Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 3/9)
Character Range: 342428–345231

entity to asset entity in relation to approved economic infrastructure facility
25‑120 Transitional—deduction for payment of rent from land investment by operating entity to asset entity
25‑125 COVID‑19 tests

Operative provisions

25‑5  Tax‑related expenses
 (1) You can deduct expenditure you incur to the extent that it is for:
 (a) managing your *tax affairs; or
 (b) complying with an obligation imposed on you by a *Commonwealth law, insofar as that obligation relates to the *tax affairs of an entity; or
 (c) the *general interest charge or the *shortfall interest charge; or
 (ca) a penalty under Subdivision 162‑D of the *GST Act; or
 (cb) levy under the Major Bank Levy Act 2017; or
 (d) obtaining a valuation in accordance with section 30‑212 or 31‑15; or
 (e) managing your *Australian GloBE tax affairs; or
 (f) complying with an obligation imposed on you by a *Commonwealth law, insofar as that obligation relates to the Australian GloBE tax affairs of an entity.
Note 1: To find out whether a trustee of a deceased estate can deduct expenditure under this section, see subsection 69(7) of the Income Tax Assessment Act 1936.
Note 2: If you receive an amount as recoupment of the expenditure, the amount may be included in your assessable income: see Subdivision 20‑A.

No deduction for certain expenditure
 (2) You cannot deduct under subsection (1):
 (a) *tax; or
 (b) an amount withheld or payable under Part 2‑5 or Part 2‑10 in Schedule 1 to the Taxation Administration Act 1953; or
 (c) expenditure for *borrowing money (including payments of interest) to pay an amount covered by paragraph (a) or (b); or
 (d) expenditure for a matter relating to the commission (or possible commission) of an offence against an *Australian law or a *foreign law; or
 (e) a fee or commission for advice about the operation of a *Commonwealth law relating to taxation, unless that advice is provided by a *recognised tax adviser.

No deduction for expenditure excluded from general deductions
 (3) You cannot deduct expenditure under subsection (1) to the extent that a provision of this Act (except section 8‑1) expressly prevents or limits your deducting it under section 8‑1 (about general deductions). It does not matter whether the provision specifically refers to section 8‑1.

No deduction for capital expenditure
 (4) You cannot deduct capital expenditure under subsection (1). However, for this purpose, expenditure is not capital expenditure merely because the *tax affairs or *Australian GloBE tax affairs concerned relate to matters of a capital nature.
Example: Under this section, you can deduct expenditure you incur in applying for a private ruling on whether you can depreciate an item of property.

Use of property taken to be for income producing purpose
 (5) Under some provisions