Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p27
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 27/35)
Character Range: 4125772–4128616

Step 1 in subsection 243‑35(2).
 (2) Any amount that would be included in the debtor's assessable income is reduced if the amount that would have been worked out under subsection 243‑35(4) would have exceeded the amount worked out under subsection 243‑35(2) if the following assumptions were applied in both subsections:

      Assumptions to be applied
         (1) That the debt was terminated at the time of the disposal of the *financed property, referred to in subsection (1) of this section.
         (2) The amount in Step 2 in subsection 243‑35(2) were increased by the amount that would otherwise be included in the debtor's assessable income.
         (3) The amount worked out under subsection 243‑35(4) were reduced by any amount by which:

                (a) the amount arising as a result of the disposal that is taken into account for the purposes of the provision mentioned in subsection (1);

          exceeds:

                (b) the unpaid amount of the debt immediately before the time of the disposal of the *financed property, referred to in subsection (1).
 (3) The amount is to be reduced by the amount of the excess.

243‑58  Adjustment where debt only partially used for expenditure
  If the debt is only partially used to finance the expenditure, or the property, in respect of which the *capital allowance deductions referred to in Step 1 in subsection 243‑35(2) are allowed, the amount of any deduction, any reduction in a deduction or any amount included in assessable income is to be so much as is reasonable taking into account the proportion of the debt that is used for that purpose.

Subdivision 243‑D—Special provisions

Table of sections

Operative provisions
243‑60 Application of Division to partnerships
243‑65 Application where partner reduces liability
243‑70 Application of Division to companies ceasing to be 100% subsidiary
243‑75 Application of Division where debt forgiveness rules also apply

Operative provisions

243‑60  Application of Division to partnerships
  This Division applies to a partnership in respect of the partnership's debts and in respect of debts of a partner, and references to a debtor include a reference to a partnership.

243‑65  Application where partner reduces liability
 (1) This section applies to a debt in relation to a partner in a partnership if:
 (a) in connection with an *arrangement, the partner's liability to pay the debt is reduced or eliminated and the partner's interest in the partnership ceases or is varied or transferred; and
 (b) an excess would have been worked out under subsection 243‑35(1) if, at the time when the debt is reduced or eliminated, the debt had been terminated and remained unpaid and this section had not applied.
 (2) If this section applies to a debt in relation to a partner in a partnership, an amount is to be included