Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p2
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 2/52)
Character Range: 7049–9996

from financial arrangements
230‑15 Gains are assessable and losses deductible
230‑20 Gain or loss to be taken into account only once under this Act
230‑25 Associated financial benefits to be taken into account only once under this Act
230‑30 Treatment of gains and losses related to exempt income and non‑assessable non‑exempt income
230‑35 Treatment of gains and losses of private or domestic nature

Method to be applied to take account of gain or loss
230‑40 Methods for taking gain or loss into account

Financial arrangement concept
230‑45 Financial arrangement
230‑50 Financial arrangement (equity interest or right or obligation in relation to equity interest)
230‑55 Rights, obligations and arrangements (grouping and disaggregation rules)

General rules
230‑60 When financial benefit provided or received under financial arrangement
230‑65 Amount of financial benefit relating to more than one financial arrangement etc.
230‑70 Apportionment when financial benefit received or right ceases
230‑75 Apportionment when financial benefit provided or obligation ceases
230‑80 Consistency in working out gains or losses (integrity measure)
230‑85 Rights and obligations include contingent rights and obligations

Objects

230‑10  Objects of this Division
  The objects of this Division are:
 (a) to minimise the extent to which the tax treatment of gains and losses from your *financial arrangements distorts, by providing inappropriate impediments and stimulation, your trading, financing and investment decisions and your risk taking and risk management; and
 (b) to do so by aligning more closely the tax and commercial recognition of gains and losses from your financial arrangements in the following ways:
 (i) by allocating the gains and losses to income years throughout the life of your financial arrangements on a reasonable basis;
 (ii) by generally recognising gains and losses on revenue rather than capital account; and
 (c) to appropriately take account of, and minimise, your compliance costs.

Tax treatment of gains and losses from financial arrangements

230‑15  Gains are assessable and losses deductible

Gains
 (1) Your assessable income includes a gain you make from a *financial arrangement.
Note: This Division does not apply to gains that are subject to exceptions under Subdivision 230‑H.

Losses
 (2) You can deduct a loss you make from a *financial arrangement, but only to the extent that:
 (a) you make it in gaining or producing your assessable income; or
 (b) you necessarily make it in carrying on a *business for the purpose of gaining or producing your assessable income.
Note: This Division does not apply to losses that are subject to exceptions under Subdivision 230‑H.
 (3) You can also deduct a loss you make from a *financial arrangement if:
 (a) you are an *Australian entity; and
 (b) you make the loss in deriving income from a foreign source; and
 (c) the income is *non‑assessable non‑exempt income