2012 (s 2(1) items 2, 3) | Amended by No 115 of 2012, Sch 1 item 2 | Sch 1 item 3 | Sch 1 item 4, effective Sch 1 (items 1–4): 8 Sept 2012 (s 2) | Amended by No 101 of 2013, Sch 2 item 815 | Sch 2 item 13 | Sch 2 item 14 | Sch 2 item 15 | Sch 2 item 16, effective Sch 1 (items 1–8, 10) and Sch 2 (items 1, 8–19, 50): 29 June 2013 (s 2(1) items 2, 3) | Amended by No 68 of 2014, Sch 2 item 1 | Sch 2 item 170B, effective Sch 1 (items 1, 6(1)) and Sch 2: 30 June 2014 (s 2(1) item 2) | Amended by No 109 of 2014, Sch 10 item 20 | Sch 10 item 27, effective Sch 10 (items 20, 27): 17 Oct 2014 (s 2(1) item 8) | Amended by No 53 of 2016, Sch 1 item 276 | Sch 6 item 15, effective Sch 3 (item 1), Sch 5 (items 1, 3, 6–28, 75), Sch 6 (items 1–20) and Sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) | Amended by No 27 of 2017, Sch 1 item 4 | Sch 1 item 5, effective Sch 1 (items 2–6, 8–13, 52): 1 July 2017 (s 2(1) items 2, 4) Sch 1 (item 7): never commenced (s 2(1) item 3) | Amended by No 49 of 2019, Sch 4 item 70, effective Sch 4 (items 67–70): 1 July 2019 (s 2(1) item 12) | Amended by No 92 of 2020, Sch 3 item 23 | Sch 3 item 24 | Sch 3 item 40, effective Sch 1 (items 17, 24): 15 Oct 2020 (s 2(1) item 4) Sch 2 (items 4–15), Sch 3 (items 17–24, 40) and Sch 5 (items 1–10, 56): 1 Jan 2021 (s 2(1) item 7) | Amended by No 127 of 2021, Sch 3 item 32 | Sch 3 item 160, effective Sch 3 (item 32): 8 Dec 2021 (s 2(1) item 4) | Amended by No 75 of 2022, Sch 4 item 1, effective Sch 4 (items 1, 38): 1 July 2022 (s 2(1) item 4) | Amended by No 135 of 2024, Sch 3 item 1 | Sch 3 item 2 | Sch 3 item 3, effective Sch 3 (items 1–3): 1 Jan 2024 (s 2(1) item 4) | Amended by No 138 of 2024, Sch 1 item 1, effective Sch 1 (item 1): 1 Jan 2024 (s 2(1) item 2)

s 170A — Amendment of assessments—interaction with other Acts

Scope (1) This section applies if a law other than section 170 or this section provides that section 170 does not prohibit the amendment of an assessment if the amendment is made: (a) for a particular purpose; and (b) within a particular period (the later amendment period ). Extensions—applications by taxpayer (2) Section 170 does not prevent the Commissioner amending the assessment even though the later amendment period has ended if the taxpayer applies: (a) before the end of the later amendment period; and (b) in the approved form mentioned in subsection 170(5); for an amendment for the purpose mentioned in paragraph (1)(a) of this section. The Commissioner may amend the assessment to give effect to the decision on the application. Extensions—giving effect to private rulings (3) The Commissioner may amend an assessment even though the later amendment period has ended if: (a) the taxpayer applies for a private ruling under Division 359 in Schedule 1 to the Taxation Administration Act 1953 : (i) before the end of the later amendment period; and (ii) for the purpose mentioned in paragraph (1)(a); and (b) the Commissioner makes a private ruling under that Division because of the application. The Commissioner may amend the assessment to give effect to the ruling. Extensions—Federal Court orders or taxpayer consent (4) If: (a) the Commissioner has started to examine the affairs of a taxpayer in relation to an assessment for the purpose mentioned in paragraph (1)(a); and (b) the Commissioner has not completed the examination before the end of the later amendment period or that period as extended; the later amendment period may be extended as follows: Extensions of later amendment period In this case: The position is: 1 The Commissioner, before the end of the later amendment period or that period as extended, applies to the Federal Court of Australia for an order extending the later amendment period The Court may order an extension of the later amendment period for a specified period if it is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the later amendment period, or that period as extended, because of: (a) any action taken by the taxpayer; or (b) any failure of the taxpayer to take action that would have been reasonable for the taxpayer to take. 2 The Commissioner, before the end of the later amendment period or that period as extended, requests the taxpayer to consent to extending the later amendment period The taxpayer may, by notice in writing, consent to extending the later amendment period for a specified period. (5) The later amendment period for an assessment may be extended more than once under subsection (4).

Amendment history: Inserted by No 103 of 1965, effective 14 Dec 1965 (s 2) | Repealed by No 161 of 2005, Sch 2G item 14, effective Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2) | Inserted by No 12 of 2012, Sch 6 item 189, effective s 4 and Sch 6 (items 1, 2, 188, 189, 219–234, 248, 252–255): 21 Mar 2012 (s 2(1) items 1, 6, 31) Sch 6 (items 30, 31): 15 Mar 2007 (s 2(1) item 12) Sch 6 (items 153–156): 22 Mar 2012 (s 2(1) item 26)

s 170B — Protection for anticipation of certain discontinued announcements

Limit on amending assessments (1) The Commissioner cannot amend an assessment of a taxpayer about a particular in a way that would produce a less favourable result for the taxpayer if: (a) the taxpayer has anticipated amendments (see subsection (3)); and (b) in making the assessment, the particular was ascertained on the basis of the taxpayer’s anticipated amendments having been made; and (c) that way of amending the assessment would instead ascertain the particular on the basis of the anticipated amendments not having been made. Anticipation not to give rise to administrative overpayment (2) If ascertaining that particular on the basis of the taxpayer’s anticipated amendments not having been made: (a) would not result in an amendment of the assessment; but (b) would, apart from this subsection, result in an amount the Commissioner paid to the taxpayer on the basis of the assessment being an administrative overpayment (within the meaning of section 8AAZN of the Taxation Administration Act 1953 ); the amount of the administrative overpayment is taken, for the purposes of the taxation law, to be an amount to which the taxpayer is entitled. Meaning of anticipated amendments (3) One or more hypothetical amendments of the taxation law, taken together, are anticipated amendments a taxpayer has if: (a) the amendments, if made, would reasonably reflect an announcement mentioned in the table in subsection (8); and (b) a statement made by or on behalf of the taxpayer: (i) is consistent with the amendments having been made; and (ii) is made in good faith; and (iii) meets the timing requirement in column 2 of an applicable item of the following table. Timing requirements for statements Item Column 1 In this case: Column 2 The timing requirement is: 1 The statement is made in a return lodged on or before 14 December 2013 The return: (a) is lodged in the period that the announcement is on foot (see subsection (8)); and (b) was not required to be lodged before the start of that period. 2 The statement is made otherwise than in a return The statement is made in the period that the announcement is on foot. 3 All of the following apply: (a) the statement is made in a return of the taxpayer lodged after 14 December 2013; (b) the return was not required to be lodged on or before that date; (c) just before the statement is made, no return has been given, and no assessment has been made, in relation to the taxpayer in respect of the year of income to which the statement relates The statement relates to the application of the taxation law (as hypothetically amended by the amendments) to events or circumstances: (a) that happened or existed on or before 14 December 2013; or (b) to the happening or existence of which the taxpayer had definitively committed on or before 14 December 2013. (4) In determining, for the purpose of paragraph (3)(a), whether amendments would reasonably reflect an announcement, have regard to the following: (a) the terms of the announcement; (b) any related document published after the announcement on behalf of the Commonwealth Government, the Department of the Treasury or the Commissioner; (c) if the announcement proposes to apply to a particular kind of scheme or practice—that kind of scheme or practice; (d) existing provisions of the taxation law, if: (i) the announcement proposes to effect a particular result in relation to the operation of the taxation law; and (ii) those existing provisions effect that result, or a substantially similar result, in relation to another matter; (e) any other relevant matter. Operation of section (5) Subsections (1) and (2) apply despite any other provision of the taxation law, apart from subsections (6) and (7), (which are about exceptions). Exceptions (6) Subsection (1) does not prevent an amendment if: (a) the taxpayer applies for the amendment; or (b) the Commissioner may make the amendment in accordance with item 6 (objection, review or appeal) of the table in subsection 170(1). (7) Subsections (1) and (2) do not apply in relation to a particular ascertained on the basis of a taxpayer’s anticipated amendments, in any year of income, if: (a) the taxpayer makes a statement (in a return of income or otherwise) for a later year of income that is not consistent with the taxpayer’s anticipated amendments; and (b) if the assessment for the later year of income was to be made on the basis of the taxpayer’s anticipated amendments, instead of on the basis of the statement, the result would be less favourable to the taxpayer in that year of income. Note: An amendment of an assessment can be made at any time to give effect to this subsection (see item 27A of the table in subsection 170(10)). Table of discontinued announcements (8) The following table lists the announcements to which this section applies. An announcement is on foot during the period: (a) starting on the day mentioned in column 2 of the table for the announcement; and (b) ending on 14 December 2013. Discontinued announcements Item Column 1 Announcement Column 2 Announcement date 1 Budget Paper No. 2, Budget Measures 2012 ‑ 13, Part 1, topic headed “Bad debts—ensuring consistent treatment in related party financing arrangements”. 8 May 2012 2 Budget Paper No. 2, Budget Measures 2012 ‑ 13, Part 1, topic headed “Capital gains tax—refinements to the income tax law in relation to deceased estates”, second dot point (which is about modifying application dates for 2 minor changes from the 2011 ‑ 12 Budget). 8 May 2012 3 The following constitute the announcement: (a) Media Release No. 137, issued by the then Assistant Treasurer on 9 October 2011, titled “No Capital Gains Tax for Properties in Natural Disaster Land Swap Programs”; (b) Budget Paper No. 2, Budget Measures 2012 ‑ 13, Part 1, topic headed “Capital gains tax—broadening relief for taxpayers affected by natural disasters”. 9 October 2011 4 Budget Paper No. 2, Budget Measures 2011 ‑ 12, Part 1, topic headed “Income tax relief for water reforms”. 10 May 2011 5 Budget Paper No. 2, Budget Measures 2011 ‑ 12, Part 1, topic headed “Capital gains tax and other roll ‑ overs for amalgamations of indigenous corporations”. 10 May 2011 6 Budget Paper No. 2, Budget Measures 2011 ‑ 12, Part 1, topic headed “Securities lending arrangements tax rules—extending the scope to address insolvency issues”. 10 May 2011 7 Budget Paper No. 2, Budget Measures 2011 ‑ 12, Part 1, topic headed “Capital gains tax—exemption for incentives related to renewable resources or for preserving environmental benefits”. 10 May 2011 8 Budget Paper No. 2, Budget Measures 2011 ‑ 12, Part 1, topic headed “Improvements to the company loss recoupment rules”, but not the sentence stating “This measure will modify the continuity of ownership test so that ownership does not need to be traced through certain superannuation entities.”. 10 May 2011 9 Mid ‑ Year Economic and Fiscal Outlook 2010 ‑ 11, Appendix A, Part 2, topic headed “Consolidation—operation of the rules following a demerger”. 9 November 2010 10 The following constitute the announcement: (a) Budget Paper No. 2, Budget Measures 2009 ‑ 10, Part 1, topic headed “Uniform capital allowance regime—technical changes”; (b) Media Release No. 048, issued by the then Assistant Treasurer on 12 May 2009, Attachment D headed “Technical changes to uniform capital allowance regime”. 12 May 2009 11 The following constitute the announcement: (a) Budget Paper No. 2, Budget Measures 2007 ‑ 08, Part 1, topic headed “Consolidation—further improvements to the operation of the income tax law for consolidated groups”; (b) Media Release No. 050, issued by the then Minister for Revenue and Assistant Treasurer on 8 May 2007, topic headed “Extension of the single entity rule and entry history rule for certain CGT integrity provisions affecting third parties”. 8 May 2007 12 The following constitute the announcement: (a) Budget Paper No. 2, Budget Measures 2007 ‑ 08, Part 1, topic headed “Consolidation—further improvements to the operation of the income tax law for consolidated groups”; (b) Media Release No. 050, issued by the then Minister for Revenue and Assistant Treasurer on 8 May 2007, topic headed “Trusts joining or leaving a consolidated group or MEC group part way through an income year”. 8 May 2007 13 The following constitute the announcement: (a) Budget Paper No. 2, Budget Measures 2006 ‑ 07 , Part 1, topic headed “Simplified imputation system—franking credits available to life tenants”; (b) Media Release No. 010, issued by the then Minister for Revenue and Assistant Treasurer on 20 March 2006, titled “Franking credits available to life tenants”. 20 March 2006 (9) In this section: anticipated amendments , in relation to a taxpayer, has the meaning given by subsection (3). on foot , in relation to an announcement, has the meaning given by subsection (8). taxation law has the meaning given by subsection 995 ‑ 1(1) of the Income Tax Assessment Act 1997 .

