Document ID: chunk:federal_register_of_legislation:C2025C00029:section:10:p28
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 10 (pt 28/29)
Character Range: 282746–285505

this Act if they are ordinary income and, if not, by section 26AH of the Income Tax Assessment Act 1936.

15‑80  Franked distributions entitled to a foreign income tax deduction—Additional Tier 1 capital exception
 (1) If section 207‑158 would, apart from subsection 207‑158(2), apply to a *franked distribution, then an amount equal to the *foreign income tax deduction referred to in subsection (1) of that section is included in the assessable income of the entity that made the distribution for the income year mentioned in subsection (2) of this section.
 (2) The income year is:
 (a) if the *foreign tax period in which the *foreign income tax deduction arises falls wholly within an income year of the entity—that income year; or
 (b) if the foreign tax period in which the foreign income tax deduction arises straddles 2 income years of the entity—the later of those income years.

Division 17—Effect of GST etc. on assessable income

Guide to Division 17

17‑1  What this Division is about
      This Division sets out the effect of the GST in working out assessable income. Generally speaking, GST, input tax credits and adjustments under the GST Act are disregarded.

Table of sections
17‑5 GST and increasing adjustments
17‑10 Certain decreasing adjustments
17‑15 Elements in calculation of amounts
17‑20 GST groups and GST joint ventures
17‑30 Special credits because of indirect tax transition
17‑35 Certain sections not to apply to certain assets or expenditure

17‑5  GST and increasing adjustments
  An amount is not assessable income, and is not *exempt income, to the extent that it includes an amount relating to:
 (a) *GST payable on a *taxable supply; or
 (b) an *increasing adjustment that relates to a *supply; or
 (c) an *increasing adjustment that:
 (i) relates to an *acquisition; and
 (ii) arises in circumstances that also give rise to a *recoupment that is included in assessable income.

17‑10  Certain decreasing adjustments
 (1) An amount of a *decreasing adjustment that arises under Division 129 or 132 of the *GST Act is assessable income, unless the entity that has the adjustment is an *exempt entity.
 (2) However, the amount is not assessable income to the extent that, because it becomes a component of a *net input tax credit, a reduction is made under section 103‑30 (reduction of cost base etc. by net input tax credits).

17‑15  Elements in calculation of amounts
  In calculating an amount that may be included in assessable income:
 (a) an element in the calculation that is an amount received or receivable is treated as not including an amount equal to any *GST payable on a *taxable supply related to the amount received or receivable, or any *increasing adjustment related to that amount; and
 (b) an element