Document ID: chunk:federal_register_of_legislation:C2025C00014:clause:2d_2:p7
Version: federal_register_of_legislation:C2025C00014
Segment Type: clause
Provision Reference: sch 2D cl 2 (pt 7/9)
Character Range: 2189211–2191882

payable by the transition taxpayer in respect of annual leave and long service leave if, at the transition time, all employees of the transition taxpayer began to take all leave of that kind that they were eligible to take; and
 (b) if the transition taxpayer elects, in accordance with subsection (6), that this paragraph applies—the amount that, according to actuarial principles, would need to be set aside at the transition time to meet all obligations of the transition taxpayer that might reasonably be expected to arise after that time to make annual leave payments and long service leave payments (other than in respect of leave taken into account under paragraph (a)) for periods of service of employees occurring before the transition time; and
 (c) if paragraph (b) does not apply—the present value, at the transition time, of all annual leave payments and long service leave payments (other than in respect of leave taken into account under paragraph (a)) that the transition taxpayer would become liable to make after that time in respect of periods of service of employees occurring before that time if all such leave became eligible to be taken.

Election
 (6) The election mentioned in paragraph (5)(b) must be made in writing before:
 (a) the day by which the transition taxpayer's return of income for the transition year is due to be lodged; or
 (b) such later day as the Commissioner allows.

57‑65  Treatment of bad debts
 (1) This section applies to a deduction otherwise allowable to the transition taxpayer for a year of income under this Act for the writing off as bad of the whole or part of a debt owing to the transition taxpayer.

Deduction allowable only if sum of all deductions exceeds doubtful debt provision limit
 (2) The deduction is not allowable if the sum of all deductions of the transition taxpayer to which this section applies for the year of income is less than or equal to the doubtful debt provision limit (see subsection (4)) for the year of income.

Amount of deduction not allowable
 (3) If the sum is greater than that limit, so much of the deduction as is worked out using the following formula is not allowable:

Meaning of doubtful debt provision limit
 (4) The doubtful debt provision limit for a year of income is:
 (a) if the year of income is the transition year—the pre‑transition doubtful debt limit (see subsection (5)); or
 (b) in any other case—that limit as reduced by the total amount of deductions to which this section applies that, because of subsection (2) or (3), have not been allowable to the transition taxpayer for all previous years of income.

Meaning of pre‑transition doubtful debt limit
 (5)