Amendment history: Inserted by No 103 of 1965, effective 14 Dec 1965 (s 2) | Amended by No 51 of 1973, effective s 25(1): 25 June 1968 (s 25(2)) Remainder: 14 June 1973 (s 2) | Amended by No 216 of 1973, effective Sch 1: 31 Dec 1973 (s 2) | Amended by No 20 of 1974, effective Sch 1: 31 Dec 1973 (s 2) | Amended by No 108 of 1981, effective s 4–25: 24 June 1981 (s 2) | Repealed by No 91 of 2000, Sch 2 item 24, effective Sch 2 (items 13–48, 130–142, 144(1), 145–147): 1 July 2000 (s 3(1)) | Inserted by No 68 of 2014, Sch 2 item 1, effective Sch 1 (items 1, 6(1)) and Sch 2: 30 June 2014 (s 2(1) item 2)

s 170C — Power of Commissioner to reduce amount of tax payable in certain cases

For the purposes of the making of an assessment on or after 1 July 1966, the Commissioner may reduce by One cent the amount of tax that would, but for this section, be payable by a taxpayer being a person other than a company or being a company in the capacity of a trustee, before deducting any rebate or credit to which the taxpayer is entitled.

Amendment history: Inserted by No 103 of 1965, effective 14 Dec 1965 (s 2) | Amended by No 51 of 1973, effective s 25(1): 25 June 1968 (s 25(2)) Remainder: 14 June 1973 (s 2) | Amended by No 108 of 1981, effective s 4–25: 24 June 1981 (s 2)

s 171 — Where no notice of assessment served

(1) Where a taxpayer has duly furnished to the Commissioner a return of income, or of profits or gains of a capital nature, and no notice of assessment in respect thereof has been served within 12 months thereafter, the taxpayer may in writing by registered post request the Commissioner to make an assessment. (2) If within 3 months after the receipt by the Commissioner of the request a notice of assessment is not served upon the taxpayer, any assessment issued thereafter in respect of that income, or of those profits or gains, shall be deemed to be an amended assessment, and for the purpose of determining whether such amended assessment may be made, the taxpayer shall be deemed to have been served on the last day of the 3 months with a notice of assessment in respect of which income tax was payable on that day.

Amendment history: Amended by No 108 of 1981, item 124, effective s 4–25: 24 June 1981 (s 2) | Amended by No 52 of 1986, item 23, effective 24 June 1986 (s 2) | Amended by No 41 of 2011, Sch 5 item 324, effective Sch 5 (items 15–17): 28 June 2011 (s 2(1) item 11) Sch 5 (items 57–73, 79, 176–367, 376–382, 412, 413): 27 June 2011 (s 2(1) items 17, 23)

s 171A — Limited period to make assessments for nil liability returns for the 2003 ‑ 04 year of income or earlier

(1) If the circumstances set out in column 2 of the following table apply to a taxpayer in relation to the 2003 ‑ 04 year of income (a nil year ) or an earlier year of income (also a nil year ), the Commissioner cannot make an original assessment for that taxpayer for that year in the circumstances set out in column 3: Making assessments Column 1 Item Column 2 In this case: Column 3 the position is: 1 The taxpayer’s return of income for a nil year disclosed, or the Commissioner has given the taxpayer a notice for a nil year that stated, either of the following: (a) the taxpayer had an amount of taxable income, and that no tax was payable; (b) the taxpayer had no taxable income because the taxpayer’s deductions equalled the taxpayer’s assessable income; and the taxpayer did not deduct a tax loss in the nil year The Commissioner cannot make an original assessment for the taxpayer for the nil year after the later of the following: (a) 31 October 2008; (b) the period of 4 years beginning on the day on which the taxpayer lodged the taxpayer’s return of income for the nil year. 2 The taxpayer’s return of income for a nil year disclosed, or the Commissioner has given the taxpayer a notice for a nil year that stated, either of the following: (a) the taxpayer had an amount of taxable income, and that no tax was payable; (b) the taxpayer had no taxable income because the taxpayer’s deductions equalled the taxpayer’s assessable income; and the taxpayer did deduct a tax loss in the nil year The Commissioner cannot make an original assessment for the taxpayer for the nil year after the period of 6 years beginning on the later of the following: (a) the day on which the taxpayer lodged the taxpayer’s return of income for the 2004 ‑ 05 year of income or, if the taxpayer is a member of a consolidated group at the end of that year of income, the day on which head company’s return of income for that year of income is lodged; (b) the day on which the taxpayer lodged the taxpayer’s return of income for the nil year. 3 The taxpayer had a tax loss in a nil year, none of which has been carried forward to the 2004 ‑ 05 year of income The Commissioner cannot make an original assessment for the taxpayer for the nil year after the period of 6 years beginning on the later of the following: (a) the day on which the taxpayer lodged the taxpayer’s return of income for the 2004 ‑ 05 year of income or, if the taxpayer is a member of a consolidated group at the end of that year of income, the day on which head company’s return of income for that year of income is lodged; (b) the day on which the taxpayer lodged the taxpayer’s return of income for the nil year. 4 (a) the taxpayer had a tax loss in a nil year, some or all of which has been carried forward to the 2004 ‑ 05 year of income; and (b) the taxpayer or, if the taxpayer is a member of a consolidated group at the end of the 2004 ‑ 05 year of income, the head company notifies the Commissioner, in the approved form, that the taxpayer or the head company had a tax loss in the nil year The Commissioner cannot make an original assessment for the taxpayer for the nil year after the period of 6 years beginning on the later of the following: (a) the day on which the Commissioner received the notification; (b) the day on which the taxpayer lodged the taxpayer’s return of income for the nil year. (2) Subsection (1) does not apply in relation to a nil year if: (a) the Commissioner is of the opinion there has been fraud or evasion; or (b) had the Commissioner made an assessment, in accordance with the taxpayer’s return of income, that the taxpayer had no taxable income or that no tax was payable by the taxpayer (assuming that such an assessment could have been made)—this Act would not have prevented the Commissioner amending the assessment at any time.

Amendment history: Inserted by No 161 of 2005, effective Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2)

s 172 — Refunds of amounts overpaid

(1) Where, by reason of an amendment of an assessment, a person’s liability to tax (the earlier liability ) is reduced: (a) the amount by which the tax is so reduced is taken never to have been payable for the purposes of: (i) provisions of this Act that apply the general interest charge; and (ii) Division 280 in Schedule 1 to the Taxation Administration Act 1953 (which applies the shortfall interest charge); and (b) the Commissioner must apply the amount of any tax overpaid in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953 . (1A) However, if a later amendment of an assessment is made and all or some of the person’s earlier liability in relation to a particular is reinstated, paragraph (1)(a) is taken not to have applied, or not to have applied to the extent that the earlier liability is reinstated. (2) In subsection (1), unless the contrary intention appears, tax includes the general interest charge under a provision of this Act, additional tax under Part VII and shortfall interest charge. Note 1: The general interest charge is worked out under of Part IIA of the Taxation Administration Act 1953 . Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.

