Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_5:p5
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 5/6)
Character Range: 83010–85462

deducting a loss or outgoing for a *leisure facility if at all times in the income year:
 (a) you hold the leisure facility for sale in the ordinary course of your business of selling leisure facilities; or
 (b) you use the leisure facility (or hold it for use) mainly to provide it:
 (i) in the ordinary course of your *business of providing leisure facilities for payment; or
 (ii) to produce your assessable income in the nature of rents, lease premiums, licence fees or similar charges; or
 (iii) for your employees to use; or
 (iv) for the care of your employees' children.
In the case of a company, subparagraphs (b)(iii) and (iv) do not apply to employees who are *members or directors of the company.

Exception—part year use of leisure facilities

 (4) If you use a *leisure facility (or hold it) as described in subsection (3) at all times during part of the income year, then subsection (1) does not stop you deducting so much of the loss or outgoing as is reasonable in the circumstances.

Exception—boats

 (5) Subsection (1) does not stop you deducting a loss or outgoing for a boat if at all times in the income year you:
 (a) hold the boat as *trading stock for sale in the ordinary course of a *business that you carry on; or
 (b) use the boat (or hold it) mainly for letting it on hire in the ordinary course of a *business that you carry on; or
 (c) use the boat (or hold it) mainly for transporting for payment in the ordinary course of a *business that you carry on, the public or goods; or
 (d) use the boat for a purpose that is essential to the efficient conduct of a *business that you carry on.

Exception—part year use of boats

 (6) If you use a boat (or hold it) as described in subsection (5) at all times during part of the income year, then subsection (1) does not stop you deducting so much of the loss or outgoing as is reasonable in the circumstances.

Anti-avoidance—when exceptions do not apply

 (7) A *leisure facility or boat is taken not to be used (or held) as described in subsection (3) or (5) if:
 (a) apart from this subsection, the leisure facility or boat would be used (or held) in that way because of a *scheme; and
 (b) in the Commissioner's opinion, the scheme would not have been entered into or carried out if this section had not been enacted.

Exception when you provide a fringe benefit

 (8) Subsection (1) does not stop you deducting expenditure you incur in *providing a *fringe benefit.