Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p21
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 21/80)
Character Range: 4393424–4396197

ensure that an *AMIT's amounts of assessable income, *exempt income, *non‑assessable non‑exempt income and *tax offsets for an income year are allocated, according to their character, into separate components for the purposes of this Act.
 (2) An *AMIT's trust component for an income year:
 (a) of a character relating to assessable income; or
 (b) of a character relating to *exempt income; or
 (c) of a character relating to *non‑assessable non‑exempt income; or
 (d) of a character relating to a *tax offset;
is the amount of that character for the income year worked out for the AMIT in accordance with the rules in sections 276‑265 and 276‑270.
 (3) This section is subject to Subdivision 276‑F (which deals with the effect of *unders and *overs).
 (4) The rules in sections 276‑265 and 276‑270 apply only for the purposes of determining the amounts of *trust components.

276‑265  Rules for working out trust components—general rules

General taxability and residence assumptions to be made
 (1) Work out the amount of the *trust component of each character in relation to the *AMIT assuming that the AMIT's trustee:
 (a) was liable to pay *tax; and
 (b) was an Australian resident.

Trust components of assessable income character are net of deductions
 (2) The sum of all of the *trust components of a character relating to assessable income of the *AMIT for the income year equals the total assessable income of the AMIT for the income year, reduced by all deductions of the AMIT for the year. To avoid doubt, for the purposes of this subsection, apply subsection (1).
 (3) However, if that total assessable income does not exceed those deductions, the amount of each *trust component of a character relating to assessable income of the *AMIT for the income year is nil.

276‑270  Rules for working out trust components—allocation of deductions
 (1) An amount of a deduction that relates directly only to one or more amounts of assessable income can be deducted only against that amount or those amounts of assessable income. If there are 2 or more such amounts of assessable income, the amount of the deduction is allocated against those amounts on a reasonable basis.
 (2) If an amount of a deduction remains after applying the rules in subsection (1), the remainder can be deducted against other amounts of assessable income. The amount of the remainder is allocated against those amounts on a reasonable basis.
 (3) For the purposes of this section, determine whether a deduction relates directly to an amount of assessable income on a reasonable basis.

Subdivision 276‑F—Unders and overs

Guide to Subdivision 276‑F

276‑300  What this Subdivision is about

      This Subdivision sets out how underestimates and overestimates of amounts at the trust level