Amendment history: Repealed and substituted by No 87 of 1978, item 28, effective s 17–71: 22 June 1978 (s 2) | Repealed and substituted by No 123 of 1984, Sch 16 item 101, effective s 91–166 and 385: 14 Dec 1984 (s 2(3)) | Amended by No 46 of 1986, item 22, effective s 4–26: 24 June 1986 (s 2(1)) | Amended by No 101 of 1992, effective s 16–32, 34 and Sch 1–4: 30 June 1992 (s 2) | Amended by No 11 of 1999, item 69 | item 70 | item 71, effective Sch 1 (items 12–276, 398–404): 1 July 1999 (s 2(3), (4)) Sch 2: 9 Apr 1999 (s 2(2)) Sch 3 (items 1, 2): 31 Mar 1999 (s 2(1)) | Amended by No 91 of 2000, Sch 2 item 25, effective Sch 2 (items 13–48, 130–142, 144(1), 145–147): 1 July 2000 (s 3(1)) | Amended by No 75 of 2005, Sch 1 item 3 | Sch 1 item 4 | Sch 1 item 5 | Sch 1 item 6, effective Sch 1 (items 2–17, 31): 29 June 2005 (s 2) | Amended by No 101 of 2006, Sch 2 item 1028, effective Sch 1 (items 1, 5–199), Sch 2 (items 118–565, 1017, 1023–1037) and Sch 6 (items 1–4, 6–15): 14 Sept 2006 (s 2(1) items 2, 4) Sch 3 (items 1–10) and Sch 4 (items 1–11): 1 Jan 2008 (s 2(1) item 3)

s 172A — Consequences of amendment of assessments of tax offset refunds

Amendment increases total of tax offset refunds (1) If, by reason of an amendment of an assessment, the total of a person’s tax offset refunds is increased, the Commissioner must apply the amount of the increase in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953 . Note: Interest on the amount of the increase may be payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 . Amendment reduces total of tax offset refunds (2) If: (a) by reason of an amendment of an assessment, the total of a person’s tax offset refunds is reduced; and (b) as a result, an amount applied in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953 before the amendment was excessive; the person is liable to pay to the Commonwealth the amount of the excess. The amount is due 21 days after the Commissioner gives the person notice of the amended assessment. Note: For provisions about collection and recovery of the amount, see Part 4 ‑ 15 in Schedule 1 to the Taxation Administration Act 1953 . Shortfall interest charge (2A) If: (a) a person is liable to pay an amount under subsection (2); and (b) as a result, the person is liable to pay shortfall interest charge on that amount under section 280 ‑ 102F in Schedule 1 to the Taxation Administration Act 1953 ; then the shortfall interest charge is due and payable 21 days after the day on which the Commissioner gives the person notice of the charge. Note: Shortfall interest charge is worked out under Division 280 in Schedule 1 to the Taxation Administration Act 1953 . General interest charge (3) If any of the amount (the overpayment ) the person is liable to pay under subsection (2), or any amount of shortfall interest charge on the overpayment, remains unpaid after the time by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that: (a) starts at the beginning of the day on which the overpayment or shortfall interest charge was due to be paid; and (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid: (i) the overpayment or shortfall interest charge; (ii) general interest charge on any of the overpayment or shortfall interest charge. Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 .

Amendment history: Amended by No 88 of 2013, effective s 4 and Sch 7 (item 199): 28 June 2013 (s 2(1) items 1, 21) Sch 5 (items 11–20, 24): 1 July 2013 (s 2(1) item 10) Sch 5 (items 28–34, 36–38) and Sch 6 (items 1, 2, 49): 29 June 2013 (s 2(1) items 11, 13) Sch 5 (item 35): 29 June 2013 (s 2(1) item 12) | Amended by No 9 of 2025, Sch 1 item 8 | Sch 1 item 9 | Sch 1 item 10 | Sch 1 item 11 | Sch 1 item 13 | Sch 1 item 280 | Sch 1 item 21, effective Sch 1 (items 8–13) and Sch 2 (items 2–11): 1 Apr 2025 (s 2(1) items 3, 5) Sch 1 (items 22–31): 1 Jan 2026 (s 2(1) item 4)

s 173 — Amended assessment to be an assessment

Except as otherwise provided every amended assessment shall be an assessment for all the purposes of this Act.

s 174 — Notice of assessment

(1) As soon as conveniently may be after any assessment is made, the Commissioner shall serve notice thereof in writing by post or otherwise upon the person liable to pay the tax. (3) In subsection (1), tax includes additional tax under Part VII.

Amendment history: Amended by No 87 of 1978, item 29, effective s 17–71: 22 June 1978 (s 2) | Amended by No 123 of 1984, Sch 16 item 102, effective s 91–166 and 385: 14 Dec 1984 (s 2(3)) | Amended by No 73 of 1989, item 4, effective Sch: 21 June 1989 (s 2)

s 175 — Validity of assessment

The validity of any assessment shall not be affected by reason that any of the provisions of this Act have not been complied with.

s 175A — Objections against assessments

(1) A taxpayer who is dissatisfied with an assessment made in relation to the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 . (2) A taxpayer cannot object under subsection (1) against an assessment ascertaining that: (a) the taxpayer has no taxable income; or (b) the taxpayer has an amount of taxable income and no tax is payable. (3) Subsection (2) does not prevent the taxpayer from objecting against an assessment if the taxpayer is seeking an increase in: (a) the taxpayer’s liability; or (b) the total of the taxpayer’s tax offset refunds.

Amendment history: Inserted by No 216 of 1991, Sch 4 item 1953, effective s 10, 12–39, 41, 43, 44, 67–81, 83–86, 89(1), (3)–(19), 91, 92, 102, 103 and Sch 1–4: 24 Dec 1991 (s 2(1)) s 11 and 89(2): 22 Jan 1991 (s 2(2)) s 40 and 42: 6 Jan 1992 (s 2(3)) s 45, 46, 48–51, 54–58, 60–66, 90(1), (3)–(14), 93–96 and 98–101: 21 Aug 1991 (s 2(4)) s 47, 52, 53, 59, 90(2) and 97: 3 pm (A.C.T) 20 Aug 1991 (s 2(5)) s 82(2): 25 Dec 1991 (s 2(6)) | Amended by No 161 of 2005, Sch 2G item 17 | Sch 2G item 18 | Sch 2G item 28, effective Sch 1 (items 1–25, 38–45, 62–73) and Sch 2 (items 4, 5, 28–32): 19 Dec 2005 (s 2) | Amended by No 88 of 2013, Sch 5 item 18 | Sch 5 item 19 | Sch 5 item 20, effective s 4 and Sch 7 (item 199): 28 June 2013 (s 2(1) items 1, 21) Sch 5 (items 11–20, 24): 1 July 2013 (s 2(1) item 10) Sch 5 (items 28–34, 36–38) and Sch 6 (items 1, 2, 49): 29 June 2013 (s 2(1) items 11, 13) Sch 5 (item 35): 29 June 2013 (s 2(1) item 12) | Amended by No 92 of 2020, Sch 2 item 15, effective Sch 1 (items 17, 24): 15 Oct 2020 (s 2(1) item 4) Sch 2 (items 4–15), Sch 3 (items 17–24, 40) and Sch 5 (items 1–10, 56): 1 Jan 2021 (s 2(1) item 7)

s 177A — Interpretation

(1) In this Part, unless the contrary intention appears: associate has the same meaning as in Part X. Australian customer , of a foreign entity, means another entity who: (a) is in Australia, or is an Australian entity; and (b) if the foreign entity is a member of a global group—is not a member of that global group. Australian entity has the same meaning as in Part X. Australian permanent establishment of an entity means: (a) if: (i) the entity is a resident in a country that has entered into an international tax agreement (within the meaning of subsection 995 ‑ 1(1) of the Income Tax Assessment Act 1997 ) with Australia; and (ii) that agreement contains a permanent establishment article (within the meaning of that subsection); a permanent establishment (within the meaning of that agreement) in Australia; or (b) otherwise—a permanent establishment of the person in Australia. capital loss has the meaning given by subsection 995 ‑ 1(1) of the Income Tax Assessment Act 1997 . CMPTI tax offset has the same meaning as in the Income Tax Assessment Act 1997 . DPT base amount has the meaning given by subsection 177P(2). DPT provisions means sections 177H, 177J, 177K, 177L, 177M, 177N, 177P, 177Q and 177R. DPT tax benefit has the meaning given by subsection 177J(1). entity has the meaning given by section 960 ‑ 100 of the Income Tax Assessment Act 1997 . foreign entity has the meaning given by subsection 995 ‑ 1(1) of the Income Tax Assessment Act 1997 . foreign entity participant : (a) if a beneficiary of a trust estate or a partner in a partnership is a foreign entity, the trust estate or partnership has a foreign entity participant ; and (b) if a trust estate or partnership has a foreign entity participant (including through a previous operation of this paragraph): (i) a trust of which the trust estate or partnership is a beneficiary also has a foreign entity participant ; and (ii) a partnership in which the trust estate or partnership is a partner also has a foreign entity participant . foreign income tax offset means a tax offset allowed under Division 770 of the Income Tax Assessment Act 1997 . foreign law has the meaning given by subsection 995 ‑ 1(1) of the Income Tax Assessment Act 1997 . global group means a group of entities, at least one of which is a foreign entity, that are consolidated for accounting purposes as a single group. hydrogen production tax offset has the same meaning as in the Income Tax Assessment Act 1997 . innovation tax offset means a tax offset allowed under: (a) Subdivision 61 ‑ P (about early stage venture capital limited partnerships) of the Income Tax Assessment Act 1997 ; or (b) Subdivision 360 ‑ A (about early stage investors in innovation companies) of that Act. non ‑ refundable R&D tax offset means a tax offset allowed under Division 355 of the Income Tax Assessment Act 1997 , other than a refundable R&D tax offset. refundable R&D tax offset means a tax offset allowed under Division 355 of the Income Tax Assessment Act 1997 that is subject to the refundable tax offset rules under section 67 ‑ 30 of that Act. scheme means: (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and (b) any scheme, plan, proposal, action, course of action or course of conduct. significant global entity has the meaning given by section 960 ‑ 555 of the Income Tax Assessment Act 1997 . standard corporate tax rate means the rate of tax in respect of the taxable income of a company covered by paragraph 23(2)(b) of the Income Tax Rates Act 1986 . supply has the meaning given by section 9 ‑ 10 of the GST Act, but does not include any of the following, or of any combination of 2 or more of the following: (a) a supply of an equity interest in an entity; (b) a supply of a debt interest in an entity; (c) a supply of an option for: (i) a supply of a kind referred to in paragraph (a) or (b); or (ii) any combination of 2 or more such supplies. taxpayer includes a taxpayer in the capacity of a trustee. (2) The definition of taxpayer in subsection (1) shall not be taken to affect in any way the interpretation of that expression where it is used in this Act other than this Part. (3) The reference in the definition of scheme in subsection (1) to a scheme, plan, proposal, action, course of action or course of conduct shall be read as including a reference to a unilateral scheme, plan, proposal, action, course of action or course of conduct, as the case may be. (4) A reference in this Part to the carrying out of a scheme by a person shall be read as including a reference to the carrying out of a scheme by a person together with another person or other persons. (5) A reference in this Part (other than sections 177DA and 177J) to a scheme or a part of a scheme being entered into or carried out by a person for a particular purpose shall be read as including a reference to the scheme or the part of the scheme being entered into or carried out by the person for 2 or more purposes of which that particular purpose is the dominant purpose.

