Document ID: chunk:federal_register_of_legislation:C2004C01257:clause:2_1:p14
Version: federal_register_of_legislation:C2004C01257
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 14/20)
Character Range: 42299–45010

a bad debt.

 (2) However, a debt arrangement that is a *notional loan is not taken to have terminated merely because it has been renewed or extended.

Note: Notional loans arise under Division 240. Under that Division, they are taken to have ended if they are renewed or extended.

 (3) Where a debt is terminated under paragraph (1)(b) or (c) as a result of the debt being reduced, the remaining debt is taken to be a new debt to which section 243‑15 applies.

243‑30  What is the financed property and the debt property?

 (1) Property is the financed property if the expenditure referred to in paragraph 243‑15(1)(a) is on the property, is on the acquisition of the property, results in the creation of the property or is otherwise connected with the property.

 (2) If the debt agreement is a *notional loan, the property that is the subject of the agreement is the financed property.

Note: Notional loans arise under Division 240.

 (3) Property is the debt property if:
 (a) it is the *financed property; or
 (b) the property is provided as security for the debt.

Subdivision 243‑B—Working out the excessive deductions

Table of sections

Operative provisions

243‑35 Working out the excessive deductions

Operative provisions

243‑35  Working out the excessive deductions

 (1) The *capital allowance deductions have been excessive having regard to the amount of the debt that remains unpaid if the amount worked out under subsection (2) exceeds the amount worked out under subsection (4).

 (2) This is how to work out the total net *capital allowance deductions:

Working out the total net capital allowance deductions

Step 1. Add up all of the debtor's *capital allowance deductions (other than development allowance or drought investment allowance) in respect of the expenditure or the *financed property (including deductions because of balancing adjustments) for the income year in which the termination occurs or an earlier income year.

Step 2. Deduct from that any amount that is included in the assessable income of the debtor of any income year by virtue of a provision of this Act (other than this Division) as a result of the disposal of the *financed property the effect of which is to reverse a deduction covered by Step 1.

Step 3. Deduct from the result an amount equal to the sum of any amounts included in the entity's assessable income as a result of an earlier application of this Division to the debt.

Step 4. Add to the result an amount equal to the sum of any deductions to which the entity is entitled under section 243‑45 (repayments of the original debt after termination) or 243‑50 (repayments of the replacement debt) because of payments in respect of the debt.