Document ID: chunk:federal_register_of_legislation:C2025C00014:section:51ad:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 51AD (pt 1/10)
Character Range: 332483–335151

51AD  Deductions not allowable in respect of property used under certain leveraged arrangements
 (1) In this section:
arrangement includes:
 (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, whether unilateral or otherwise.
associate has the same meaning in relation to a person as that expression has in relation to a person in section 318.
construction includes manufacture.
control means effectively control.
goods includes whatever is capable of being owned or used.
hire‑purchase agreement means a hire purchase agreement to which Division 240 of the Income Tax Assessment Act 1997 applies.
lease, in relation to property, includes:
 (a) any arrangement under which a right to use the property is granted by the owner to another person; and
 (b) any arrangement under which a right to use the property, being a right derived directly or indirectly from a right referred to in paragraph (a), is granted by a person to another person;
but does not include a hire‑purchase agreement.
owner, in relation to property, includes a person who has taken, and holds, the property on hire under a hire‑purchase agreement.
person includes a person in the capacity of a trustee.
prescribed time means one o'clock in the afternoon, by standard time in the Australian Capital Territory, on 24 June 1982.
Note: This section applies to deductions under Division 40 (Capital allowances) and Division 43 (Capital works) of the Income Tax Assessment Act 1997 as if you were the owner of an asset you hold (under that Division) instead of any other person: see section 40‑135 of that Act.
 (1A) This section does not apply to property that is put to a tax preferred use (within the meaning of the Income Tax Assessment Act 1997) if the tax preferred use:
 (a) starts on or after 1 July 2007; and
 (b) does not occur under a legally enforceable arrangement entered into before 1 July 2007.
 (1B) This section does not apply to property that is put to a tax preferred use (within the meaning of the Income Tax Assessment Act 1997) if:
 (a) the tax preferred use starts on or after 1 July 2007; and
 (b) the tax preferred use occurs under a legally enforceable arrangement that was entered into before 1 July 2007; and
 (c) an election is made under item 71 of Schedule 1 to the Tax Laws Amendment (2007 Measures No. 5) Act 2007 to have subitem 71(2) of that Schedule apply to the property.
 (1C) This section does not apply to property on or after 1 July 2007 if:
 (a)