Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 11/16)
Character Range: 383538–386277

levy
26‑95 Superannuation guarantee charge
26 96 Laminaria and Corallina decommissioning levy cannot be deducted
26‑97 National Disability Insurance Scheme expenditure
26‑98 Division 293 tax cannot be deducted
26‑99 Excess transfer balance tax cannot be deducted
26-99B Build to rent development misuse tax cannot be deducted
26‑99C Australian IIR/UTPR tax and Australian DMT tax cannot be deducted
26‑100 Expenditure attributable to water infrastructure improvement payments
26‑102 Expenses associated with holding vacant land
26‑105 Non‑compliant payments for work and services

Operative provisions

26‑5  Penalties
 (1) You cannot deduct under this Act:
 (a) an amount (however described) payable, by way of penalty, under an *Australian law or a *foreign law; or
 (b) an amount ordered by a court to be paid on the conviction of an entity for an offence against an *Australian law or a *foreign law.
 (2) This section does not apply to an amount payable, by way of penalty, under Subdivision 162‑D of the *GST Act.
Note: See paragraph 25‑5(1)(ca) for the deductibility of penalties that arise under Subdivision 162‑D of the GST Act.

26‑10  Leave payments
 (1) You cannot deduct under this Act a loss or outgoing for long service leave, annual leave, sick leave or other leave except:
 (a) an amount paid in the income year to the individual to whom the leave relates (or, if that individual has died, to that individual's dependant or *legal personal representative); or
 (b) an *accrued leave transfer payment that is made in the income year.
 (2) An accrued leave transfer payment is a payment that an entity makes:
 (a) in respect of an individual's leave (some or all of which accrued while the entity was required to make payments in respect of the individual's leave, or leave the individual might take); and
 (b) when the entity is no longer required (or is about to stop being required) to make payments in respect of such leave; and
 (c) to another entity when the other entity has begun (or is about to begin) to be required to make payments in respect of such leave; and
 (d) under (or for the purposes of facilitating the provisions of) an *Australian law, or an award, order, determination or industrial agreement under an *Australian law.
It does not matter whether the leave accrues to the individual as an employee or for some other reason.
Example: Your employee goes to a new employer. You pay the new employer $2,000 for the employee's unused long service leave because an industrial agreement requires you to make that payment.
Note: An accrued leave transfer payment is included in the assessable income of the entity to which it is made: see section 15‑5.

26‑15  Franchise fees windfall tax
  You cannot deduct