Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_104:p1
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 104 (pt 1/5)
Character Range: 274982–277667

104  Application of financial arrangement amendments (financial arrangements)

Future financial arrangements
(1) The financial arrangement amendments apply to financial arrangements that you start to have in the first applicable income year or a later income year.

Existing financial arrangements
(2) The financial arrangement amendments apply to all financial arrangements that:
 (a) you started to have before the start of the first applicable income year; and
 (b) you have at the start of that income year;
only if you elect to have this subitem apply to you.
(3) The financial arrangement amendments do not apply under subitem (2) to a financial arrangement that arose from a disposal of property (including a disposal of a capital asset, a revenue asset, a depreciating asset or trading stock).
(4) The financial arrangement amendments do not apply under subitem (2) to a financial arrangement if:
 (a) the election is made by the head company of a consolidated group or MEC group; and
 (b) the election specifies that the election is not to apply to financial arrangements in relation to life insurance business carried on by a member of the consolidated group or MEC group; and
 (c) the arrangement is one that relates to the life insurance business carried on by a member of the consolidated group or MEC group.
(5) An election under subitem (2) must:
 (a) be made on or before the first lodgment date that occurs on or after the start of the first applicable income year; and
 (b) be notified to the Commissioner on or before the lodgment date referred to in paragraph (a).
Note: The Commissioner may, in limited circumstances, extend the time on or before which the election must be notified to the Commissioner. See item 104A.
(6) If you make an election under subitem (2), treat subsection 230‑455(7) of the Income Tax Assessment Act 1997 as allowing you to make an election under that subsection that applies to:
 (a) in any case—all of the financial arrangements that you start to have in the income year in which the election is made or a later income year; or
 (b) if you make the election at the same time as you make the election under subitem (2)—all of your financial arrangements to which the financial arrangements amendments apply.
(7) If you make an election under subitem (2), treat section 230‑150 of the Income Tax Assessment Act 1997 as allowing you to make an election under that section that, despite paragraphs 230‑160(1)(b) and 230‑165(1)(b), applies to a financial arrangement that:
 (a) you started to have before the start of the first applicable income year; and
 (b) you have at the start of that income year.
(7A) An election that you make under