Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_2:p16
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 16/18)
Character Range: 819785–822749

assessable income under section 86‑15 of the Income Tax Assessment Act 1997).

45‑370  Working out your adjusted assessed taxable income for the variation year
 (1) Your adjusted assessed taxable income for the variation year is your taxable income for the year, reduced by any *net capital gain included in your assessable income for the year.

Exception: superannuation entities and net capital gains
 (2) In working out the adjusted assessed taxable income, taxable income is not reduced by any *net capital gain in the case of:
 (a) a *complying approved deposit fund or a *non‑complying approved deposit fund for the variation year; or
 (b) a *complying superannuation fund or a *non‑complying superannuation fund for the variation year; or
 (c) a *pooled superannuation trust for the variation year.

Special rule for life insurance companies
 (3) The adjusted assessed taxable income of a *life insurance company for the variation year is worked out as follows:

      Method statement
           Step 1. Recalculate the *ordinary class of the taxable income for the variation year on the basis that the assessable income that relates to the class did not include any *net capital gain.
           Step 2. Add to the step 1 result the *complying superannuation class of the taxable income for the variation year.

45‑375  Adjusted assessed tax on adjusted assessed taxable income
  Your adjusted assessed tax on your *adjusted assessed taxable income for the variation year is worked out as follows:

      Method statement
           Step 1. The income tax payable on your *adjusted assessed taxable income for the variation year is worked out disregarding any *tax offset under:

                (aa) section 61‑110 of the Income Tax Assessment Act 1997 (the Low Income tax offset); or
                (a) Subdivision 61‑G of the Income Tax Assessment Act 1997 (the private health insurance tax offset); or
                (ca) Subdivision 61‑L of the Income Tax Assessment Act 1997 (tax offset for Medicare levy surcharge (lump sum payments in arrears)); or
                (d) section 205‑70 of the Income Tax Assessment Act 1997 (the tax offset for *franking deficit tax liabilities); or
                (f) section 290‑230 of the Income Tax Assessment Act 1997 (the tax offset for superannuation contributions made for a spouse); or
                (fa) Subdivision 360‑A of the Income Tax Assessment Act 1997 (the tax offset for early stage investors in innovation companies); or
                (g) Subdivision 418‑B of the Income Tax Assessment Act 1997 (the junior minerals exploration incentive tax offset).

           Step 2. The *Medicare levy payable on your *adjusted assessed taxable income for the variation year is worked out disregarding sections 8B, 8C, 8D, 8E, 8F and 8G of the Medicare Levy Act 1986 (which increase Medicare levy in certain cases).
           Step 3. The amount (if any) that you would have been liable to pay for