Amendment history: Inserted by No 110 of 1981, effective s 4–11: 24 June 1981 (s 2) | Amended by No 135 of 1990, item 17, effective s 7–33, 38(1), (2), 39(1) and Sch (Pt 1): 28 Dec 1990 (s 2(1)) s 38(3), 39(2) and Sch (Part 3): 1 July 1993 (s 2(3)) s. 38(4), 39(3) and Sch (Part 4): 8 Jan 1991 (s 2(4)) | Amended by No 208 of 1992, item 10, effective s 4–6, 19–33 and 47–61: 1 July 1994 (s 2(2)(a)) s 7–18 and 34–46: 22 Dec 1992 (s 2(1)) | Amended by No 46 of 1998, Sch 10 item 403, effective s 4, Sch 2 (items 49–522), Sch 3 (items 13–20), Sch 4 (items 12–27), Sch 5 (items 6–10), Sch 6 (items 8–30), Sch 7 (items 12–19), Sch 8 (items 2–9) and Sch 9 (items 7, 8): 22 June 1998 (s 2(1)–(4)) | Amended by No 11 of 1999, item 1, effective Sch 1 (items 12–276, 398–404): 1 July 1999 (s 2(3), (4)) Sch 2: 9 Apr 1999 (s 2(2)) Sch 3 (items 1, 2): 31 Mar 1999 (s 2(1)) | Amended by No 16 of 1999, Sch 1 item 2, effective s 4, Sch 1, Sch 3 (items 8–10, 12(3)), Sch 5, 6, Sch 7 (items 1–8) and Sch 8–11: 9 Apr 1999 (s 2(1)) | Amended by No 173 of 2000, Sch 4 item 1, effective s 4 and Sch 4 (items 1–5, 65(1), (2)): 21 Dec 2000 (s 2(1)) | Amended by No 143 of 2007, Sch 1 item 69 | Sch 1 item 70, effective Sch 1 (items 2, 3, 18–127, 222, 223, 224(1), (2), 225, 226), Sch 4 (items 1–46, 51, 52), Sch 7 (items 9–17, 104(2)) and Sch 8: 24 Sept 2007 (s 2(1) items 2, 4, 11, 12) | Amended by No 170 of 2015, Sch 2 item 1 | Sch 2 item 2, effective Sch 2 (items 1–4, 7): 11 Dec 2015 (s 2(1) item 1) | Amended by No 54 of 2016, Sch 1 item 2, effective Sch 1 (items 2–11, 19): 1 July 2016 (s 2(1) item 2) | Amended by No 27 of 2017, Sch 1 item 6 | Sch 1 item 7 | Sch 1 item 8, effective Sch 1 (items 2–6, 8–13, 52): 1 July 2017 (s 2(1) items 2, 4) Sch 1 (item 7): never commenced (s 2(1) item 3) | Amended by No 124 of 2018, Sch 1 item 1, effective Sch 1: 1 Jan 2019 (s 2(1) item 1) | Amended by No 92 of 2020, Sch 5 item 1, effective Sch 1 (items 17, 24): 15 Oct 2020 (s 2(1) item 4) Sch 2 (items 4–15), Sch 3 (items 17–24, 40) and Sch 5 (items 1–10, 56): 1 Jan 2021 (s 2(1) item 7) | Amended by No 9 of 2025, Sch 1 item 22 | Sch 2 item 2, effective Sch 1 (items 8–13) and Sch 2 (items 2–11): 1 Apr 2025 (s 2(1) items 3, 5) Sch 1 (items 22–31): 1 Jan 2026 (s 2(1) item 4)

s 177B — Operation of Part

(1) Nothing in the following limit the operation of this Part: (a) the provisions of this Act (other than this Part); (b) the International Tax Agreements Act 1953 . (2) This Part does not affect the operation of Division 393 of the Income Tax Assessment Act 1997 (Farm management deposits). (3) Where a provision of this Act other than this Part is expressed to have effect where a deduction would be allowable to a taxpayer but for or apart from a provision or provisions of this Act, the reference to that provision or to those provisions, as the case may be, shall be read as including a reference to subsection 177F(1). (4) Where a provision of this Act other than this Part is expressed to have effect where a deduction would otherwise be allowable to a taxpayer, that provision shall be deemed to be expressed to have effect where a deduction would, but for subsection 177F(1), be otherwise allowable to the taxpayer.

Amendment history: Inserted by No 110 of 1981, effective s 4–11: 24 June 1981 (s 2) | Amended by No 37 of 1990, effective s 14: 18 Feb 1991 (s 2) | Amended by No 135 of 1990, item 18, effective s 7–33, 38(1), (2), 39(1) and Sch (Pt 1): 28 Dec 1990 (s 2(1)) s 38(3), 39(2) and Sch (Part 3): 1 July 1993 (s 2(3)) s. 38(4), 39(3) and Sch (Part 4): 8 Jan 1991 (s 2(4)) | Amended by No 208 of 1992, item 11, effective s 4–6, 19–33 and 47–61: 1 July 1994 (s 2(2)(a)) s 7–18 and 34–46: 22 Dec 1992 (s 2(1)) | Amended by No 22 of 1995, item 23, effective Sch (items 16–35): 29 Mar 1995 (s 2) | Amended by No 85 of 1998, Sch 2G item 14, effective Sch 1: 2 Jan 1999 (s 2(2)) | Amended by No 25 of 2000, Sch 2 item 35, effective s 4–6 and Sch 2 (items 34, 35): 1:23am (Australian Central Standard Time) 26 Oct 1999 (s 2(2), 4) | Amended by No 10 of 2003, Sch 1 item 52, effective s 4: 2 Apr 2003 (s 2(1) item 1) Sch 1 (items 34–52, 81): 20 May 2002 (s 2(1) item 2) | Amended by No 101 of 2006, Sch 2 item 413, effective Sch 1 (items 1, 5–199), Sch 2 (items 118–565, 1017, 1023–1037) and Sch 6 (items 1–4, 6–15): 14 Sept 2006 (s 2(1) items 2, 4) Sch 3 (items 1–10) and Sch 4 (items 1–11): 1 Jan 2008 (s 2(1) item 3) | Amended by No 79 of 2010, effective Sch 1 (items 1, 2, 17–26, 53, 57, 66), Sch 3 (item 1), Sch 4 (items 1, 9–37, 51) and Sch 5 (items 1, 3–5, 13): 1 July 2010 (s 2(1) items 2, 4) Sch 2 (items 1, 10–15): 1 July 2010 (s 2(1) item 3) | Amended by No 59 of 2019, Sch 2 item 7 | Sch 2 item 8, effective Sch 2 (items 4–8): 30 Aug 2019 (s 2(1) item 2)

