Document ID: chunk:federal_register_of_legislation:C2004A00684:clause:1_3:p3
Version: federal_register_of_legislation:C2004A00684
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 3/5)
Character Range: 7020–9559

income year for you is reduced by so much of your *net exempt income as is not applied for that income year under section 36‑10 or 36‑15 (about tax losses). This reduction is made before you apply the paragraph 35‑10(2)(b) amount against assessable income from the *business activity.

35‑20  Modification if you become bankrupt

 (1) The rule in section 35‑10 is modified as set out in subsection (3) for an income year if in that year (the current year) you become bankrupt or are released from a debt by the operation of an Act relating to bankruptcy.

 (2) The rule is also modified as set out in subsection (3) if:
 (a) you became bankrupt before the current year; and
 (b) the bankruptcy is annulled in the current year under section 74 of the Bankruptcy Act 1966 because your creditors have accepted a proposal for a composition or scheme of arrangement; and
 (c) under the composition or scheme of arrangement, you have been, will be or may be released from some or all of the debts from which you would have been released if you had instead been discharged from the bankruptcy.

 (3) This Act applies to you as if any amount that:
 (a) paragraph 35‑10(2)(b) had applied to for an income year before the current year for you; and
 (b) you have not yet deducted;
were not an amount attributable to the *business activity that you can deduct for the current year or a later income year.

35‑25  Application of Division to certain partnerships

  For the purpose of applying the tests in sections 35‑30, 35‑40 and 35‑45 where you carry on a *business activity in an income year as a partner, ignore:
 (a) any part of the assessable income from the business activity for the year that is attributable to the interest of a partner that is not an individual in the partnership net income or partnership loss for the year; and
 (b) any part of the assessable income from the business activity for the year that is derived from the activity by another partner otherwise than as a member of the partnership; and
 (c) any part of the *reduced cost bases or other values of assets of the partnership used in carrying on the activity in that year that is attributable to the interest of a partner that is not an individual in those assets; and
 (d) any part of the reduced cost bases or other values of assets owned or leased by another partner that are not partnership assets and used in carrying on the activity in that year.

35‑30  Assessable income test

  The rule in section 35‑10 does not apply to a *business activity for an income