Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p30
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 30/35)
Character Range: 4133373–4136030

(c) the deductions you would otherwise get in the income year, or in a later year, because of expenditure from a previous year (e.g. the capital allowance deductions you would get for the cost of a depreciating asset);
 (d) the cost bases of your CGT assets.
 (4) Any unapplied total net forgiven amount is disregarded.
 (5) Special rules apply to debts of partnerships.

Subdivision 245‑A—Debts to which operative rules apply

Guide to Subdivision 245‑A

245‑5  What this Subdivision is about
      This Division applies to a debt if you can deduct interest payable on the debt.

Table of sections

Application of Division
245‑10 Commercial debts
245‑15 Non‑equity shares
245‑20 Parts of debts

Application of Division

245‑10  Commercial debts
  Subdivisions 245‑C to 245‑G apply to a debt of yours if:
 (a) the whole or any part of interest, or of an amount in the nature of interest, paid or payable by you in respect of the debt has been deducted, or can be deducted, by you; or
 (b) interest, or an amount in the nature of interest, is not payable by you in respect of the debt but, had interest or such an amount been payable, the whole or any part of the interest or amount could have been deducted by you; or
 (c) interest or an amount mentioned in paragraph (a) or (b) could have been deducted by you apart from the operation of a provision of this Act (other than paragraphs 8‑1(2)(a), (b) and (c)) that has the effect of preventing a deduction.
Note: Paragraphs 8‑1(2)(a), (b) and (c) prevent deductions for capital, private or domestic outgoings and for outgoings relating to exempt income or non‑assessable non‑exempt income.

245‑15  Non‑equity shares
  This Division applies to a *non‑equity share issued by a company as if it were a debt to which section 245‑10 applies that is owed by the company to the relevant shareholder.

245‑20  Parts of debts
  This Division applies to part of a debt in the same way as it applies to a whole debt.
Note: This Division treats interest, or an amount in the nature of interest, payable on a debt as being a separate debt if the interest or amount has accrued but has not been paid.

Subdivision 245‑B—What constitutes forgiveness of a debt

Guide to Subdivision 245‑B

245‑30  What this Subdivision is about

      A debt is forgiven if you no longer have to pay it.
      However, this Division does not apply to some cases of forgiveness, such as bankruptcy.

Table of sections

Operative provisions
245‑35 What constitutes forgiveness of a debt
245‑36 What constitutes forgiveness of a debt if the debt is assigned
245‑37 What constitutes forgiveness of a debt if a subscription for shares enables