s 177C — Tax benefits

(1) Subject to this section, a reference in this Part to the obtaining by a taxpayer of a tax benefit in connection with a scheme shall be read as a reference to: (a) an amount not being included in the assessable income of the taxpayer of a year of income where that amount would have been included, or might reasonably be expected to have been included, in the assessable income of the taxpayer of that year of income if the scheme had not been entered into or carried out; or (b) a deduction being allowable to the taxpayer in relation to a year of income where the whole or a part of that deduction would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; or (ba) a capital loss being incurred by the taxpayer during a year of income where the whole or a part of that capital loss would not have been, or might reasonably be expected not to have been, incurred by the taxpayer during the year of income if the scheme had not been entered into or carried out; or (baa) a loss carry back tax offset being allowable to the taxpayer where the whole or a part of that loss carry back tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or (bb) a foreign income tax offset being allowable to the taxpayer where the whole or a part of that foreign income tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or (bbaa) an innovation tax offset being allowable to the taxpayer where the whole or a part of that innovation tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or (bba) an exploration credit being issued to the taxpayer where the whole or a part of that exploration credit would not have been issued, or might reasonably be expected not to have been issued, to the taxpayer if the scheme had not been entered into or carried out; or (bc) the taxpayer not being liable to pay withholding tax on an amount where the taxpayer either would have, or might reasonably be expected to have, been liable to pay withholding tax on the amount if the scheme had not been entered into or carried out; or (bd) a refundable R&D tax offset, or a non ‑ refundable R&D tax offset, being allowable to the taxpayer in relation to a year of income where the whole or a part of the offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; or (be) a CMPTI tax offset being allowable to the taxpayer in relation to a year of income where the whole or a part of the offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; or (bf) a hydrogen production tax offset being allowable to the taxpayer in relation to a year of income where the whole or a part of the offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; and, for the purposes of this Part, the amount of the tax benefit shall be taken to be: (c) in a case to which paragraph (a) applies—the amount referred to in that paragraph; and (d) in a case to which paragraph (b) applies—the amount of the whole of the deduction or of the part of the deduction, as the case may be, referred to in that paragraph; and (e) in a case to which paragraph (ba) applies—the amount of the whole of the capital loss or of the part of the capital loss, as the case may be, referred to in that paragraph; and (ea) in a case where paragraph (baa) applies—the amount of the whole of the loss carry back tax offset or of the part of the loss carry back tax offset, as the case may be, referred to in that paragraph; and (f) in a case where paragraph (bb) applies—the amount of the whole of the foreign income tax offset or of the part of the foreign income tax offset, as the case may be, referred to in that paragraph; and (faa) in a case where paragraph (bbaa) applies—the amount of the whole of the innovation tax offset or of the part of the innovation tax offset, as the case may be, referred to in that paragraph; and (fa) in a case where paragraph (bba) applies—the amount of the whole of the exploration credit or of the part of the exploration credit, as the case may be, referred to in that paragraph; and (g) in a case to which paragraph (bc) applies—the amount referred to in that paragraph; and (h) in a case to which paragraph (bd) applies—the amount of the whole of the offset or of the part of the offset, as the case may be, referred to in that paragraph; and (i) in a case to which paragraph (be) applies—the amount of the whole of the CMPTI tax offset or of the part of the CMPTI tax offset, as the case may be, referred to in that paragraph; or (j) in a case to which paragraph (bf) applies—the amount of the whole of the hydrogen production tax offset or of the part of the hydrogen production tax offset, as the case may be, referred to in that paragraph. (2) A reference in this Part to the obtaining by a taxpayer of a tax benefit in connection with a scheme shall be read as not including a reference to: (a) the assessable income of the taxpayer of a year of income not including an amount that would have been included, or might reasonably be expected to have been included, in the assessable income of the taxpayer of that year of income if the scheme had not been entered into or carried out where: (i) the non ‑ inclusion of the amount in the assessable income of the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option (expressly provided for by this Act or the Income Tax Assessment Act 1997 ) by any person, except one under Subdivision 126 ‑ B, 170 ‑ B or 960 ‑ D of the Income Tax Assessment Act 1997 ; and (ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or (b) a deduction being allowable to the taxpayer in relation to a year of income the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out where: (i) the allowance of the deduction to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act or the Income Tax Assessment Act 1997 , except one under Subdivision 960 ‑ D of the Income Tax Assessment Act 1997 ; and (ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or (c) a capital loss being incurred by the taxpayer during a year of income the whole or part of which would not have been, or might reasonably be expected not to have been, incurred by the taxpayer during the year of income if the scheme had not been entered into or carried out where: (i) the incurring of the capital loss by the taxpayer is attributable to the making of a declaration, agreement, choice, election or selection, the giving of a notice or the exercise of an option (expressly provided for by this Act or the Income Tax Assessment Act 1997 ) by any person, except one under Subdivision 126 ‑ B, 170 ‑ B or 960 ‑ D of the Income Tax Assessment Act 1997 ; and (ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, notice or option to be made, given or exercised, as the case may be; or (ca) a loss carry back tax offset being allowable to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer if the scheme had not been entered into or carried out, where: (i) the allowance of the loss carry back tax offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and (ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or (d) a foreign income tax offset being allowable to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer if the scheme had not been entered into or carried out, where: (i) the allowance of the foreign income tax offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and (ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or (e) an innovation tax offset being allowable to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer if the scheme had not been entered into or carried out, where: (i) the allowance of the innovation tax offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and (ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or (f) a refundable R&D tax offset, or a non ‑ refundable R&D tax offset, being allowable to the taxpayer in relation to a year of income the whole or a part of which offset would not have been, or might reasonably be expected not to have been, allowable to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out, where: (i) the allowance of the offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and (ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or (g) a CMPTI tax offset being allowable to the taxpayer in relation to a year of income the whole or a part of which offset would not have been, or might reasonably be expected not to have been, allowable to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out, where: (i) the allowance of the offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and (ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or (h) a hydrogen production tax offset being allowable to the taxpayer in relation to a year of income the whole or a part of which offset would not have been, or might reasonably be expected not to have been, allowable to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out, where: (i) the allowance of the offset to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and (ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be. (2A) A reference in this Part to the obtaining by a taxpayer of a tax benefit in connection with a scheme is to be read as not including a reference to: (a) the assessable income of the taxpayer of a year of income not including an amount that would have been included, or might reasonably be expected to have been included, in the assessable income of the taxpayer of that year of income if the scheme had not been entered into or carried out where: (i) the non ‑ inclusion of the amount in the assessable income of the taxpayer is attributable to the making of a choice under Subdivision 126 ‑ B of the Income Tax Assessment Act 1997 or an agreement under Subdivision 170 ‑ B of that Act; and (ii) the scheme consisted solely of the making of the agreement or election; or (b) a capital loss being incurred by the taxpayer during a year of income the whole or part of which would not have been, or might reasonably be expected not to have been, incurred by the taxpayer during the year of income if the scheme had not been entered into or carried out where: (i) the incurring of the capital loss by the taxpayer is attributable to the making of a choice under Subdivision 126 ‑ B of the Income Tax Assessment Act 1997 or an agreement under Subdivision 170 ‑ B of that Act; and (ii) the scheme consisted solely of the making of the agreement or election; or (c) an exploration credit being issued to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, issued to the taxpayer if the scheme had not been entered into or carried out, where: (i) the issuing of the exploration credit to the taxpayer is attributable to the making of a choice under Division 418 of the Income Tax Assessment Act 1997 ; and (ii) the scheme consisted solely of the making of the choice. (3) For the purposes of subparagraph (2)(a)(i), (b)(i), (c)(i), (ca)(i), (d)(i), (e)(i), (f)(i), (g)(i) or (h)(i) or (2A)(a)(i), (b)(i) or (c)(i): (a) the non ‑ inclusion of an amount in the assessable income of a taxpayer; or (b) the allowance of a deduction to a taxpayer; or (c) the incurring of a capital loss by a taxpayer; or (ca) the allowance of a foreign income tax offset to a taxpayer; or (caa) the allowance of an innovation tax offset to a taxpayer; or (cab) the allowance of a loss carry back tax offset to a taxpayer; or (cb) the issuing of an exploration credit to a taxpayer; or (cc) the allowance of a refundable R&D tax offset, or a non ‑ refundable R&D tax offset, to a taxpayer; or (cd) the allowance of a CMPTI tax offset to a taxpayer; or (ce) the allowance of a hydrogen production tax offset to a taxpayer; is taken to be attributable to the making of a declaration, election, agreement or selection, the giving of a notice or the exercise of an option where, if the declaration, election, agreement, selection, notice or option had not been made, given or exercised, as the case may be: (d) the amount would have been included in that assessable income; or (e) the deduction would not have been allowable; or (f) the capital loss would not have been incurred; or (fa) the loss carry back tax offset would not have been allowable; or (g) the foreign income tax offset would not have been allowable; or (ga) the innovation tax offset would not have been allowable; or (h) the exploration credit would not have been issued; or (i) the refundable R&D tax offset, or non ‑ refundable R&D tax offset, would not have been allowable; or (j) the CMPTI tax offset would not have been allowable; or (k) the hydrogen production tax offset would not have been allowable. (4) To avoid doubt, paragraph (1)(a) applies to a scheme if: (a) an amount of income is not included in the assessable income of the taxpayer of a year of income; and (b) an amount would have been included, or might reasonably be expected to have been included, in the assessable income if the scheme had not been entered into or carried out; and (c) instead, the taxpayer or any other taxpayer makes a discount capital gain (within the meaning of the Income Tax Assessment Act 1997 ) for that or any other year of income. (5) Subsection (4) does not limit the generality of any other provision of this Part.

Amendment history: Inserted by No 110 of 1981, effective s 4–11: 24 June 1981 (s 2) | Amended by No 135 of 1990, item 19, effective s 7–33, 38(1), (2), 39(1) and Sch (Pt 1): 28 Dec 1990 (s 2(1)) s 38(3), 39(2) and Sch (Part 3): 1 July 1993 (s 2(3)) s. 38(4), 39(3) and Sch (Part 4): 8 Jan 1991 (s 2(4)) | Amended by No 208 of 1992, item 12, effective s 4–6, 19–33 and 47–61: 1 July 1994 (s 2(2)(a)) s 7–18 and 34–46: 22 Dec 1992 (s 2(1)) | Amended by No 16 of 1998, effective s 4, Sch 1 (items 1–58), Sch 6 (items 1–17) and Sch 10 (items 20–57): 16 Apr 1998 (s 2(1), (2)) | Amended by No 41 of 1998, Sch 1 item 18, effective s 4, Sch 1 (items 4–16, 18–26), Sch 2 (items 1–4), Sch 3 (items 1–3, 7(1)), Sch 4 (items 4, 5), Sch 5 (items 16, 18) and Sch 6 (items 1, 2, 4, 5, 7–13, 15–18, 27): 4 June 1998 (s 2(1)) Sch 1 (item 17): 9 Apr 1999 (s 2(2)) Sch 5 (items 17, 19): 12 Dec 1995 (s 2(5)) Sch 6 (item 3): 16 Dec 1985 (s 2(6)) Sch 6 (item 6): 1 Jan 1993 (s 2(7)) Sch 6 (item 14): never commenced (s 2(9)) Sch 6 (item 16): 1 July 1998 (s 2(10)) | Amended by No 46 of 1998, effective s 4, Sch 2 (items 49–522), Sch 3 (items 13–20), Sch 4 (items 12–27), Sch 5 (items 6–10), Sch 6 (items 8–30), Sch 7 (items 12–19), Sch 8 (items 2–9) and Sch 9 (items 7, 8): 22 June 1998 (s 2(1)–(4)) | Amended by No 11 of 1999, item 2 | item 3 | item 4 | item 5 | item 6 | item 7 | item 8 | item 9, effective Sch 1 (items 12–276, 398–404): 1 July 1999 (s 2(3), (4)) Sch 2: 9 Apr 1999 (s 2(2)) Sch 3 (items 1, 2): 31 Mar 1999 (s 2(1)) | Amended by No 16 of 1999, Sch 1 item 3 | Sch 1 item 4 | Sch 1 item 6 | Sch 1 item 7 | Sch 1 item 8, effective s 4, Sch 1, Sch 3 (items 8–10, 12(3)), Sch 5, 6, Sch 7 (items 1–8) and Sch 8–11: 9 Apr 1999 (s 2(1)) | Amended by No 169 of 1999, Sch 10 item 21, effective Sch 2 (items 4, 5), Sch 3 (items 5–7), Sch 4 (items 16–19), Sch 7 (items 1–5, 10, 12) and Sch 9 (items 16–22): 10 Dec 1999 (s 2(1), (3)) Sch 5 (item 15): 22 Feb 1999 (s 2(2)) Sch 7 (items 6–9): 22 Sept 2002 (s 2(4)) Sch 9 (item 15): 22 Dec 1999 (s 2(5)) | Amended by No 173 of 2000, effective s 4 and Sch 4 (items 1–5, 65(1), (2)): 21 Dec 2000 (s 2(1)) | Amended by No 133 of 2003, effective Sch 1 (items 1–3, 17(1)) and Sch 4 (items 21–37, 77, 78): 17 Dec 2003 (s 2) | Amended by No 101 of 2006, effective Sch 1 (items 1, 5–199), Sch 2 (items 118–565, 1017, 1023–1037) and Sch 6 (items 1–4, 6–15): 14 Sept 2006 (s 2(1) items 2, 4) Sch 3 (items 1–10) and Sch 4 (items 1–11): 1 Jan 2008 (s 2(1) item 3) | Amended by No 143 of 2007, Sch 1 item 72, effective Sch 1 (items 2, 3, 18–127, 222, 223, 224(1), (2), 225, 226), Sch 4 (items 1–46, 51, 52), Sch 7 (items 9–17, 104(2)) and Sch 8: 24 Sept 2007 (s 2(1) items 2, 4, 11, 12) | Amended by No 88 of 2013, Sch 5 item 29 | Sch 5 item 30 | Sch 5 item 31 | Sch 5 item 32 | Sch 5 item 33 | Sch 5 item 34, effective s 4 and Sch 7 (item 199): 28 June 2013 (s 2(1) items 1, 21) Sch 5 (items 11–20, 24): 1 July 2013 (s 2(1) item 10) Sch 5 (items 28–34, 36–38) and Sch 6 (items 1, 2, 49): 29 June 2013 (s 2(1) items 11, 13) Sch 5 (item 35): 29 June 2013 (s 2(1) item 12) | Amended by No 101 of 2013, Sch 1 item 2 | Sch 1 item 3 | Sch 1 item 4 | Sch 1 item 5 | Sch 1 item 8 | Sch 1 item 9, effective Sch 1 (items 1–8, 10) and Sch 2 (items 1, 8–19, 50): 29 June 2013 (s 2(1) items 2, 3) | Amended by No 96 of 2014, Sch 2 item 5 | Sch 2 item 6 | Sch 2 item 7 | Sch 2 item 8 | Sch 2 item 9 | Sch 2 item 10, effective Sch 2 (items 3–13, 42, 43): 30 Sept 2014 (s 2(1) item 2) | Amended by No 21 of 2015, Sch 6 item 4 | Sch 6 item 5 | Sch 6 item 6 | Sch 6 item 7 | Sch 6 item 8 | Sch 6 item 9 | Sch 6 item 10 | Sch 6 item 41 | Sch 6 item 42 | Sch 6 item 43 | Sch 6 item 44 | Sch 6 item 45, effective Sch 2 (items 36, 44–46): 1 May 2015 (s 2(1) item 3) Sch 6 (items 3–15, 73): 19 Mar 2015 (s 2(1) item 7) Sch 6 (items 38–50, 74–79): never commenced (s 2(1) item 12) Sch 7 (items 9–12): 20 Mar 2015 (s 2(1) item 15) | Amended by No 54 of 2016, Sch 1 item 3 | Sch 1 item 4 | Sch 1 item 5 | Sch 1 item 6 | Sch 1 item 7 | Sch 1 item 8, effective Sch 1 (items 2–11, 19): 1 July 2016 (s 2(1) item 2) | Amended by No 8 of 2019, effective Sch 6 (items 1, 2): 1 July 2018 (s 2(1) item 6) Sch 7 (item 1) and Sch 8 (items 12, 27–34): 1 Apr 2019 (s 2(1) items 7, 11) | Amended by No 92 of 2020, Sch 2 item 5 | Sch 2 item 6 | Sch 2 item 7 | Sch 2 item 8 | Sch 2 item 9 | Sch 2 item 10 | Sch 5 item 2 | Sch 5 item 3 | Sch 5 item 4 | Sch 5 item 5 | Sch 5 item 6 | Sch 5 item 7, effective Sch 1 (items 17, 24): 15 Oct 2020 (s 2(1) item 4) Sch 2 (items 4–15), Sch 3 (items 17–24, 40) and Sch 5 (items 1–10, 56): 1 Jan 2021 (s 2(1) item 7) | Amended by No 9 of 2025, Sch 1 item 23 | Sch 1 item 24 | Sch 1 item 25 | Sch 1 item 26 | Sch 1 item 27 | Sch 1 item 28 | Sch 2 item 3 | Sch 2 item 4 | Sch 2 item 5 | Sch 2 item 6 | Sch 2 item 7 | Sch 2 item 8, effective Sch 1 (items 8–13) and Sch 2 (items 2–11): 1 Apr 2025 (s 2(1) items 3, 5) Sch 1 (items 22–31): 1 Jan 2026 (s 2(1) item 4)

