Document ID: chunk:federal_register_of_legislation:C2010C00685:clause:3_1:p2
Version: federal_register_of_legislation:C2010C00685
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 2/9)
Character Range: 67837–70504

the amount determined, by written notice, by the Treasurer.

Note: The maximum amount is taken into account under subsection 396‑70(5) in approving projects.

396‑25  Borrower cannot deduct LTF interest for which lender has tax offset

 (1) The total of amounts that an entity that is a borrower under a *land transport facilities borrowings agreement can deduct for an income year for *LTF interest covered by the agreement is reduced by:

 (2) In subsection (1):

tax offset entitlement is the total of the amounts of *tax offset worked out under subsection 396‑15(2) for LTF interest that is covered by the agreement and that is derived by a lender in the income year.

 (3) If the amount by which deductions for an income year are to be reduced by subsection (1) (or by a previous operation of this subsection) exceeds the total of those deductions:
 (a) the deductions are reduced to nil; and
 (b) the total amount that the borrower can deduct for the next income year for *LTF interest covered by the agreement is reduced by the total of:
 (i) that excess; and
 (ii) the amount worked out for that next income year using the formula in subsection (1).

Note: This can happen where interest is incurred by the borrower in an income year after the income year in which it is derived by the lender.

Subdivision 396‑B—What LTF interest is covered?

Guide to Subdivision 396‑B

      This Subdivision sets out the interest for which a tax offset can be obtained.

Table of sections

Operative provisions

396‑30 What is LTF interest?
396‑35 Interest covered by land transport facilities borrowings agreement
396‑40 Interest ceasing to be covered by a land transport facilities borrowings agreement

[This is the end of the Guide.]

Operative provisions

396‑30  What is LTF interest?

 (1) LTF interest, in relation to a borrower, is:
 (a) a payment of interest, or in the nature of interest, made or liable to be made by the borrower, for which the borrower is, apart from this Division, entitled to a deduction; or
 (b) an amount allowable as a deduction to the borrower under section 159GT of the Income Tax Assessment Act 1936 in relation to a *borrowing that is covered by a *land transport facilities borrowings agreement.

Note: Section 159GT deals with certain securities.

 (2) LTF interest, in relation to a lender, is:
 (a) a payment of interest, or in the nature of interest, made or liable to be made to the lender, that is included in the lender's assessable income for an income year; or
 (b) an amount included in the assessable income of the lender under section 159GQ of the Income Tax Assessment Act 1936 in relation to a *borrowing that is