Document ID: chunk:federal_register_of_legislation:C2025C00014:clause:2d_2:p8
Version: federal_register_of_legislation:C2025C00014
Segment Type: clause
Provision Reference: sch 2D cl 2 (pt 8/9)
Character Range: 2191634–2194394

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) The pre‑transition doubtful debt limit is the total of the amounts that, under generally accepted accounting principles, would be the appropriate doubtful debt provisions in relation to all debts owed to the transition taxpayer as at the transition time.

Reduction of limit for excess recovery
 (6) If:
 (a) at the transition time, a debt is owed to the transition taxpayer; and
 (b) the sum of:
 (i) the amount (if any) that, under generally accepted accounting principles, would be the appropriate doubtful debt provision in relation to the debt as at the transition time; and
 (ii) any amounts later recovered in respect of the debt;
  exceeds the amount of the debt;
the pre‑transition doubtful debt limit is reduced by the amount of the excess.

Reduction of limit if debt later disposed of
 (7) If:
 (a) at the transition time, a debt is owed to the transition taxpayer; and
 (b) there is an amount (the debt provision amount) greater than nil that, under generally accepted accounting principles, would be the appropriate doubtful debt provision in relation to the debt as at the transition time; and
 (c) after the transition time, the transition taxpayer disposes of the debt to another person;
the pre‑transition doubtful debt limit is reduced by:
 (d) if, after the transition time, the transition taxpayer wrote off part of the debt as bad—the excess (if any) of the debt provision amount over the amount or amounts so written off; or
 (e) in any other case—the debt provision amount.

57‑70  Treatment of superannuation lump sums and employment termination payments
 (1) This section applies to a deduction otherwise allowable to the transition taxpayer for a year of income under section 8‑1 (about general deductions) or 25‑50 (about pensions, gratuities or retiring allowances) of the Income Tax Assessment Act 1997 for a superannuation lump sum or an employment termination payment for a person who was an employee of the transition taxpayer at any time before the transition time (regardless of whether the person was an employee at or after the transition time).
 (2) So much (if any) of the deduction as relates to a period of service of the employee before the transition time is not allowable.
 (3) This section does not apply to an early retirement scheme payment (within the meaning of the Income Tax Assessment Act 1997), or a genuine redundancy payment (within the meaning of that Act).

Subdivision 57‑H—Domestic losses

57‑75  Domestic losses
  In applying section 36‑15 or 36‑17 of