s 177CB — The bases for identifying tax benefits

(1) This section applies to deciding, under section 177C, whether any of the following ( tax effects ) would have occurred, or might reasonably be expected to have occurred, if a scheme had not been entered into or carried out: (a) an amount being included in the assessable income of the taxpayer; (b) the whole or a part of a deduction not being allowable to the taxpayer; (c) the whole or a part of a capital loss not being incurred by the taxpayer; (ca) the whole or a part of a loss carry back tax offset not being allowable to the taxpayer; (d) the whole or a part of a foreign income tax offset not being allowable to the taxpayer; (daa) the whole or a part of an innovation tax offset not being allowable to the taxpayer; (da) the whole or a part of an exploration credit not being issued to the taxpayer; (e) the taxpayer being liable to pay withholding tax on an amount; (f) the whole or a part of a refundable R&D tax offset, or of a non ‑ refundable tax offset, not being allowable to the taxpayer; (g) the whole or a part of a CMPTI tax offset not being allowable to the taxpayer; (h) the whole or a part of a hydrogen production tax offset not being allowable to the taxpayer. (2) A decision that a tax effect would have occurred if the scheme had not been entered into or carried out must be based on a postulate that comprises only the events or circumstances that actually happened or existed (other than those that form part of the scheme). (3) A decision that a tax effect might reasonably be expected to have occurred if the scheme had not been entered into or carried out must be based on a postulate that is a reasonable alternative to entering into or carrying out the scheme. (4) In determining for the purposes of subsection (3) whether a postulate is such a reasonable alternative: (a) have particular regard to: (i) the substance of the scheme; and (ii) any result or consequence for the taxpayer that is or would be achieved by the scheme (other than a result in relation to the operation of this Act); but (b) disregard any result in relation to the operation of this Act that would be achieved by the postulate for any person (whether or not a party to the scheme). (5) Subsection (4) applies in relation to the scheme as if references in that subsection to the operation of this Act included references to the operation of any foreign law relating to taxation: (a) if this Part applies to the scheme because of section 177DA or 177J; or (b) for the purposes of determining whether this Part applies to the scheme because of section 177DA or 177J.

Amendment history: Amended by No 88 of 2013, Sch 5 item 35, effective s 4 and Sch 7 (item 199): 28 June 2013 (s 2(1) items 1, 21) Sch 5 (items 11–20, 24): 1 July 2013 (s 2(1) item 10) Sch 5 (items 28–34, 36–38) and Sch 6 (items 1, 2, 49): 29 June 2013 (s 2(1) items 11, 13) Sch 5 (item 35): 29 June 2013 (s 2(1) item 12) | Inserted by No 101 of 2013, effective Sch 1 (items 1–8, 10) and Sch 2 (items 1, 8–19, 50): 29 June 2013 (s 2(1) items 2, 3) | Amended by No 96 of 2014, Sch 2 item 11, effective Sch 2 (items 3–13, 42, 43): 30 Sept 2014 (s 2(1) item 2) | Amended by No 21 of 2015, Sch 6 item 11, effective Sch 2 (items 36, 44–46): 1 May 2015 (s 2(1) item 3) Sch 6 (items 3–15, 73): 19 Mar 2015 (s 2(1) item 7) Sch 6 (items 38–50, 74–79): never commenced (s 2(1) item 12) Sch 7 (items 9–12): 20 Mar 2015 (s 2(1) item 15) | Amended by No 170 of 2015, Sch 2 item 3, effective Sch 2 (items 1–4, 7): 11 Dec 2015 (s 2(1) item 1) | Amended by No 54 of 2016, Sch 1 item 9, effective Sch 1 (items 2–11, 19): 1 July 2016 (s 2(1) item 2) | Amended by No 27 of 2017, Sch 1 item 9 | Sch 1 item 10, effective Sch 1 (items 2–6, 8–13, 52): 1 July 2017 (s 2(1) items 2, 4) Sch 1 (item 7): never commenced (s 2(1) item 3) | Amended by No 92 of 2020, Sch 2 item 11 | Sch 5 item 8, effective Sch 1 (items 17, 24): 15 Oct 2020 (s 2(1) item 4) Sch 2 (items 4–15), Sch 3 (items 17–24, 40) and Sch 5 (items 1–10, 56): 1 Jan 2021 (s 2(1) item 7) | Amended by No 9 of 2025, Sch 1 item 29 | Sch 2 item 9, effective Sch 1 (items 8–13) and Sch 2 (items 2–11): 1 Apr 2025 (s 2(1) items 3, 5) Sch 1 (items 22–31): 1 Jan 2026 (s 2(1) item 4)

s 177D — Schemes to which this Part applies

Scheme for purpose of obtaining a tax benefit (1) This Part applies to a scheme if it would be concluded (having regard to the matters in subsection (2)) that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for the purpose of: (a) enabling a taxpayer (a relevant taxpayer ) to obtain a tax benefit in connection with the scheme; or (b) enabling the relevant taxpayer and another taxpayer (or other taxpayers) each to obtain a tax benefit in connection with the scheme; whether or not that person who entered into or carried out the scheme or any part of the scheme is the relevant taxpayer or is the other taxpayer or one of the other taxpayers. Have regard to certain matters (2) For the purpose of subsection (1), have regard to the following matters: (a) the manner in which the scheme was entered into or carried out; (b) the form and substance of the scheme; (c) the time at which the scheme was entered into and the length of the period during which the scheme was carried out; (d) the result in relation to the operation of this Act that, but for this Part, would be achieved by the scheme; (e) any change in the financial position of the relevant taxpayer that has resulted, will result, or may reasonably be expected to result, from the scheme; (f) any change in the financial position of any person who has, or has had, any connection (whether of a business, family or other nature) with the relevant taxpayer, being a change that has resulted, will result or may reasonably be expected to result, from the scheme; (g) any other consequence for the relevant taxpayer, or for any person referred to in paragraph (f), of the scheme having been entered into or carried out; (h) the nature of any connection (whether of a business, family or other nature) between the relevant taxpayer and any person referred to in paragraph (f). Note: Section 960 ‑ 255 of the Income Tax Assessment Act 1997 may be relevant to determining family relationships for the purposes of paragraphs (f) and (h). Tax benefit (3) Despite subsection (1), this Part applies to the scheme only if the relevant taxpayer has obtained, or would but for section 177F obtain, a tax benefit in connection with the scheme. When schemes entered into etc. (4) Despite subsection (1), this Part applies to the scheme only if: (a) the scheme has been or is entered into after 27 May 1981; or (b) the scheme has been or is carried out or commenced to be carried out after that day (and is not a scheme that was entered into on or before that day). Schemes outside Australia (5) This section applies whether or not the scheme has been or is entered into or carried out in Australia or outside Australia or partly in Australia and partly outside Australia.

