Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p31
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 31/52)
Character Range: 77657–80319

and the gain has been included in your assessable income under this Division; or
 (b) the right is one in respect of money that you lent in the ordinary course of your *business of lending money; or
 (c) the right is one that you bought in the ordinary course of your business of lending money.
 (4) The loss referred to in subsection (3) occurs when you write off the right to the *financial benefit (or the part of the financial benefit) as a bad debt.
 (5) The amount of the loss referred to in subsection (3) is:
 (a) if paragraph (3)(a) applies—so much of the gain referred to in that paragraph as is reasonably attributable to the *financial benefit (or the part of the financial benefit); or
 (b) if paragraph (3)(b) applies—the amount of the financial benefit (or the part of the financial benefit); or
 (c) if paragraph (3)(c) applies—the amount of the financial benefit (or the part of the financial benefit) but only up to the value of the financial benefit you provided to acquire the right to the financial benefit (or the part of the financial benefit).
 (6) For the purposes of this Act, a deduction for the loss referred to in subsection (3) is to be treated as a deduction of a bad debt.
Note: Various provisions in this Act and the Income Tax Assessment Act 1936 restrict the availability of deductions for bad debts and make provision in relation to the recoupment of amounts in relation to bad debts that have been written off. These provisions are set out in subsection 25‑35(5).

Reassessment and re‑estimation

230‑185  Reassessment
 (1) You must make a fresh assessment of which gains and losses from a *financial arrangement the accruals method should apply to, and which gains and losses from that arrangement the realisation method should apply to, if:
 (a) the accruals method, or the realisation method, provided for in this Subdivision applies to gains and losses from the arrangement; and
 (b) there is a material change to:
 (i) the terms and conditions of the arrangement; or
 (ii) circumstances that affect the arrangement.
 (2) Without limiting subsection (1), the following changes are material changes to the terms and conditions of, or circumstances that affect, the *financial arrangement:
 (a) a change to the terms or conditions of the arrangement in a way that alters the essential nature of the arrangement (for example, by altering it from a *debt interest to an *equity interest or from an equity interest to a debt interest);
 (b) a change to the terms or conditions of the arrangement in a way that materially affects the contingencies on which significant obligations and rights under the arrangement are dependent