Amendment history: Inserted by No 110 of 1981, effective s 4–11: 24 June 1981 (s 2) | Amended by No 144 of 2008, Sch 14 item 32, effective Sch 14 (items 7–58): 10 Dec 2008 (s 2(1) item 36) | Repealed and substituted by No 101 of 2013, Sch 1 item 1 | Sch 1 item 6, effective Sch 1 (items 1–8, 10) and Sch 2 (items 1, 8–19, 50): 29 June 2013 (s 2(1) items 2, 3)

s 177DA — Schemes that limit a taxable presence in Australia

Scheme for a purpose including obtaining a tax benefit etc. (1) Without limiting section 177D, this Part also applies to a scheme if: (a) under, or in connection with, the scheme: (i) a foreign entity makes a supply to an Australian customer of the foreign entity; and (ii) activities are undertaken in Australia directly in connection with the supply; and (iii) some or all of those activities are undertaken by an Australian entity who, or are undertaken at or through an Australian permanent establishment of an entity who, is an associate of or is commercially dependent on the foreign entity; and (iv) the foreign entity derives ordinary income, or statutory income, from the supply; and (v) some or all of that income is not attributable to an Australian permanent establishment of the foreign entity; and (b) it would be concluded (having regard to the matters in subsection (2)) that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a principal purpose of, or for more than one principal purpose that includes a purpose of: (i) enabling a taxpayer (a relevant taxpayer ) to obtain a tax benefit, or both to obtain a tax benefit and to reduce one or more of the relevant taxpayer’s liabilities to tax under a foreign law, in connection with the scheme; or (ii) enabling the relevant taxpayer and another taxpayer (or other taxpayers) each to obtain a tax benefit, or both to obtain a tax benefit and to reduce one or more of their liabilities to tax under a foreign law, in connection with the scheme; whether or not that person who entered into or carried out the scheme or any part of the scheme is the relevant taxpayer or is the other taxpayer or one of the other taxpayers; and (c) the foreign entity is a significant global entity for a year of income in which the relevant taxpayer, or one or more other taxpayers, would (but for this Part): (i) obtain a tax benefit; or (ii) reduce one or more of their liabilities to tax under a foreign law; in connection with the scheme. Have regard to certain matters (2) For the purposes of paragraph (1)(b), have regard to the following matters: (a) the matters in subsection 177D(2); (b) the extent to which the activities that contribute to bringing about the contract for the supply are performed, and are able to be performed, by: (i) the foreign entity; or (ii) another entity referred to in subparagraph (1)(a)(iii); or (iii) any other entities; (c) the result, in relation to the operation of any foreign law relating to taxation, that (but for this Part) would be achieved by the scheme. Deferral of foreign tax liabilities (3) For the purposes of paragraph (1)(b), a deferral of a taxpayer’s liabilities to tax under a foreign law is taken to be a reduction of those liabilities, unless there are reasonable commercial grounds for the deferral. Tax benefit (4) Despite subsection (1), this Part applies to the scheme because of this section only if the relevant taxpayer has obtained, or would but for section 177F obtain, a tax benefit in connection with the scheme. Commissioner not required to enquire into foreign tax matters (5) The Commissioner is required to have regard to a matter referred to in paragraph (2)(c) only so far as information relevant to that matter is available to the Commissioner, and is not required to acquire further information in order to have regard to that matter. Schemes outside Australia (6) This section applies whether or not the scheme has been or is entered into or carried out in Australia or outside Australia or partly in Australia and partly outside Australia. Income from supply by trust estate or partnership (7) Subsection (8) applies if: (a) both of the following conditions are satisfied: (i) a trust estate or partnership makes a supply to an entity; (ii) that entity would be an Australian customer of the trust estate or partnership if the trust estate or partnership were a foreign entity; and (b) because of the supply, an amount of ordinary income, or statutory income, is included in the assessable income of the trust estate or partnership (as worked out for the purposes of working out its net income for a year of income); and (c) the trust estate or partnership has a foreign entity participant at any time in that year of income; and (d) any of the following conditions are satisfied at the time the supply is made: (i) the trust estate or partnership is connected with (within the meaning of the Income Tax Assessment Act 1997 ) a foreign entity; (ii) the trust estate or partnership would be an affiliate (within the meaning of that Act) of a foreign entity if the trust estate or partnership were an individual or a company; (iii) the trust estate or partnership and a foreign entity are members of the same global group. (8) For the purposes of this section: (a) treat the foreign entity mentioned in paragraph (7)(d) as having made the supply; and (b) treat the entity mentioned in subparagraph (7)(a)(ii) as being an Australian customer of the foreign entity; and (c) treat the foreign entity as having derived the ordinary income, or statutory income, from the supply.

Amendment history: Inserted by No 170 of 2015, Sch 1 item 960 | Sch 2 item 2 | Sch 2 item 3 | Sch 2 item 5, effective Sch 2 (items 1–4, 7): 11 Dec 2015 (s 2(1) item 1) | Amended by No 124 of 2018, Sch 1 item 2, effective Sch 1: 1 Jan 2019 (s 2(1) item 1)

s 177E — Stripping of company profits

(1) Where: (a) as a result of a scheme that is, in relation to a company: (i) a scheme by way of or in the nature of dividend stripping; or (ii) a scheme having substantially the effect of a scheme by way of or in the nature of a dividend stripping; any property of the company is disposed of; (b) in the opinion of the Commissioner, the disposal of that property represents, in whole or in part, a distribution (whether to a shareholder or another person) of profits of the company (whether of the accounting period in which the disposal occurred or of any earlier or later accounting period); (c) if, immediately before the scheme was entered into, the company had paid a dividend out of profits of an amount equal to the amount determined by the Commissioner to be the amount of profits the distribution of which is, in his or her opinion, represented by the disposal of the property referred to in paragraph (a), an amount (in this subsection referred to as the notional amount ) would have been included, or might reasonably be expected to have been included, by reason of the payment of that dividend, in the assessable income of a taxpayer of a year of income; and (d) the scheme has been or is entered into after 27 May 1981, whether in Australia or outside Australia; the following provisions have effect: (e) the scheme shall be taken to be a scheme to which this Part applies; (f) for the purposes of section 177F, the taxpayer shall be taken to have obtained a tax benefit in connection with the scheme that is referable to the notional amount not being included in the assessable income of the taxpayer of the year of income; and (g) the amount of that tax benefit shall be taken to be the notional amount. (2) Without limiting the generality of subsection (1), a reference in that subsection to the disposal of property of a company shall be read as including a reference to: (a) the payment of a dividend by the company; (b) the making of a loan by the company (whether or not it is intended or likely that the loan will be repaid); (c) a bailment of property by the company; and (d) any transaction having the effect, directly or indirectly, of diminishing the value of any property of the company. (2A) This section: (a) applies to a non ‑ share equity interest in the same way as it applies to a share; and (b) applies to an equity holder in the same way as it applies to a shareholder; and (c) applies to a non ‑ share dividend in the same way as it applies to a dividend. (3) In this section, property includes a chose in action and also includes any estate, interest, right or power, whether at law or in equity, in or over property.

Amendment history: Inserted by No 110 of 1981, effective s 4–11: 24 June 1981 (s 2) | Amended by No 163 of 2001, Sch 1 item 103, effective Sch 1 (items 35–116, 118(1), (2), (6)–(13)): 1 July 2001 (s 2) | Amended by No 41 of 2011, Sch 5 item 325, effective Sch 5 (items 15–17): 28 June 2011 (s 2(1) item 11) Sch 5 (items 57–73, 79, 176–367, 376–382, 412, 413): 27 June 2011 (s 2(1) items 17, 23)

s 177EA — Creation of franking debit or cancellation of franking credits

(1) In this section, unless the contrary intention appears: relevant circumstances has a meaning affected by subsection (17). relevant taxpayer has the meaning given by subsection (3). scheme for a disposition , in relation to membership interests or an interest in membership interests, has a meaning affected by subsection (14). (2) An expression used in this section that is defined in the Income Tax Assessment Act 1997 has the same meaning as in that Act, except to the extent that its meaning is extended by subsection (16), (18) or (19), or affected by subsection (15). Application of section (3) This section applies if: (a) there is a scheme for a disposition of membership interests, or an interest in membership interests, in a corporate tax entity; and (b) either: (i) a frankable distribution has been paid, or is payable or expected to be payable, to a person in respect of the membership interests; or (ii) a frankable distribution has flowed indirectly, or flows indirectly or is expected to flow indirectly, to a person in respect of the interest in membership interests, as the case may be; and (c) the distribution was, or is expected to be, a franked distribution or a distribution franked with an exempting credit; and (d) except for this section, the person (the relevant taxpayer ) would receive, or could reasonably be expected to receive, imputation benefits as a result of the distribution; and (e) having regard to the relevant circumstances of the scheme, it would be concluded that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a purpose (whether or not the dominant purpose but not including an incidental purpose) of enabling the relevant taxpayer to obtain an imputation benefit. Bare acquisition of membership interests or interest in membership interests (4) It is not to be concluded for the purposes of paragraph (3)(e) that a person entered into or carried out a scheme for a purpose mentioned in that paragraph merely because the person acquired membership interests, or an interest in membership interests, in the entity. Commissioner to determine franking debit or deny franking credit (5) The Commissioner may make, in writing, either of the following determinations: (a) if the corporate tax entity is a party to the scheme, a determination that a franking debit or exempting debit of the entity arises in respect of each distribution made to the relevant taxpayer or that flows indirectly to the relevant taxpayer; (b) a determination that no imputation benefit is to arise in respect of a distribution or a specified part of a distribution that is made, or that flows indirectly, to the relevant taxpayer. A determination does not form part of an assessment. Notice of determination (6) If the Commissioner makes a determination under subsection (5), the Commissioner must: (a) in respect of a determination made under paragraph (5)(a)—serve notice in writing of the determination on the corporate tax entity; or (b) in respect of a determination made under paragraph (5)(b)—serve notice in writing of the determination on the relevant taxpayer. Publication of determination in relation to listed public company denying imputation benefit (7) If the Commissioner makes a determination under paragraph (5)(b), in respect of a distribution made by a listed public company, the Commissioner is taken to have served notice in writing of the determination on the relevant taxpayer if the Commissioner causes the notice to be published in a manner that results in the notice being accessible to the public and reasonably prominent. The notice is taken to have been served on the day on which the publication takes place. Objections (9) If a taxpayer to whom a determination relates is dissatisfied with the determination, the taxpayer may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 . Effect of determination of franking debit or exempting debit (10) If the Commissioner makes a determination under paragraph (5)(a): (a) on the day on which notice in writing of the determination is served on the entity, a franking debit or exempting debit of the corporate tax entity arises in respect of the distribution; and (b) the amount of the franking debit or exempting debit is such amount as is stated in the Commissioner’s determination, being an amount that: (i) the Commissioner considers reasonable in the circumstances; and (ii) does not exceed the amount of the franking debit or exempting debit of the entity arising under item 1 of the table in section 205 ‑ 30 of the Income Tax Assessment 1997 or item 2 of the table in section 208 ‑ 120 of that Act in respect of the distribution. Effect of determination that no imputation benefit is to arise (11) If the Commissioner makes a determination under paragraph (5)(b), the determination has effect according to its terms. Application of section to non ‑ share dividends (12) This section: (a) applies to a non ‑ share equity interest in the same way as it applies to a membership interest; and (b) applies to an equity holder in the same way as it applies to a member; and (c) applies to a non ‑ share dividend in the same way as it applies to a distribution. Meaning of interest in membership interests (13) A person has an interest in membership interests if: (a) the person has any legal or equitable interest in the membership interests; or (b) the person is a partner in a partnership and: (i) the assets of the partnership include, or will include, the membership interests; or (ii) the partnership derives, or will derive, income indirectly through interposed companies, trusts or partnerships, from distributions made on the membership interests; or (c) the person is a beneficiary of a trust (including a potential beneficiary of a discretionary trust) and: (i) the membership interests form, or will form, part of the trust estate; or (ii) the trust derives, or will derive, income indirectly through interposed companies, trusts or partnerships, from distributions made on the membership interests. Meaning of scheme for a disposition (14) A scheme for a disposition of membership interests or an interest in membership interests includes, but is not limited to, a scheme that involves any of the following: (a) issuing the membership interests or creating the interest in membership interests; (b) entering into any contract, arrangement, transaction or dealing that changes or otherwise affects the legal or equitable ownership of the membership interests or interest in membership interests; (c) creating, varying or revoking a trust in relation to the membership interests or interest in membership interests; (d) creating, altering or extinguishing a right, power or liability attaching to, or otherwise relating to, the membership interests or interest in membership interests; (e) substantially altering any of the risks of loss, or opportunities for profit or gain, involved in holding or owning the membership interests or having the interest in membership interests; (f) the membership interests or interest in membership interests beginning to be included, or ceasing to be included, in any of the insurance funds of a life assurance company. (15) In determining whether a distribution flows indirectly to a person, assume that the following provisions of the Income Tax Assessment Act 1997 had not been enacted: (a) section 295 ‑ 385 (about income from assets set aside to meet current pension liabilities), section 295 ‑ 390 (about income from other assets used to meet current pension liabilities) and 295 ‑ 400 (about income of a PST attributable to current pension liabilities); or (b) paragraph 320 ‑ 37(1)(a) (about segregated exempt assets) or paragraph 320 ‑ 37(1)(d) (about income bonds, funeral policies and scholarship plans). When imputation benefit is received (16) A taxpayer to whom a distribution flows indirectly receives an imputation benefit as a result of the distribution if: (a) the taxpayer is entitled to a tax offset under Division 207 of the Income Tax Assessment Act 1997 as a result of the distribution; or (b) where the taxpayer is a corporate tax entity—a franking credit would arise in the franking account of the taxpayer as a result of the distribution. Note: Where the distribution is made directly to the taxpayer, see subsection 204 ‑ 30(6) of the Income Tax Assessment Act 1997 for a definition of imputation benefit . Meaning of relevant circumstances of scheme (17) The relevant circumstances of a scheme include the following: (a) the extent and duration of the risks of loss, and the opportunities for profit or gain, from holding membership interests, or having interests in membership interests, in the corporate tax entity that are respectively borne by or accrue to the parties to the scheme, and whether there has been any change in those risks and opportunities for the relevant taxpayer or any other party to the scheme (for example, a change resulting from the making of any contract, the granting of any option or the entering into of any arrangement with respect to any membership interests, or interests in membership interests, in the corporate tax entity); (b) whether the relevant taxpayer would, in the year of income in which the distribution is made, or if the distribution flows indirectly to the relevant taxpayer, in the year in which the distribution flows indirectly to the relevant taxpayer, derive a greater benefit from franking credits than other entities who hold membership interests, or have interests in membership interests, in the corporate tax entity; (c) whether, apart from the scheme, the corporate tax entity would have retained the franking credits or exempting credits or would have used the franking credits or exempting credits to pay a franked distribution to another entity referred to in paragraph (b); (d) whether, apart from the scheme, a franked distribution would have flowed indirectly to another entity referred to in paragraph (b); (e) if the scheme involves the issue of a non ‑ share equity interest to which section 215 ‑ 10 of the Income Tax Assessment Act 1997 applies—whether the corporate tax entity has issued, or is likely to issue, equity interests in the corporate tax entity: (i) that are similar, from a commercial point of view, to the non ‑ share equity interest; and (ii) distributions in respect of which are frankable; (f) whether any consideration paid or given by or on behalf of, or received by or on behalf of, the relevant taxpayer in connection with the scheme (for example, the amount of any interest on a loan) was calculated by reference to the imputation benefits to be received by the relevant taxpayer; (g) whether a deduction is allowable or a capital loss is incurred in connection with a distribution that is made or that flows indirectly under the scheme; (ga) whether a distribution that is made or that flows indirectly under the scheme to the relevant taxpayer is sourced, directly or indirectly, from unrealised or untaxed profits; (h) whether a distribution that is made or that flows indirectly under the scheme to the relevant taxpayer is equivalent to the receipt by the relevant taxpayer of interest or of an amount in the nature of, or similar to, interest; (i) the period for which the relevant taxpayer held membership interests, or had an interest in membership interests, in the corporate tax entity; (j) any of the matters referred to in subsection 177D(2). Meaning of greater benefit from franking credits (18) The following subsection lists some of the cases in which a taxpayer to whom a distribution flows indirectly receives a greater benefit from franking credits than an entity referred to in paragraph (17)(b). It is not an exhaustive list. (19) A taxpayer to whom a distribution flows indirectly receives a greater benefit from franking credits than an entity referred to in paragraph (17)(b) if any of the following circumstances exist in relation to that entity in the year of income in which the distribution giving rise to the benefit is made, and not in relation to the taxpayer if: (a) the entity is not an Australian resident; or (b) the entity would not be entitled to any tax offset under Division 207 of the Income Tax Assessment Act 1997 because of the distribution; or (c) the amount of income tax that would be payable by the entity because of the distribution is less than the tax offset to which the entity would be entitled; or (d) the entity is a corporate tax entity at the time the distribution is made, but no franking credit arises for the entity as a result of the distribution; or (e) the entity is a corporate tax entity at the time the distribution is made, but cannot use franking credits received on the distribution to frank distributions to its own members because: (i) it is not a franking entity; or (ii) it is unable to make frankable distributions. Note: Where the distribution is made directly to the taxpayer, see subsections 204 ‑ 30(7), (8), (9) and (10) of the Income Tax Assessment Act 1997 for a list of circumstances in which the taxpayer will be treated as deriving a greater benefit from franking credits than another entity.

Amendment history: Inserted by No 47 of 1998, Sch 7 item 10 | Sch 7 item 12 | Sch 7 item 13 | Sch 7 item 14 | Sch 7 item 15 | Sch 7 item 16 | Sch 7 item 17 | Sch 7 item 18 | Sch 7 item 19 | Sch 7 item 20 | Sch 7 item 21 | Sch 7 item 24, effective Sch 3 (items 17–20), Sch 4 (items 1, 6–65, 69), Sch 6, 7, Sch 8 (items 1–10) and Sch 9 (items 7–14, 15(3), 16): 23 June 1998 (s 2(1)) | Amended by No 93 of 1999, Sch 4 item 8 | Sch 5 item 10 | Sch 5 item 44 | Sch 5 item 51 | Sch 5 item 65 | Sch 5 item 66 | Sch 5 item 67 | Sch 5 item 68 | Sch 5 item 70 | Sch 5 item 71 | Sch 5 item 72, effective s 4, Sch 1 (items 1–35, 39–48), Sch 2, Sch 3 (items 26–33), Sch 4 (items 1–23, 25), Sch 5 and 7: 16 July 1999 (s 2(1)) Sch 4 (item 24): 16 Apr 1998 (s 2(2)) | Amended by No 163 of 2001, Sch 1 item 104 | Sch 1 item 105, effective Sch 1 (items 35–116, 118(1), (2), (6)–(13)): 1 July 2001 (s 2) | Repealed and substituted by No 16 of 2003, Sch 27 item 210 | Sch 29 item 9 | Sch 29 item 11, effective s 4: 11 Apr 2003 (s 2(1) item 1) Sch 5 (item 1), Sch 9 (items 3–12), Sch 10 (item 1) and Sch 23 (items 1–9): 24 Oct 2002(s 2(1) items 4–6, 13) Sch 29 (items 1–11, 14): 29 June 2002 (s 2(1) items 20, 22) | Amended by No 66 of 2003, Sch 3 item 46A, effective s 4, Sch 1 and Sch 3 (items 1–46, 47, 48, 140(1), (5), (7)): 30 June 2003 (s 2(1) items 1, 2, 4–6, 14) Sch 3 (item 46A): 29 June 2002 (s 2(1) item 5A) | Amended by No 58 of 2006, Sch 7 item 48, effective s 4 and Sch 7 (items 35–50, 241–256): 22 June 2006 (s 2(1) items 1, 6, 24) Sch 7 (items 173, 175): 30 June 2000 (s 2(1) items 9, 11) Sch 7 (item 174): 24 Oct 2002 (s 2(1) item 10) Sch 7 (items 176, 178): 30 June 2004 (s 2(1) items 12, 14) Sch 7 (item 177): 24 Dec 1992 (s 2(1) item 13) | Amended by No 15 of 2007, Sch 1 item 115, effective Sch 1 (items 1–8, 22–149, 406(1)–(3)) and Sch 3 (items 6, 7): 15 Mar 2007 (s 2(1) items 2, 6) | Amended by No 79 of 2007, Sch 6 item 2, effective Sch 1 (items 1–27, 33–38, 43(1), (4), (5)), Sch 6 (items 1, 2, 8), Sch 7 (items 1–16), Sch 9 (items 1–13, 30–33) and Sch 10 (items 3–9, 32): 21 June 2007 (s 2(1) items 2, 4, 6) Sch 8 (items 1, 4–11, 26(1), (2) and (4)): 1 July 2007 (s 2(1) item 5) | Amended by No 101 of 2013, effective Sch 1 (items 1–8, 10) and Sch 2 (items 1, 8–19, 50): 29 June 2013 (s 2(1) items 2, 3) | Amended by No 2 of 2015, effective Sch 2 (items 73, 100–110) and Sch 4 (items 9–23, 79): 25 Feb 2015 (s 2(1) items 5, 6) Sch 2 (items 24–28): 1 July 2015 (s 2(1) item 4) | Amended by No 81 of 2016, Sch 10 item 69, effective Sch 10 (items 66–71, 93): 1 Jan 2017 (s 2(1) item 6) | Amended by No 69 of 2023, Sch 1 item 107 | Sch 1 item 108, effective Sch 1 (items 105–108): 1 Jan 2024 (s 2(1) item 3)